Do you also dream of becoming a millionaire? Are you also looking for a way to earn good returns? Then this news is for you. Nowadays mutual funds are becoming more and more popular. You can invest here through lump sum or monthly SIP.
In such a situation, if your goal is to build a fund of 1 crore, it is important for you to know a few things. Today, we will explain two methods to help you fund 1 crore. Let us explain the calculations for lump sum and SIP.
SIP vs Lumpsum: Who is Right?
Whenever you invest, you should always invest according to your needs. If you don’t have a lump sum, you can save a small amount every month and invest through SIP. However, if you have a lump sum and want to get maximum returns, you should invest in a lump sum, because unlike a SIP, a lump sum pays interest on the entire amount from day one.
Understand through calculations
When will you become a millionaire by paying a lump sum of 2 lakhs?
Investment Amount: 2 lakhs
Years invested: 35 years
Interest on Investment: 12%
Total compensation: 1,05,59,924
By doing this calculation, if you invest 2 lakh today and leave it, after 35 years you will have a fund of more than 1 crore. However, if you increase your unit investment, you can reach 1 crore funds much sooner.
When will a SIP of 10,000 make you a millionaire?
Investment Amount: 10,000 per month
Years invested: 21 years
Total investment in 21 years: 25,20,000
Interest on Investment: 12%
Total compensation: 1,04,30,067
This means if you invest 10,000 every month, you will have a fund of over 1 crore in 21 years. If you do a step-up SIP, you will have funds of over 1 crore before the age of 21.
What is good for you?
If you have a regular salary and want to invest regularly every month in a disciplined manner to achieve your goals faster, you can opt for SIP. However, if you suddenly get a lump sum (like a bonus or money from selling a property) and are willing to forget about it for the next 25-30 years, you can safely invest in a lump sum.
Comments are closed.