If you also think that it is necessary to invest millions to become a millionaire, then you will be surprised to know that a fund of crores can be prepared with only 5000 rupees a month investment.
For this, you just need discipline, patience and right strategy in investment. Because through SIP (Systematic Investment Plan), the investment made in mutual funds can create such a big fund over time, which can make you a millionaire.
You will get big benefit from small amount
SIP is the way of investing in mutual funds in which you invest a certain amount every month. This investment gradually increases and shows the magic of compounding over time. Compounding means that the interest that is received on your investment also becomes a part of the next time investment and also gets interest on it. In this way, the benefit from the solution in the long term increases.
Can millionaires be made from 5000 rupees a month?
If a person does SIP of Rs 5000 every month and he gets annual return from an average of 12%, then he can become a millionaire comfortably in 25 years. But for this, the most important investment should be continued for a long time and SIP should not be closed in between. At the same time, fear of the decline of the market can become a hindrance in achieving this goal.
How will your money increase? Know calculation
Suppose you invest 5000 rupees every month in SIP and increase 10% every year and you get an average 12% return, then a fund of ₹ 16.34 lakh will be prepared in 10 years. At the same time, a fund of ₹ 93.15 lakh will be made in 20 years and ₹ 1.96 crore will be ready in 25 years.
That is, by investing with a small amount of Rs 5000 every month, a good fund can be prepared with time and discipline. Although the fluctuations of the stock market affect the investment in mutual funds, but in the long term, investment in SIP usually gives good returns.