Investment in SIP: How much money will you make in 48 months with a monthly SIP of ₹1800? Complete calculation in simple language
Nowadays, everyone wants to build a good fund for the future with a small amount of money. But investing a large sum at once is not possible for everyone. In such a situation, SIP (Systematic Investment Plan) has emerged as the easiest and most reliable method for common people.
What is SIP investment? (Simple Explanation)
SIP stands for Systematic Investment Plan.
It means investing a fixed amount in a mutual fund every month.
Key features of SIP:
No need to invest a large sum at once
Better for salaried individuals and small investors
Less impact of market fluctuations
Benefit of compounding in the long term
This is why SIP is considered the best way to build a large fund from small savings today.
How does a monthly SIP of ₹1800 work?
If you invest ₹1800 every month and continue it for 48 months, then:
Monthly SIP: ₹1800
Total duration: 48 months
Total invested amount:
₹1800 × 48 = ₹86,400
This is the amount you invest from your own pocket. The real magic happens with the returns you get on top of this.SIP calculation for 48 months at 15% annual return
Let's now address the most crucial query: what will be your return? Here's what may happen after four years if your SIP yields an average yearly return of 15%:
₹86,400 was the total investment.
₹32,000 to ₹34,000 is the estimated return.
The total fund value is between ₹1,18,000 and ₹1,20,000.
This suggests that with a monthly SIP of just ₹1800, you may build up a corpus of more than ₹1 lakh in four years.
| Details | Amount |
|---|---|
| Monthly Investment | ₹1,800 |
| Total Duration | 48 months |
| Total Invested Amount | ₹86,400 |
| Estimated Returns | ₹32,000 – ₹34,000 |
| Total Value After 48 Months | ₹1,18,000 – ₹1,20,000 |
👉Note: This return is estimated. Actual returns depend on market conditions.
What is it that we can learn about this SIP investment?
Through regular investments, even small amounts can grow exponentially.
Persistence and patience is required with SIPs.
Stopping to invest in the middle may be detrimental.
The longer the time spent the higher the returns.
Provided that you keep doing this small SIP over an extended period of time, it could possibly grow to thousands of rupees.
Expert Advice
If you are between 20 and 35 years old, this is the perfect time to start an SIP.
A small SIP started today can lay the foundation for your financial freedom in the future.
Frequently Asked Questions (FAQs)
Should I stop my SIP when the market goes down?
No, you should not stop your SIP during a market decline. When the market falls, you get more units at lower prices, which can help generate better returns in the long run.
Is a 15% return guaranteed in SIP investments?
No, SIP returns are not guaranteed. The returns depend on market conditions and the performance of the mutual fund scheme.
Will I face losses if I stop my SIP midway?
Stopping a SIP midway reduces the benefit of compounding and may result in lower overall returns compared to continuing the investment.
Disclaimer
The sole objective of this article is to provide information. Investments in mutual funds and SIPs are vulnerable to market risks. Learn about your requirements, objectives, and risk tolerance before making an investment, or speak with a financial professional.
