What is SIP ?
SIP(Systematic Investment Plan) is one type of investment plan where any one can invest their money monthly or yearly or in Lumpsum Method in Banks or any Stocks or in any Mutual Fund or in Indexes.
What is LUMPSUM ?
LUMPSUM is like Fixed Deposit where you invest your money one time and the money will grow time by time.
How it works?
If you start the monthly deposit in bank then the interest is very low i.e near about 6% which takes much much time to take you to your milestone.
Otherwise if you start Systematic Investment Plan in any stocks or Mutual Fund then the chances of you to reach your milestone is easy.
Lets take a look how it work
Stocks or Mutual Funds are nor stable sometimes it goes up sometimes it goes down. If you start SIP at any time in the long period of time the investment will start averaging, that gives you chances to win.
Next big factor in the power of compounding, in the long period time weather the market goes up or down your money will increases at a period of time.
SIP is a monthly plan where you invest your money every month that make your habit to start savings and to be stick and disciplined to that.
Key Assumptions
- You’re investing for 30 years.
- Average mutual fund return is around 12% p.a.
- Staying consistent and patient is important.
Power of SIP
One can see the result of SIP in very long term like 30-40 years but in short term SIP will not work to make you a Crorepati because thats the power of compounding. Lets see the power of Compounding below 👇
If you save just Rs 100 per day that mean Rs 3000 per month and lets assume an average return of 12% So after 31 years, You simply become a Crorepati. You can see power of SIP in a long period of time.
Suppose you hold that SIP for 40 years, so now you have a corpus of almost Rs 3 Crore.
But if in case you know some basics of Stock Market you can easily makes a return of 15% then at 40 years your Rs 100 per day SIP will give you a corpus of near about Rs 7 Crore.
Tips for SIP Succes
- If you want to be successful you have to start that plan very early. As long as you hold your SIP your corpus will become compounding.
- You have to invest even if there is market crash, you have to reduce your fear and Don’t stop SIP.
- If you can, you can add an annual step-up to your SIP, by doing that you will reach your milestone early.
- The most important thing you have to remember, don’t stop your SIP for any short term fear.
Conclusion
Saving ₹100 a day might seem small, but when invested wisely through SIPs, it can grow into ₹1 crore or more over time. The key lies in consistency, patience, and the magic of compounding. You don’t need to be rich to invest—just disciplined. Start today, and let your small steps lead to big wealth in the future. Remember, every rupee counts when you give it time to grow.
If you want to check or calculate the corpus You can use GROW SIP CALCULATOR OR ANGEL ONE SIP CALCULATOR.
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