Nowadays, everyone dreams of becoming a millionaire, but only a few investors can fulfill their vision. If you belong to a middle-class family, are employed, and want to become a millionaire in the future, this dream can come true through Systematic Investment Plan (SIP). Investing in mutual funds through SIP is considered the best investment vehicle today, as it offers market-linked returns and the benefit of compound interest.
The longer you invest in SIP, the better the returns. On average, SIP offers a return of 12 percent, which is much higher than any other scheme available today. By investing in SIPs for a long time, you can turn yourself into a millionaire. Let’s explore this in detail.
How many years will it take to become a millionaire by investing Rs 5000 per month? If you start a SIP of Rs 5000 today and continue it for 26 years at a 12 percent return, you will accumulate Rs 1,07,55,560. In this scenario, your total investment will be Rs 15,60,000.
If you increase your monthly investment to Rs 8000, you will need to invest for at least 22 years to become a millionaire. During this period, your total investment will be Rs 21,12,000, and you will accumulate Rs 1,03,67,167 at a 12 percent return.
For those who can invest Rs 10,000 per month, the dream of becoming a millionaire can be achieved even more quickly. By investing continuously for 20 years, you will invest a total of Rs 24,00,000 and accumulate a return of Rs 99,91,479 (around Rs 1 crore) at a 12 percent return. If you continue for 21 years, the returns will be Rs 1,13,86,742.
A special feature of SIP is its flexibility. You can increase or decrease your investment amount at any time. Financial expert Deepti Bhargava suggests investing a small amount every year for better returns, even if it’s just an additional Rs 500. As your income increases over time, this becomes an achievable goal. Additionally, if you receive higher returns, your money will grow even faster. Furthermore, you can stop your SIP midway if needed and resume it later.
Investing in SIP is a reliable and effective way to achieve your goal of becoming a millionaire. With its market-linked returns and the power of compound interest, SIP can change your financial destiny. Start investing in SIP today and watch your wealth grow over time.