Mutual Fund Helps You to Jump from Rs. 50 to Rs. 50,00,000!
Are you in a shadow of doubt that you have read the title correctly or not? Well, you must be because it is something unbelievable though true. Let’s know how it is possible to make a corpus of Rs.50 lakh from just Rs.50. But before that, let’s know about the worth of Rs.50 for an individual.
One spends it daily for some snacks while going home from the office, or spends it in a coffee shop, and sometimes people use it to buy unnecessary items which can be avoided. You will be shocked hearing that you can make the wealth of Rs.50 lakh by avoiding your unnecessary expenses and saving just Rs.50 a day.
If you are keen to make a big corpus, then you do not need to suffer the burden of investing a big chunk because we have made it easier for you. Just try to save Rs. 50 daily from your expenses and that’s it! You can save up to Rs. 1500 (50*30) per month which is enough to make tremendous corpus.
Saving Rs.50 on a daily basis makes Rs.18,000 (1500*12) in a year. And, to make a corpus of Rs.50 lakh, you need to do it for more than 277 years, which is just not possible. You must be wondering the appropriateness of the title now, right? Don’t worry; we have the explanation for it right here.
There is a way in which you can make a big amount of wealth by saving the same Rs.50 every day but in a shorter period of time. Invest your monthly saving of Rs. 1500 in a suitable mutual fund through Systematic Investment Plan (SIP), and in 30 years only you can create a corpus of more than Rs. 50 lakh. SIP investment helps you to build wealth with your small savings and allows you to achieve your financial goals more conveniently. It is because of some special features of SIP which make it one of the best investment plans.
Here are some of the best advantages of investing in mutual funds through SIP:
- Rupee-Cost Averaging : It is one of the very significant reasons for investing in a systematic investment plan. It allows the investors to balance different SIP purchases made every month. It means that the units purchased in any particular month at a higher price get adjusted with the low-priced units purchased during any down market scenario. It helps to reduce the average cost of buying each unit of mutual fund in the long-term period. So, if the investor stays invested for a long period of time, then he/she can fetch the best benefit of SIP and make millions to fulfil the future financial goals. Furthermore, a long-term investment approach allows beating frequent ups and downs of the market as well.
- Power of Compounding : This is one more amazing feature of SIP investment plan which allows your money to grow in multiples in a relatively shorter period. A monthly SIP of Rs. 1500 at an expected rate of 12.5% can grow up to Rs. 3.6 lakh in 10 years. But, if the same SIP is continued for more time then in next ten years it would grow up to Rs.16 lakh, and in further ten years up to Rs.60 lakh respectively. Isn’t it amazing? That is why people are now making more investments through SIP and gaining the benefits of the power of multiplying their money along with various safety features.
There are many other advantages which an investor can enjoy while investing through SIP and make one’s dream of building wealth come true. It provides the simplest and convenient way of building a corpus for an investor. Unlike the one who directly invests in the stock market, SIP investor does not need to be an expert in finance. A person with little knowledge can also make big monies from SIPs. There is only one mantra - “Stay Invested for a Longer Period” - which helps to achieve success in SIP investment.
If you too want to be a millionaire then without following this mantra, it would be hard to create wealth in mutual fund investment. So, without wasting more time make a start today to become rich tomorrow. Check out the best suitable mutual fund schemes at our portal - MySIPonline, and get started with just Rs. 50 a day.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?42214 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?43093 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take44173 min read Jan 01, 1970