Mutual Fund / Do you want 5 crore rupees in 25 years? Know how much SIP you will need

Mutual Fund: To meet future needs and big goals, many of us start investing in advance. Some save money for their children's education, some for their marriage or house-car. Many people also invest in savings for retirement. To achieve such long-term goals, SIP (Systematic Investment Plan) of Mutual Fund can prove to be a better investment option. Let us know how much SIP you will have to do every month to create a fund of Rs 5 crore in 25 years and what things should be kept in mind in this.

On what things does the return from SIP depend?

The return from SIP depends on four main things:

Time period: For how many years are you investing.

Target amount: What is your target amount, which you want to get in the future.

Monthly investment amount: How much money will you invest every month.

Return percentage: How much return are you getting.

The first three of these things are in your hands, but the return rate depends entirely on the stock market. However, investing for a longer period of time gives the benefit of compounding, which increases the returns.

How much SIP is required to achieve the target of Rs 5 crore in 25 years?

If you want to create a fund of Rs 5 crore in 25 years, then the SIP amount you need to invest every month depends on the return rate you expect. Let's see how much SIP you need to do at different return rates:

12 percent return: If you get an estimated return of 12 percent every year, then for Rs 5 crore you will have to do a SIP of about Rs 26,500 every month.

15 percent return: At an estimated return of 15 percent, you can create a fund of Rs 5 crore in 25 years with a SIP of just Rs 15,500 per month.

18 percent return: If you get an annual return of 18 percent, then a SIP of just Rs 8,600 per month will be sufficient for Rs 5 crore.

Things to keep in mind while doing SIP

SIP is definitely a good option for investment, but it is also important to keep some important things in mind:

Face the ups and downs: Returns in mutual funds are not stable, it keeps fluctuating according to the market. Therefore, it is beneficial to maintain investment for a long time.

Facility to increase the amount in SIP: With time, you can change the amount of SIP according to your capacity. In this way, you can increase your investment over time.

Long Term Capital Gains Tax: On investment in mutual funds, you also have to pay Long Term Capital Gains Tax, which is applicable on the profits received in SIP.

Conclusion: Make the goal easy with the right plan

Mutual fund SIP is a very effective option for long term investment. To take advantage of this, it is important that you invest regularly and the longer you invest, the more your fund will increase due to compounding. Make a systematic plan according to your capacity and needs and make your future big goals easy.