Become a crorepati by investing Rs 2,500 per month.
A systematic investment plan (SIP) requires a fixed amount to be invested in the selected Mutual Fund(MF) scheme. Some MF houses allow SIP of as low as Rs 100, while most allow Rs 500 to be the minimum SIP amount.
While a regular SIP requires a fixed amount, in a Step-Up SIP or an increasing SIP, one may increase the SIP amount by a fixed amount or a fixed percentage every year.
In a regular SIP, by investing Rs 2,500 a month for 25 years at an assumed annualised growth rate of about 12 per cent, the maturity amount comes to about Rs 47.50 lakh. The total investment in terms of principal invested is Rs 7.5 lakh, while the gains are nearly Rs 40 lakh.