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It is said that a drop makes an ocean. This is also applicable in the case of investment. You may not invest a lot of money, but you must invest. If you start investing with just 500 rupees, you can accumulate a fund of 49 lakh rupees in the long term. All you have to do for this is disciplined investment for a long time and have some patience. This is the power of compounding, which can turn even a small amount into a big fortune. Let's understand how this miracle will happen.

It is possible to add a fund of 49 lakh rupees by investing just 500 rupees every month, only when you invest in a place whose returns have the potential to beat inflation. For this, SIP is considered a better option in today's time. Investment in mutual funds is done through SIP.

500 rupees is such a small amount that you can invest it even from the pocket money of children. To add 49 lakhs from 500 rupees, you will have to invest continuously for at least 40 years.

If you invest 500 rupees every month for 40 years continuously, then you will invest a total of 2,40,000 rupees in 40 years. You will not even understand when this investment will be done. The average return in SIP is considered to be 12%. At the rate of 12 percent, 46,56,536 rupees will be received only from interest. After 40 years, by adding the maturity amount and the invested amount, a total fund of 48,96,536 rupees i.e. about 49 lakhs will be ready.

If you want to add a big fund from SIP, then disciplined investment is necessary. Do not take a break or pause SIP in between. Maintain regular investment for a long time. It is very important to continue regular investment to create a big fund.

SIP is a market linked scheme and the market keeps fluctuating. Do not stop SIP out of fear of recession in the market. During market downturn, you get more units and later when the market rises, you get more returns from them, so continue your SIP continuously.

Not all funds in SIP are the same, so it is very important to choose the right fund according to your need. If you do not understand this, you can take the help of a financial advisor.

SIP is a market linked scheme, there is no guarantee of return in it. Here the calculation has been done on the basis of an average return of 12%. It is possible that you get 14 or 15 percent or even better return and you can create an even bigger fund by investing Rs 500. But if this return reduces to around 10 or 11 percent, then the profit may also reduce slightly.