What is SIP?
SIP works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF.
Do you know what will be value of Rs. 1,000 per month @ 8% and 15%, if invested through SIP?
(FIgures in brackets is the amount invested) and next two figures are value of the invested amount at the end of the term if compounded @ 8%/15%.
After 5 yrs (60000)
73, 450/ 88,575
After 10 yrs (120000) 1,81,372/2,752,71
After 15 yrs (180000) 3,39,945/6,68,507
After 20 yrs (240000)
After 25 yrs (300000) 915287/3243,530
After 30 yrs (360000)
After 35 yrs (420000) 21,57,408 /1,46,77,180
This is power of Long Term Investment in Equity Market.
Earlier you start, more time you give it to grow.
Start your SIP now and take the first step towards wealth creation.
When the 2nd richest person (who started investing at the age of 11) in world tells he started investing in equities late then what are you waiting for, start today itself.