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Sip investment: Do you think it is impossible to become a millionaire with small investment? So, think once again! If you invest only Rs 5,000 every month, you can deposit a fund of Rs 3.5 crore till your retirement through a Systematic Investment Plan (SIP).

SIP is an investment device that can give you big advantages in long periods through short but continuous investment. It gives you the benefit of low risk, discipline, and compounding, which makes you likely to get better returns on your investment.

How to make Crorepati from investment in SIP?

If you start SIP at the age of 30 and invest Rs 5,000 every month till retirement (60 years), then your total investment will be Rs 18 lakh in 30 years. Now think, how much return you will get from this investment?

Assuming an average annual return 15%, this investment in 30 years will make you a fund of about Rs 3.5 crore. This is just an example, but if you invest for a long time, the magic of compounding can give you extraordinary advantages.

Why is SIP a sensible investment option?

SIP has many advantages, the biggest advantage of which is cost average. When you make small investments regularly, you are able to reduce the impact of market fluctuations. In addition, you can get very good returns in a long time through compounding (in which the return on the investment already works on the next investment).

Keep these things in mind while investing in SIP

1. Fund track record: Before starting the SIP, see how the mutual funds you are going to invest in the last 5, 10, or 15 years in which you are going to invest. This will give you an idea of the performance of the fund.
2. Fund manager’s reliability: Fund manager’s experience and performance are important. This ensures that your investment is in the right hands and going in the right direction.
3. Possibility of future returns: Although, Mutual fund The return is not fixed in the future, as it is associated with market fluctuations. Many funds in India have given more than 15% returns in the last 10-20 years, but what will happen in the coming years is difficult to say.
4. Benefits of Investment in the long term: SIP is a long -term investment, and the more time you invest, the lower risk and the possibility of more returns. If you invest for a long time, then Return may also increase,

SIP is a great way to get economic freedom, especially for those who want to start with low investment. If you invest it correctly and continuously, it can become a strong financial fund for you after retirement. But remember, this is only information, and must consult your financial advisor before taking all the decisions to investment.

Disclaimer: This article has been written only for the purpose of information. It is necessary to consult a financial advisor before any decision - decision.