How much can you amass with a Rs. 5,000 SIP every month?

Making any new SIP investment? You may consider SIP mutual fund investments for amassing a sizable corpus in the future. However, not all SIP plans require considerable investments from the outset. You can save money with clear goals and a fixed target in your mind as well. This will help you amass sufficient money for meeting specific financial objectives such as the higher education of children or even retirement planning. When it comes to monthly SIP investments, you can simply plan for an amount which is sustainable and one that you can comfortably invest without straining your regular expenditure and other basic necessities.

You can start with an SIP mutual fund investment of Rs. 5,000 every month. Now, as experts wonder, how much can you amass if your SIP plan is for Rs. 5,000 every month? Experts feel that if you buy SIP online for this amount in an equity mutual fund at the growth rate which is assumed at 12%, you can accumulate approximately Rs. 50 lakh in a period of 20 years. Out of this handsome corpus, you will have invested just Rs. 12 lakh yourself while the rest is what you make by way of profits.

However, you can scale up your corpus by deftly using your systematic investment plan. Your SIP plans may be tweaked once you start increasing your savings to Rs. 10,000 with an increase in your income. Invest Rs. 10,000 thereafter and the final maturity amount will go up to Rs. 1 crore. Over a longer duration of about 25 years, savings of Rs. 5-10,000 will help you accumulate roughly Rs. 95,00, 000-1,95,00,000. This is assuming an annual growth rate of 12%. However, prior to commencing your investment journey, ensure that you have taken your inflated costs for financial objectives into account and the years that it will require to achieve the same. For instance, let us assume that you will need Rs. 25 lakh for your child’s education after a period of two decades or 20 years. Yet, after this period, the cost may have gone up to Rs. 40 lakh for this purpose.

Investing Rs. 3,000 every month for 30 years as a SIP investment, will help you amass a maturity amount which exceeds Rs. 1 crore. You can always use an online SIP calculator for finding out the amount that you should invest for achieving this figure. You can also change the duration or length of time accordingly. You should choose to deploy investments in equity mutual funds since equities have long-term growth potential while delivering inflation-adjusted returns as well. You should start SIPs in 2-3 mutual fund plans or schemes. Ensure that these are diversified throughout business sectors, stocks, market capitalization levels and have outperformed benchmarks consistently over a longer duration. If you have not started savings for long-term financial objectives, get started right away. The more you put this off, the more you will need to invest later on. The earlier you start, the more you will benefit from the power of compounding.

Many individuals want to start investments when they have a big sum of money. However, investing a lump sum is a riskier proposition. It is always recommended that beginners and newcomers invest smaller amounts via SIPs regularly. Investing in an equity mutual fund plan through SIPs is a great way to accomplish long-term financial goals and objectives. Equity always has ample potential for offering stellar returns as compared to other classes of assets. This may also help in combating inflation which is vital for the achievement of objectives in the long haul. They also enjoy better taxation likewise. Long-term capital gains taxes on investments held for more than a year are free from taxes currently.