How to invest in sip mutual funds – Often you have heard that nowadays the highest returns are getting in mutual funds and if you want to invest money, then invest them in SIP. In such a situation, the question arises that what is SIP? Surprisingly, even today, most people are not aware of this investment option and consider investing in traditional options only. However, traditional investment options are not getting as good returns as many mutual funds are offering at the moment. So how to invest in mutual funds or SIP, you will be given full information here.
First of all, know what is SIP
SIP is a systematic investment plan through which investments are made in mutual funds. This SIP is opened in mutual funds under which money is invested for a fixed time.
These are the big advantages of SIP
- The biggest advantage of SIP is that you do not have to start or invest with a lot of money. You can open this SIP with a nominal amount of Rs 500 a month.
- Apart from this, there is an advantage of SIP that you do not have to put lump sum money in it. You can save a little money every month by slowly and putting it in SIP.
- At the same time, you get complete information about your investment in SIP, how much is increasing in it year after year or month after month. According to the unit of your mutual fund, you can find out its value, how much return you are getting on the amount invested.
Investing in SIP for a long time gives excellent returns
In SIP, you are advised to invest money for a long time. You can get good returns by investing money for a long time.
How to invest in SIP
In SIP, you can choose to invest every month, three months, six months and throughout the year.
How to get good returns in SIP
Suppose you are investing one thousand rupees a month in SIP, then in 10 years, according to the 15% annual return, this amount will sit more than 2.5 lakh rupees. On the other hand, if you deposit Rs 1.20 lakh, you get 1.40 lakh rupees in the form of compound interest. At the same time, you can get 13.11 lakh rupees in 20 years. In this way, if you invest in SIP in 20 years instead of 10 years, you will get more returns.