How to invest money in SIP in India?
If you are searching for a low-risk investment method then you could come across mutual funds, SIP, etc. It is a smart way to grow your money in the long term. When coming to risk factors mutual fund is low risk when compared to direct investment in stocks and when coming to returns when there is high risk there are high returns, when there is low risk there are low returns.
Many people think that investing in the stock market is gambling as per their knowledge. The stock market is not gambling because it was involved by many big companies. We are consuming that companies products daily and behind that big giant's many lakhs of people working then how can you say that it is gambling.
What is SIP?
A systematic Investment plan is one of the best techniques to save money in banks or mutual funds on a monthly basis with a minimum amount. This is the most suited funding policy created especially for middle-class families. This is the most used funding policy in India.
Benefits of SIP
If you invest in SIP you can withdraw only at some intervals. There are schemes for one year, two years... based on the user's choice. While withdrawing you will get some amount as the interest added to your principal amount. The interest may vary from 4-10 % based on the policy you have chosen.
How much do you get benefits?
If you signed in a policy of 2-year scheme of principal amount 2000. Monthly you need to pay 350 rupees for 2 years at eng you can withdraw 10,000 but actually, you will be paid 8400. You can get a profit of rupees 1600.
When coming to returns in mutual funds the returns will be massive with the power of compounding. Do you know compounding is the eighth wonder of the world? For example, if you invest just RS.5000 per month for 30 years then your total investment amount will be RS.18 Lakhs and with a minimum of 15% returns with the compound effect, you will be getting RS.3.5 crores at the end so utilize this method and grow your money with low risk.
Top government SIP Policies
➤ SBI Bluechip Fund Equity Fund 0.95%
➤ SBI Magnum Balanced Fund Balanced Fund 17.27%
➤ SBI Magnum Gilt Short Term Debt Fund 9.38%
➤ SBI Small Cap Fun
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