Imagine you have a big dream to buy a super cool bicycle that costs Rs. 1 crore. But, you only get Rs. 100 as your weekly pocket money. It seems impossible, right? But there’s a way!
Let’s say you decide to save your pocket money every week and put it in a magical piggy bank. This piggy bank is special because it increases your money over time. This is similar to investing in a Systematic Investment Plan (SIP).
Now, if you want to buy your bicycle in 10 years, you would need to put in more than your weekly pocket money. You would need to save about Rs. 36,335 every month! That sounds like a lot, doesn’t it?
But don’t worry! If that’s too much, you can still reach your goal by being patient and giving yourself more time. If you start saving from today and continue for 30 years, you would only need to save Rs. 1,444 every month to reach your goal of Rs. 1 crore.
So, even if your dream seems big and far away right now, remember that with patience, regular saving, and the magic of SIP, you can reach it one day!
To accumulate Rs. 1 crore in 10 years through a Systematic Investment Plan (SIP), you would need to invest approximately Rs. 36,335 per month, assuming that the SIP is on a diversified equity giving 15% over 10 years1.
However, it’s important to note that Rs. 36,335 per month is a significant investment and may not be feasible for everyone1. If you find it challenging to set aside this amount every month, you could consider extending the investment period. For instance, if you start at the age of 25 and give yourself 30 years to invest, then you just need a SIP of Rs. 1,444 per month to reach a target corpus of Rs. 1 crore1.
Remember, the power of SIP lies in regularity and time. The longer you stay invested, the more potential your money has to grow