SIP Calculator / If you deposit Rs 5000 every month in SIP, how much fund will be ready in 15 years?

Amid the volatility in the stock market, huge investments are being made in mutual fund SIPs. Common investors are investing money in SIPs in large numbers. SIP is helpful in creating a huge fund in the long term. Although, there is a risk of stock market in it, but compounding gives a big return.

SIP Calculator: The stock market in India has been witnessing huge fluctuations in recent times, but despite this, investors' confidence in mutual fund systematic investment plan (SIP) is continuously increasing. Common investors of the country are increasingly investing money in SIP. The reason for this is that SIP is proving to be an excellent and reliable option for creating a huge fund in the long term. Although SIP has a risk associated with the stock market, but this risk also brings the possibility of high returns in the long run. Apart from this, the magic of compounding makes SIP more attractive. In this article, we will know that if you do a SIP of Rs 5000 every month, then how much fund can be prepared in 15 years and what important things should be kept in mind before investing. Keep these important things in mind before investing in SIP

Before starting investing in SIP, it is important to understand some important things so that you can easily achieve your financial goals:

Long-term investment: The longer the period for which you invest in SIP, the more benefits you get. The full benefit of compounding is available in the long run, because your investment grows rapidly by getting interest on interest.

Capital gains tax: You may have to pay capital gains tax on the returns from SIP. Therefore, it can be beneficial to invest a little extra time in investing to reach your financial goal.

Risk of fluctuations: Returns in SIP are not always the same. Due to the fluctuations in the stock market, the returns also keep changing. Therefore, patience and disciplined investment are necessary.

Investment goal and risk tolerance: Choose the right mutual fund based on your financial goal and risk tolerance. Choose the appropriate option for yourself from equity, debt, or hybrid funds.

How much fund can be generated in 15 years from a SIP of Rs 5000 per month?

Returns in SIP are calculated based on the estimated annual return. This return depends on the mutual fund you choose and the market condition. Let's see how much fund can be generated in 15 years if you do a SIP of Rs 5000 every month at different return rates:

12% annual return: If you get an average annual return of 12%, then your total investment (5,000 x 12 x 15 = Rs 9 lakh) can grow to around Rs 23.79 lakh in 15 years.

15% annual return: If the rate of return remains 15% annually, then your fund can grow to around Rs 30.81 lakh in 15 years.

18% annual return: If you get an average return of 18%, then after 15 years your fund can reach around Rs 36.69 lakh.

Note: The above calculation is based on compounding and is based on estimated returns. The actual return depends on the market condition and the performance of the fund chosen.

Why is SIP beneficial?

The magic of compounding: Regular investment in SIP and compounding makes your money grow faster over time.
Rupee cost averaging: In the fluctuations of the market, through SIP, you can invest at an average cost, which reduces the risk.
Disciplined investment: Investing a fixed amount every month maintains financial discipline.
Flexibility: You can increase or decrease the amount of SIP as per your need, or stop it anytime.

Disclaimer: This article is written for information purposes only. Please consult your financial advisor before making any kind of investment or taking any financial risk. Zoom News will not be responsible for any kind of risk.