SIP Investment: How to create a fund of Rs 1 crore in 5, 10, 15 and 20 years? Know the right way to invest

Best SIP Investment Mutual Fund Plan: Nowadays, it is a big dream of every working person and middle class person in India to have a secure fund of at least Rs 1 crore for the future. This large amount is considered very important for children’s higher education, buying a new house, secure retirement and strong financial security in the future.

In the present times, this wonderful system of mutual funds has become the easiest and most reliable means to achieve this big financial target. But often many people remain confused as to how much money will have to be invested from their pocket every month to reach this magical figure of Rs 1 crore.

The biggest rule of investing in mutual funds is timing, so by starting to invest early, you get the best benefit of compounding, due to which even your small savings become big rapidly. If you start late, you will have to invest a huge amount every month which is a bit difficult for a common man.

Therefore, if you start early, even a monthly savings of just a few thousand rupees can easily make you a big millionaire in the future. Financial experts have prepared this wonderful roadmap of Rs 1 crore assuming an average annual return of 12 percent in long term equity mutual funds.

5 and 10 year investment plan

If you want to create a corpus of Rs 1 crore in just 5 years, you will have to make a huge investment of Rs 1,23,300 every month. During this entire period, you will get an average annual return of 12% on your investment, due to which the magic of compounding will work on your money very fast.

Whereas if you want to achieve this goal in 10 years, then you will have to deposit Rs 44,640 every month which is comparatively less. Only by maintaining consistency in investment, you can easily achieve this big and ambitious financial goal within the stipulated time.

15 and 20 year safe option

As the tenure increases, the burden of your monthly installment reduces significantly which is very convenient and easy for the budget of a common man. If you aim to create a corpus of Rs 1 crore in 15 years, you will have to invest Rs 21,020 every month consistently for a 12% annual return.

On the other hand, if you invest disciplinedly and continuously for 20 years, then your monthly installment will reduce to just Rs 10,880. Due to the great benefit of compounding in the long run, even your small monthly savings can easily create a very big and strong fund in the future.

A great way to step-up SIP

If your initial income is low and you are not able to save Rs 10 or 15 thousand every month, then you do not need to be disappointed at all. You can choose the best option of Step-up SIP, under which you increase the SIP amount by 5% or 10% every year as your income increases.

By doing this, you can easily achieve your financial goal by increasing your investment according to your income and capacity. This method is best for those youth who have just got a new job and have full hope of increasing their salary in future.

Also read: EPFO ​​New Rule: PF deducted from your salary has changed, now the new rule is ₹ 1,800; Withdrawal of money also became easier

Start investing with small amount

Through this amazing and flexible plan, you can start with a very small amount like ₹ 5,000 and achieve the target of ₹ 1 crore before the stipulated time. The younger you start your investment, the faster the power of compounding will grow your money and give you financial freedom.

This is a safe path that always gives investors a good and strong profit in the long run despite market fluctuations. Therefore, for your safe, happy and golden future, you must start making a correct and accurate investment plan from today itself.