Every individual's love for money is eternal since it helps a person overcome unexpected financial crisis. As a safe flight amid the COVID-19 pandemic judicious use of money or for that matter a bit of daily savings can help he/she overcome sudden financial woes. Over the years, Mutual Fund has become an integral tool to tide over financial issues. Thus investing in an equity mutual fund scheme via an SIP is the best way to achieve your long-term goals. If you are a new investor seeking to minimum investment then saving money via Systematic Investment Plan (SIP) is the best available option. In the last few years there have been many equity mutual funds that have given annualized rates of 20 per cent or more since its inception. So if you are willing to take a bit of risk then investing in mutual funds through Systematic Investment Plan (SIP) is the right way forward.
For instance, if a individual adds a total monthly SIP contribution of Rs, 3000 or manages to save Rs 100 on a daily basis with a annual percent return of 20 percent then in just 15 years you can have a saving of nearly 34 lakhs. In 15 years, you will invest a total of 5.40 lakh rupees, which will increase to 34 lakh rupees adding up with the interest. This means you will earn a total of Rs 28.60 lakh with relatively much ease. The risk in investing in mutual funds is slightly less. The biggest advantage of a mutual fund is that here your money is invested in different companies, for example your money is invested in different stocks and bonds. The advantage of this is that even if the money invested in a company suffers losses, then the profit made from the rest of the place can cover up for the same. There are mutual funds which give more than 20 per cent returns to investors in 15 to 20 years. Sundaram Midcap Fund has given returns of 25.64%, Aditya Birla Sun Life Equity Fund 18.80%,DSP World Gold Fund 20%, Nippon India US Equity Opportunities Fund 17% are some of the few.