Start investing from Rs 500 and get a return of over Rs 1 crore, find out how ...
By Lokmat English Desk | Published: June 3, 2021 01:28 PM2021-06-03T13:28:39+5:302021-06-03T13:28:39+5:30
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You do not have to spend a fortune to start an investment. If you invest a small amount on a regular basis every month, you can save a lot of money. If you are planning for a home, car, children's education, marriage or retirement, then you have to go through the investment path.
Many people say that after some time we will start investing but that time never comes for them. Because such people do not take investing seriously. There is a need to think seriously about investing as much as focusing on savings today. But where to invest, the question remains.
Nowadays, financial advisors advise investors to invest in mutual funds to get a good return on their investment. It is very easy to invest in mutual funds. People of any age can invest in SIP mutual fund. However, this goal can be easily achieved by investing at an early age.
Mutual fund investing has emerged as a viable option due to the steadily declining interest rates in bank accounts. SIPs in mutual funds can be started in three ways. The first option is through a mutual fund agent, the second option is by opening an online trending account from a broker. The third option is to invest in a mutual fund's direct fund. This can be done by visiting the mutual fund's website.
Systematic Investment Plan (SIP) is a method of investing in mutual funds. It is easy to get good returns by investing through this. Investments are made in any diversified mutual fund through SIP. You can start investing in a mutual fund with an amount of Rs.500 per month. This means that investing in a mutual fund does not require a large amount of money.
If you need a large amount of money, you have to keep investing every month. In addition, the amount of investment will have to be increased as the income increases. To give an example, if any 25 year old started investing in a mutual fund from Rs.500. So he should increase his investment by at least Rs.500 every six months. Therefore, after five years, i.e. at the age of 30, the investment amount will increase to Rs. 5,000. It is possible. This is because the salaries of employees increase every year. Not only that, but when you look at the returns in the first two years, your enthusiasm for investing will increase.
For example, if one invests Rs 5,000 per month in a mutual fund at the age of 30 for the next 30 years, he will get a meager return of Rs 1,76,49,569 at the age of 60. This estimate is based on an investment of Rs 5,000 per month at 12 per cent interest. If you get 15 per cent interest on it, then the total return will be 3 crore 50 lakh 49 thousand 103 rupees. Even if you get 10 per cent interest, an investment of Rs 5,000 will get a total return of Rs 1 crore 13 lakh 96 thousand 627 after 30 years.
However, some mutual funds did not get return as expected. Choosing a mutual fund is the most difficult task for small investors. This is because choosing the right fund requires careful study. Therefore, all aspects should be considered before investing in a mutual fund. Also, be sure to seek advice from someone familiar with the matter. This is because investing in mutual funds is based on the risks involved in market investing.
Mutual fund companies collect paychecks from investors. A large amount of it is then invested in the stock market. Mutual funds, in turn, charge investors. Mutual funds are a great option for people who do not know much about investing in the stock market. Mutual funds give you freedom of choice.
