What we call SIP is called Systematic Investment Plan. It is a mode in which we can invest in Mutual Funds similar to a Recurring Deposit (RD) in bank. Through SIP, we can auto-invest a fixed amount of money (say 500, 1000 or 5000) on fixed date every month. The money gets automatically deducted from our bank account and gets invested in the desired Mutual Fund scheme.
Systematic Investment Plan (SIP) is one of the best options for Beginners, since in an SIP you need not worry about the time the stock market is at. When the market rises, you get fewer units (lower price), while when the market falls, you get more units (lower price). This process is called Rupee Cost Averaging, which becomes an automatic counterbalance to the risk inherent in the market. To put it simply, SIP allows the disciplined creation of wealth without you having to keep a keen eye on the market every day. You can start your investment journey also with a mere investment of Rs. 500.
Most people think that to become rich or to accumulate large wealth, you should already be having lakhs of rupees. This is actually a myth. When it comes to wealth creation, it is not the money invested that matters but the Time Period and consistency invested that matter.
When you invest only ₹500 per month in each machine via SIPs, two powerful forces work for your benefit:
Power of Compounding (Byaj Par Byaj) : The meaning of compounding is that not only you get return on your principal amount, but you will also get returns on the returns. The first 3-5 years plan sounds less, but after 10, 15 or 20 years it becomes a snowball effect.
Step-up SIP Strategy: As your income rises, you can increase your SIP contribution by 10% every year(as increasing from ₹500 to ₹550 the following year). This simple lifestyle changes can help your final corpus more than double.
Over the long term, mein stock market mutual funds have provided around 12%-15% average return per annum which is far higher than the FD or Savings Account rate of return.
Let us try to understand the power of ₹ 500/- SIPs by doing a real mathematical calculation (average return 12% / year assumed):
10 Saalon Mein:
Your total investment is: ₹60,000
Estimated Return: ₹56,169
Total Corpus: ₹1.16 Lakhs
20 Saalon Mein (Compounding Ka Magic):
Your total investment: 1,20,000.
Estimated Return: ₹3,79,573
Total Corpus: ₹4.99 Lakhs
30 Saalon Mein (Real Wealth Generation):
Your total investment in Aapka: Rs. 1,80,000
You will kindly note that the present market value of your investment in Aapka is as under:
Estimated Return: ₹15,84,957
Grand Total Corpus: ₹17.65 Lakhs!
Sochiyejbare, in the last 30 years, if you have invested only 1.8 Lakhs Rs from your pocket, you are now sitting on a value of about 17.65 Lakhs Rs (Thanks to compounding).
Note: Agar aap isme har saal sirf10% kaStep-up (agile saal 550 baad 605) jodte hain, toh 30 saal baad yeh amount585 ke bajay40 Lakhs se bhi zyada ban sakta hai. Yahi hota hai chote amount me bada wealth banane ka asli jadoo.
If you are a new investor and would like to start a SIP of Rs. 500 today, then do the following:
Select Sahi App Aur Account: Open your free Demat/Mutual Fund Account on any SEBI-registered platform (e.g., Groww, Zerodha, Upstox, Paytm Money).
Choose Direct Mutual Fund Plan: Hamesha ‘Direct Plan’ tabhi Select karein (‘Regular Plan’ mat karein), kyunki direct plans me Koi distributor commission nahi milta hai and uss cases me AFAR bhot achche hai, joki 1-1.5% zyada return deta hai.
Beginners Ke Liye Best Fund Category:
Nifty 50 Index Funds (i.e. lowest risk): Invest in Yeh India‘s top 50 companies. Expense Ratio is very low and long-term growth is quite safe.
Flexi Cap Funds (Moderate Risk): Allow fund managers to invest in all types of companies – large, mid and small.
Pro-Tip: Always SIPs for long term (atleast 5 to 7 years). Don‘t be afraid of market ups and downs (volatility), consider dips as an opportunity to buy extra units. Consistency is the biggest key to success!
Comments
Post a Comment