How Much SIP Should You Make To Get ₹1 Cr In 10 Years Via Mutual Funds?
Investing in mutual funds through a systematic investment plan (SIP) can be a great way to achieve your financial goals. SIPs allow you to invest small amounts of money regularly in mutual funds over an extended period, providing you with a disciplined investment approach. In this blog, we will discuss how much SIP you should make to get ₹1 crore in 10 years via mutual funds and provide tips to help you achieve your financial goals.
How Much Sip Should You Make To Get ₹1 Crore In 10 Years?
To determine how much SIP, you should make to get ₹1 crore in 10 years, you need to consider several factors, such as the expected rate of return, the investment amount, and the investment duration. Assuming a return rate of 12% p.a., you would need to invest around ₹42,000 per month to accumulate ₹1 crore in 10 years via SIPs.
Here’s the math behind the calculation:
- Monthly investment: ₹42,000
- Investment duration: 10 years
- Expected rate of return: 12% p.a.
- Total investment amount: ₹50.4 lakhs
- Total corpus accumulated after 10 years: ₹1 crore
Note that the above calculation is only an approximation, and actual returns may vary depending on market conditions.
Tips For Achieving Your Financial Goals Via SIPs
It is worth noting that the returns of mutual funds are subject to market risks and may fluctuate over time. Therefore, choosing a fund that aligns with your investment goals and risk profile is essential. Additionally, it is advisable to diversify your investment portfolio by investing in different asset classes, such as equities, debt, and gold, among others.
In addition to choosing the right SIP option and diversifying your investment portfolio, there are some other things that you can do to maximize your returns and achieve your financial goals. Here are some tips that can help you make the most of your SIP to get 1 crore investments:
1. Start Early
The power of compounding can significantly impact your investments over time. Therefore, it’s crucial to start investing in SIPs as early as possible to achieve your long-term financial goals. Starting early means you have more time to accumulate wealth, and the power of compounding will work in your favour.
2. Define Your Investment Goals
Before choosing a SIP option, defining your investment goals and risk profile is essential. This will help you pick a SIP that aligns with your financial objectives and risk appetite. Define your short-term and long-term goals and choose a SIP to help you achieve them.
3. Diversify Your Investment Portfolio
Diversification is critical to managing risk and maximizing returns. Therefore, investing in a mix of equity and debt funds that align with your investment goals and risk profile is advisable. A diversified portfolio reduces the risk of losses due to market volatility and provides a more stable return on investment.
4. Choose a SIP Option With a Long-Term Perspective
Investing in SIPs with a long-term perspective can help you ride out market volatility and maximize mutual fund returns over time. Choosing a SIP with a long-term investment horizon is essential to help you achieve your financial goals.
5. Increase Your SIP Amount Regularly
As your income increases, you must increase your SIP amount regularly to meet your financial goals. Increasing your SIP amount ensures that you stay on track to achieve your financial objectives and that your investments keep up with inflation.
6. Invest in a Disciplined Manner
Investing in a disciplined manner is crucial for achieving your long-term financial goals. Therefore, it’s essential to stick to yoursystematic investment plan (SIP) investments, irrespective of the market conditions. A disciplined approach ensures you invest regularly and achieve your financial objectives over time.
Edelweiss Mutual Fund’s SIP options
Edelweiss Mutual Fund offers various SIP options, including the Edelweiss SIP, that can help you achieve your financial goals. With the Edelweiss SIP, you can invest a small amount and increase your investment over time to build a substantial corpus. Additionally, Edelweiss MFoffers expert fund managers to maximize mutual fund returns and achieve your financial goals.
Investing in mutual funds through SIPs is an excellent way to achieve your financial goals. However, it’s essential to choose the right SIP option, define your investment goals, and invest in a disciplined manner to maximize mutual fund returns and achieve your financial objectives.
Edelweiss Mutual Fund offers several SIP options, including the Edelweiss SIP, that can help you achieve your financial goals. The amount of SIP you should make to get ₹1 crore in 10 years depends on various factors such as the expected rate of return, the investment amount, and the investment duration.
However, by investing in SIPs through a disciplined approach, choosing the right SIP option, and diversifying your investment portfolio, you can maximize mutual fund returns and achieve your financial goals.