The Power of SIP Investment
Power of compounding
When you invest regularly for a long period of time the benefits are magnified, thanks to the compounding effect. Simply put, your money grows over time as the money you invest earns returns. And the returns also earn returns.
*Calculation is based on effect of compounding on monthly investments of Rs. 1000- Rs. 20,000 for a period of 20- 30 years in investments offering different rate of returns, i.e. 6% p.a., 10% p.a. and 15% p.a. A monthly investment of Rs. 1000 for 30 years in an investment offering 6% p.a. return can give you Rs. 10 lakhs vs. Rs. 70 lakhs an investment offering 15% p.a. return. Source: internal. Above is for illustrative purpose only. Investors should consult their financial advisers before taking any investment decision.
Power of starting early
By investing early, it would be easy to achieve your goal.
Corpus at 60 years of age
Started investing at 25 years of age
Started investing at 30 years of age
Investor X and Y invest Rs 1,000 a month until the age of 60 (assuming an interest rate of 10%)
*Calculation done on the assumption that one investor begins investing at 25 years of age and the other begins investing at 30 years of age. Then at the age of 60, the early investor would have a corpus of over Rs. 38 lakhs vs. a corpus of over Rs. 22 lakhs.
Calculation shows a difference of Rs. 16 lakhs at 60 years of age if one starts investing Rs. 1000 earlier by 5 years.
Power of disciplined investing
When investing in SIPs, you do not have to worry about timing the market. Regular investing will ensure that you are invested irrespective of the market highs or lows. This will help you make the best of an opportunity that would have been difficult for you to predict in advance.
Systematic Investing in Equity Mutual Funds
Equity market offers a great opportunity for long term wealth creation. Mutual funds give you access to an experienced fund manager’s expertise in identifying growth opportunities and taking investment decisions. Wealth creation comes with systematic investment over a long term. SIP in equity mutual funds
is an easy way to adopt discipline in investing, reduce volatility associated with equities and get long-term capital returns.
Moreover, the dividends
earned are tax free!
Not just that, if you stay invested for more than a year, then the capital gains
earned are also tax free!
Secret to Achieving Much More with SIP
List down your goals and how much you need to save in order to achieve them
Ascertain the monthly/quarterly SIP amount required to achieve your goals
Identify the scheme(s) in which you would like to invest and start
Investment Pro Tip
While saving for your child’s education, start early!
This will allow your money to grow over time and will allow you to gain from the power of compounding through market cycles
Diversify to increase the stability of your child’s education plans
Diversify your investments. This will help increase stability even in a volatile market and ensure that your child’s education plans are on track.
Systematic Investment Planner - SIP Calculator
Wondering how much you should start investing monthly to achieve your goal in time? Try out this tool and get your plan in place.
Tenure in which you would like to achieve your goal?
Drag to select the sum you would like to target?
Expected Rate of Return
Expected Rate of Return
Monthly Investment Amount
*The Calculators are designed to assist you in determining the appropriate amount. These Calculators alone are not sufficient and shouldn’t be used for the development or implementation of an investment strategy. There is no warranty about the accuracy of the calculators/ reckoners. The examples do not purport to represent the performance of any scheme or security or investment. The recipient is advised to consult his or her financial advisor prior to arriving at any investment decision.