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Everyone wants to invest in mutual funds these days. The returns depend on the fluctuations of the stock market. Mutual funds typically offer a minimum estimated return of 12 to 14 percent. Today, using an SIP (Systematic Investment Plan) calculator, we will find out how long it will take to build a fund of ₹10 lakh with a monthly SIP of ₹4000.

Calculation:
Investment Amount: ₹4000 per month
Investment Return: 12 percent
If a person invests ₹4000 every month through an SIP, it will take 11 years to build a fund of ₹10 lakh, assuming a 12 percent return. In these 11 years, you could receive ₹10,98,000. However, this completely depends on the actual returns you receive. In these 11 years, you will have invested a principal amount of ₹5,28,000.

Can you invest with cash?
According to the rules, some people are exempt from certain regulations regarding mutual fund investments. This means that mutual funds can also be invested in through cash.

Who can invest with cash?
While generally, mutual funds cannot be invested in with cash, some people are exempt from this rule. According to the regulations:

Those who are not taxpayers and do not have PAN cards or bank accounts can invest in mutual funds through cash.

This includes farmers, small traders, business owners, laborers, etc.

The only condition is that a maximum of ₹50,000 can be invested in mutual funds through cash per financial year.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.