Mutual fund calculator: How to accumulate ₹5 crore with a monthly SIP of ₹5000 | Mint

A systematic investment plan (SIP) provided by mutual funds enables investors to contribute consistently and systematically to their financial objectives. By regularly making tiny, fixed-sum investments, investors can progressively accumulate wealth without requiring a sizable initial investment. Mutual funds offer a practical means of building a diverse portfolio by pooling funds to invest in various securities, including stocks, bonds, and other assets.

SIPs’ real strength is their capacity to use compounding, a wealth-building strategy that gradually increases returns. By buying more units when prices are low and fewer when they are high, rupee cost averaging also helps SIPs lessen the impact of market volatility. Furthermore, tools such as Top-up SIPs allow investors to make larger payments as their income grows.

In this article, we will explain how to accumulate ₹5 crore by investing ₹5,000 monthly through a Systematic Investment Plan (SIP), using a mutual fund calculator to help you understand the process better.

Mutual Fund SIP Calculator

Maintaining a 15% annual SIP step-up rate is crucial to reaching the intended financial objective. For instance, you could accumulate about ₹5.22 crore over 25 years if you start with a monthly SIP of about ₹5,000 and increase it by 15% annually, assuming a 15% annual return on your mutual fund investment. With the help of compound interest and the gradual growth of your payments, this technique increases your investment dramatically over time.

How does SIP operate, and what is it?

One way to invest in mutual funds is through Systematic Investment Plans, or SIPs. You can use SIP to invest a set amount of money in a mutual fund scheme on a daily, weekly, monthly, quarterly, or other regular basis. You commit to investing regularly over time when you use SIP, eliminating the need to time the market or determine whether to purchase or sell., using a mutual fund calculator to help you understand the process better.

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Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.