Adopt this secret formula in SIP Investment, you will get funds worth more than one crore only on these small investments.

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SIP Investment: In today’s rising inflation, it has become very difficult to save money from earnings. In such a situation, people are not shying away from taking risks to increase their savings. Due to this, the craze for SIP in mutual funds has increased tremendously. According to the Association of Mutual Funds in India (AMFI), investments worth Rs 17,073 crore have come through SIP in November. Whereas, investment of Rs 16,928 crore came in the month of October. However, there has been a decline in investment in equity mutual funds this month. Systematic Investment Plan Investing in mutual funds is a long term investment plan. In this you can do it every week, every month or daily. Long term investors also get the benefit of compounding in SIP. A chop up facility is also provided in SIP investments. For example, if you add a fixed amount once a year in a monthly SIP, its corpus can double. You get to see its benefits when the fund matures.

What is TOP-UP SIP Calculation?

The mathematics of TOP-UP SIP is quite easy to understand. For example, you have taken a monthly SIP plan of Rs 10,000. Now the ratio in which your salary is increasing every year. You can TOP-UP your amount in that ratio. Understand its calculation like this. In regular SIP, you invest Rs 10,000 every month for 20 years. During this time period you invested around Rs 24 lakh. It gives an estimated return of 12 percent. SIP value on maturity will be around Rs 1 crore. In this, your expected profit will be Rs 75.91 lakh. Whereas, TOP-UP SIP can give you almost double the benefit. For example, you are doing SIP of Rs 10,000 every month for 20 years. The estimated profit on this was 12 percent. In this you kept a top up of 10 percent in one year. Accordingly, the total investment increased to Rs 68.73 lakh. After 20 years the SIP value will be around Rs 2 crore. In this your estimated profit will be Rs 1.30 crore.

what is mutual fund

Mutual fund is a type of investment system in which the money of different investors is pooled together and invested in different types of investments. Mutual fund companies manage investment portfolios for investors and provide a variety of disinvestment options for them.

Following are some of the main features of mutual funds:

• Professional Management: Mutual fund companies provide professional investment portfolio management for investors. They have specialized knowledge and experience that helps them improve their investments.

• Judicious selection of investments: Mutual fund companies exercise caution in selecting various investments so that investors’ money can be kept safe and normal profits can be obtained.

• Disinvestment facility for investors: Investors in mutual funds can divide their investments into different types of disinvestment options, such as shares, bonds, mutual funds, gold schemes, etc. This gives them the facility to take advantage of various means of investment.

• Liquidity and utility: Mutual fund companies provide investors with the facility to easily withdraw money from their investments, thereby maintaining their liquidity.

• Investor Security: Mutual fund companies manage investors’ money, which means that along with disinvestment, their security is also a priority.

What is systematic investment plan

Systematic Investment Plan (SIP) is an investment method in which investors invest a fixed amount at regular intervals, usually every month. It is a financial plan that provides individuals with a stable and efficient method to invest.

The main features of SIP are as follows:

• Regular investment: In SIP, investors invest a fixed amount at regular intervals, usually in the middle of a month.

• Accessible to common people: SIP removes financial controversy and gives individuals the opportunity to invest easily.

• Importance of time in statistics: Through this, individuals benefit as they receive returns at a fair rate over time.

• Financial Benefits: Through SIP, individuals get the opportunity to invest in various financial instruments, such as mutual funds, index funds, etc.

• Low initial investment: The initial investment in SIP is usually low, making this investment feasible even for individuals who cannot afford a large sum.

• Long Term Investment: Through SIP, individuals get the opportunity to invest for a longer period, which can increase the benefits of financial plans.

• Automated Investment: Simplifies and automates the investment process by automatically deducting the investment amount from the individual’s bank account.

,Disclaimer: The information provided here is being given for information only. Consult your advisor before taking any investment decision.,

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