In Step Up SIP, you definitely increase the investment every year.
It can also be any percentage of the existing SIP.
The higher the step, the amount of your deposit and the returns will increase.
New Delhi. If you want to make a profit by investing money in the stock market through mutual funds, then it is understood that SIP, i.e. Systematic Investment Planning, is an easy and less complicated method. In this, you give your money little by little to a fund manager, over a long period of time, your given money multiplies along with the returns. Now another way to raise this money is also in front of investors. You can increase throughput by various percentages through Step SIP.
Let’s try to understand it in detail. Suppose you put Rs 20,000 into SIP every month. You got a 12% annual return on this. After 15 years, your total investment will be Rs 38,63,255. You will get a return of around Rs 61,55,333 on this. That is, after 15 years, with a monthly SIP of Rs 20,000, you will be able to raise funds around Rs 1.18 crore.
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What will Step Up SIP do?
In the SIP Step, you decide to increase a fixed amount each year. For example, you are making a SIP of 20,000 now and will increase it by 5% next year. You can increase it as much as you want. The higher the step, the more funds will be ready. Now let’s calculate these numbers with SIP intensified. Suppose you want to increase by 10% every year, then after 15 years, how much money will you raise with a monthly SIP of Rs 20,000? With Step Up, you would be investing a total of Rs 1,14,19,299 in 15 years. In this you will get a return of Rs 1,08,41,716. Overall, you will now have a fund of Rs 2,22,61,014.
Who should invest in Step SIP
If you have a regular source of income and can increase your investment by a few percent each year, then invest in Step Up SIP. It is not necessary that only people who are familiar with the world of mutual funds invest in it. A new person can also opt for Stepup SIP. You can invest in Step Up SIP through Groww, Zerodha or any other broker.
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Tags: earn money, investment and return, investment advice, tips to make money, Investment fund, SIP, Systematic Investment Plan (SIP)
FIRST POSTED: March 18, 2023, 2:59pm IST