Mutual Fund Investment: Seeing the current rising inflation, a large number of people have turned to investments as a basis for future money. In addition, the number of investors investing money in mutual funds rather than banks, post offices or credit institutions has increased to a large extent. The main reason for this is that mutual funds provide many benefits that you do not get in any other safe plan. While investing in mutual funds you can invest in mutual funds both through SIP and lump sum. But the question is, which plan will benefit you more? So let’s understand this in simple terms.
Lumpsum means you can invest in mutual funds in a lump sum i.e. Lumpsum method. Lumpsum means you invest in a lump sum fund. And SIP means you can invest in any fund in installments. Often people choose SIP because it does not cost a lot of money. You can save a little from your daily expenses and income and invest a certain amount every month in this fund. Mutual Fund Investment
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Now the question is, which option will provide the most benefit? So let’s take an example to understand this. First let’s talk about SIP. If you invest Rs 5000 per month for 10 consecutive years and get an average annual return of 12%, you can get Rs 11,20,179 after 10 years. Meanwhile, your original investment will be Rs 6 lakh and you will get a profit of Rs 5,20,179.
Now let’s say a person pays ₹ 6 lakh in lump sum for 10 years straight away, they will get a total of ₹ 18,63,508 at 12% interest. That means you will get an interest of Rs 12,63,509 on an investment of just 6 lakhs. So if possible, if there is a lump sum, the same investment (Mutual Fund Investment) will be beneficial. But if you don’t have a lot of money then SIP may be the best option for you.
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