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Wednesday, October 27, 2021

Crorepati Calculator: You can become a millionaire by saving just Rs 334 every day, this is how SIP works

Through SIP, you can arrange a substantial amount at the time of your retirement. (Image- Pixabay)

SIP Calculator: Some investors are afraid of the volatility of the stock market and such investors invest through mutual funds. Systematic Investment Plan (SIP) is a special mutual fund through which you can build a large corpus in the long run by investing minimum capital on a regular basis. How capable the SIP is to meet the financial goals can be gauged from the fact that by investing just Rs 334 every day, you can become a millionaire. There are many such mutual fund schemes in which investments for 15 or 20 years have given returns of more than 12 percent.

Through SIP, you can arrange a substantial amount at the time of your retirement. In this, investment can be started in at least 500 rupees a month, that is, there is no need of big capital to start SIP. In such a situation, it is a better investment option for small investors.

What is the Fund of Funds, which investors should invest in FOF, what is its profit and loss

This is how you can become a millionaire in 20 years

daily savings; Rs 334
Monthly SIP: Rs 10,200
Estimated Return: 12%
Investment amount in 20 years: Rs 24,04,800
Total SIP value in 20 years: Rs 1,00,11,462
Profit: Rs 76,06,662

If you are going to invest in mutual funds for the first time, then do not make these mistakes even by mistake, otherwise money will be lost.

This is how online SIP calculator works

You can use an online SIP calculator to find out how much investment is required to achieve your financial goals in the long run. It is absolutely available and can be easily found on google. This calculator gives an estimate of the investment amount as per the expected returns. This M = P × ({[1 + i]n – 1} / i) × (1 + i). Works on the formula. In this, M is the maturity amount, P is the amount to be invested at regular intervals, n is the number of times to be invested and i is the periodic rate of interest.

For example, you want to invest Rs 1,000 every month for the next 12 months and the periodic rate of interest is 12 percent. To calculate M i.e. maturity amount, the values ​​P (1 thousand rupees), n (12 months) and i (periodic rate of return = 12%/12 = 1/100 = 0.01) have to be input in the formula. Under the calculation, the value of M is coming to Rs 12809. This means that if you do a SIP of Rs 1000 every month and you are getting 12 per cent return on it, then in a year your investment will increase to Rs 12809.

(Disclaimer : This information has been calculated from SIP calculator available online and returns may fluctuate. Here we are not giving investment advice. Market has its own risk, so consult your advisor at your level before investing. Please take advice.)

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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