SIP-Systematic Investment Plan

WAY TO  INVEST-

  • Regular SIP Amount per month – 5000/-
  • Expected Rate of Return (p.a.) -12%
  • Investment Duration – 25.5 years
  • Your investment cost –15.6 Lac

The future value of your SIP investment is ₹1.00Cr

Start Crorepati SIP Today

Did You Know That SIP Of RS 5000/-

Can Actually Make You Crorepati.

SIP

    Investing Rs 5,000 in a monthly SIP

    The ideal strategy to attain your long-term objectives is to invest in an equity mutual fund scheme via a systematic investment plan (SIP). Equity has the ability to outperform other asset types in terms of returns. It may also assist you in beating inflation, which is necessary for achieving long-term objectives. They also get a break on taxes. Long-term capital gains on assets held for more than a year are now tax-free.

    Should You continue or stop your SIP?

    Compounded Annualised Growth Rate

    It can be observed from the above chart that every scheme, since its launch at Rs 10 NAV has been able to give better returns in due course of time.

    NAV Movement

    Of course, there might have been so many fluctuations in the NAV in these years which can be observed in the below-mentioned NAV performance graph.

    SBI Multi-Cap Fund

    SBI Multi-Cap Fund has been launched on the 14th of February 22. NFO is closing on 28th February 2022, It is an opportunity for investors.

    Recently the data published.

    in one of the new websites said that ‘New SIP growth falls 61% from April to December.’ What does it mean? Does it mean that investment through SIPs is no longer attractive? Does it mean that Investors are moving away from SIPs?

    There could be only two reasons for fall in Net SIP growth. Number of New SIP registration is slowing down and another reason may be that some investors are stopping their existing SIPs.

    Historically it is observed that people start SIPs when the past performance looks good. When market is in bull run people start an SIP expecting the similar return in future. But market can never go up in linear fashion. There are going to be ups and down. Volatility is the part of stock market. So when market corrects and return in portfolio is negative or not as per expectation people stops the SIP and book the loss.

    Remember! In long run correction is temporary and growth is permanent. But when you press the panic button and stop your SIP your temporary loss gets converted into permanent one.

    Creation of wealth through SIP requires two elements in place; first good financial advice and second discipline. Returns from SIP is never going to be proportional every year. There would be few volatile years before you create a wealth. Those are the years where Investors needs to stay disciplined and stay invested. In fact, if you want to become even smarter investor you need to increase your SIP amount or add more money in your existing SIP folios. That would help you to accumulate more units and when market recovers your portfolio would grow even faster.

    If you had started an SIP of Rs 10000/month in September 2010 in large cap fund (There were 43 Large Cap funds available), value of your investment of Rs 3,60,000 after three years would have been Rs 3,48,896. Many investors were in panic and stopping their SIPs due to this negative return. But those investors who continued their SIP for even one more year, the value of their investment or Rs 4,80,000 was Rs 6,99,858/- after fourth Year.

    Market is always going to test your patience. If you lose your patience, you shall not be able to create wealth. Remember what legendary Warren Buffett has said when you are losing your patience, “Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”

    Every year, the SIP amount is increased (Top Up SIP).

    Assume that you can raise your SIP allocation by 10% per year. So, in the first year, you’ll have a monthly SIP of Rs 5,000, in the second year, it’ll be Rs 5,500 (Rs 5,000 + 10% of Rs 5,000), in the third year, Rs 6,050 (Rs 5,500 + 10% of Rs 5,500), and so on.

    This will assist you in reaching your Rs 1 core corpus objective in 21 years. See the table below for further information.