Only 24 months, ₹ 12000 every month… Know how to create a fund of ₹ 3.25 lakh through SIP, complete details

Do you also save a little bit from your salary every month, but that money lying in your bank account does not grow? Do you also want to earn money from money, but feel scared by the very name of stock market?

If yes, then today we are going to tell you about the easiest and smartest way of investment, which is called SIP. And the best part? You do not have to invest lakhs of rupees at once, but save a little every month as per your pocket.

Let us understand in very simple language that if you do SIP of ₹ 12,000 every month for only 2 years (24 months), then how your money grows and how much you can get in the end.

What is this SIP after all? (Meaning of SIP)

The full name of SIP is – Systematic Investment Plan. Just think of it as a ‘smart piggy bank’. Just as you withdraw some money from your salary every month and put it in a piggy bank, similarly in SIP you put a fixed amount (say ₹ 12000) in a mutual fund every month. This money does not remain lying there, but keeps increasing gradually.

It is best for those who do not have much understanding of the market, because in this the risk is distributed automatically.

SIP of ₹12000, 24 months: How much did you lose out of your pocket?

First of all let’s see how much money you deposited in total.

• Monthly Installment: ₹12,000
• How long: 24 months (2 years)
• Total money out of your pocket: ₹12,000 x 24 = ₹2,88,000

You did not give this money all at once, but deposited it little by little, due to which there was no burden on you.

Now comes the real magic: How does money grow?

When you invest money in SIP, you get interest (return) on it. And this is not simple interest, but compound interest, which is also called the eighth wonder of the world. This means that you also get interest on interest.

So how much money will be made from SIP of ₹ 12000 in 2 years?

Come on, let’s do the math. Let’s assume you get an average return of 12% per annum on your investment (which is a general estimate).

You saw! You invested only ₹ 2.88 lakh, but in 2 years you made a direct profit of almost ₹ 37,000, without doing anything! This is much more than the money lying in your bank.

Why is even a short SIP of 2 years a profitable deal?

Often people think that the real fun of SIP is in 10-20 years. This is true, but even a short SIP of 2 years gives you two big benefits:

1. Habit of Saving: It inculcates in you a good habit of saving money and putting it to work.
2. Small goals accomplished: This fund of ₹ 3.25 lakh accumulated in 2 years can be very useful for any of your small goals, like buying a bike, going for a trip or in case of any emergency.

Then what are you waiting for? Give your small savings the power of SIP today and watch your money grow.