SIP Mutual Funds: Can you become crorepati by investing just Rs 100 a day? It is possible, know how? (2024)

FAQs

SIP Mutual Funds: Can you become crorepati by investing just Rs 100 a day? It is possible, know how? ›

Though the returns may vary, if you invest money in a SIP mutual fund plan for long time, you can fulfill your dream of becoming a crorepati. Even if you save Rs 100 every day, you can make yourself a crorepati in a few years, which can help you meet many of your financial goals.

If you want to make money through SIP, then the long-term strategy is the best way. A good strategy is to save at least Rs 100 a day from your daily expenses and invest it in mutual funds through SIP.

Naveen Kukreja, Co-founder & CEO, Paisabazaar, says that assuming an annualised return of 12 per cent, one needs to invest Rs 1.20 lakh per month through the SIP route to get a Rs 1 crore corpus.

Starting SIPs in your 20s to the tune of ₹8,000 per month into quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass ₹5 crore by 60," said Ashish Aggarwal, Director, Acube Ventures.

Long-Term Wealth Creation: SIPs are designed for long-term wealth creation. By consistently investing over the years, you benefit from the power of compounding, which can lead to significant wealth accumulation.

If you were to invest Rs 1,000 per month into an equity SIP over a span of 30 years at 12 per cent per annum, you would have invested only Rs 3.6 lakhs. However, your portfolio's value would have grown to an impressive Rs 34.9 lakhs.

Yes, many SIPs have a low entry point, allowing investors to start with amounts as low as Rs. 1,000 per month, making it accessible for a wide range of investors. Is SIP 100% safe? While SIPs are relatively safer than some investment options, they are not completely risk-free.

If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.

If you invest in SIP by adopting the formula of 15X15X15, then at the rate of Rs 15,000 per month, you will invest a total of Rs 27,00,000 in 15 years. But if you get the interest on it at the rate of 15 per cent, then it will translate into Rs 74,52,946.

In the last 10 years, SIP investors in small-cap equity mutual funds got an average annual return of up to 23.15 per cent. Talking about the top two small-cap funds in the last 10 years, a monthly SIP investment of Rs 20,000 in one of them would have become more than Rs 1 crore.

Which SIP is most profitable? ›

How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.

You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.

Become a crorepati by saving Rs 100 daily

You invest this amount in SIP continuously for 30 years. According to the SIP calculator, you will invest only Rs 10,80,000 in 30 years, whereas at 12 per cent you will get Rs 95,09,741 as return. In such a situation, after 30 years, you will be the owner of Rs 1,05,89,741.

In the realm of financial planning and investment, there are two prominent options: Systematic Investment Plans (SIP) and Life Insurance Corporation (LIC) policies. Both have their merits, but when it comes to building wealth and securing your financial future, SIP often emerges as the preferred choice.

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

In India, the Securities and Exchange Board of India (SEBI) mandates that mutual funds offer a minimum investment amount of Rs. 100 for lump-sum investments and Rs. 500 for Systematic Investment Plans (SIPs). Some mutual funds may have a higher minimum investment amount.

A. Yes, you can also do a Daily SIP wherein investments in mutual funds will be made daily. Unlike a monthly SIP where investment is made every month, Daily SIP is deducted on working days of the month.