Through SIP, investors can build a fund of ₹1 crore over the long term with an estimated return of 12-14% by making small daily savings in mutual funds.
Mutual Fund: SIP, or Systematic Investment Plan, has become the easiest and most popular way to invest in mutual funds. Millions of investors in India have joined mutual fund SIPs. There's often a misconception that significant capital is required for mutual fund investments, but the truth is that you can build a substantial fund even with small daily savings.
Building a Fund with Daily Savings of ₹50 to ₹500
You can start a monthly SIP with small daily savings of ₹50, ₹100, or ₹500. This offers the advantage of compounding and maintains liquidity – meaning you can stop the SIP or increase the investment amount as needed.
How to Build a ₹1 Crore Fund? Understanding Step-by-Step SIP Calculation (at 12% Estimated Return)
₹50 Daily Saving (₹1500/month)
If you save ₹50 daily and invest ₹1500 monthly through SIP, with an estimated return of 12%, you could build a fund of ₹1,04,09,777 in 37 years. Your total investment would be ₹6.66 lakhs.
₹100 Daily Saving (₹3000/month)
Daily savings of ₹100 translates to a ₹3000 monthly SIP. Assuming a 12% return, you could build a fund of ₹1,16,75,513 in 32 years. The total investment would be ₹11.52 lakhs.
₹500 Daily Saving (₹15000/month)
If you can save ₹500 daily, your monthly SIP becomes ₹15000. In this scenario, you could become a crorepati in just 18 years. After 18 years, you could have a fund of ₹1,06,75,929, with a total investment of ₹32.40 lakhs.
