Investors should consider SIPs in investments for the long term to get the required compounding effect for maximum wealth creation. This will also reduce your risk in investment. There are many schemes in mutual fund categories where your investment may grow approximately by more than 15% in a period of 15 to 20 years. So, if you have started a SIP of Rs. 15,000 in a particular scheme for a period of 15 years, your wealth could potentially go up to Rs. 1 crore; however, if you invest the same amount for 20 years, your wealth could go up to more than Rs. 2 Crore.
Nowadays, SIP is a very popular wealth creation tool. And yet, many people continue to remain unaware of how and where to invest every month in SIPs. In today’s scenario, it is advisable for all of us to invest at least 20% of our monthly income into SIPs. There’s no doubt that investing in SIPs for long-term value creation can help us meet our long-term life goals such as children’s education, retirement, dream home, world tour, and marriage. By providing you with the compounding effect on your investment, SIPs also enable you to create long-term wealth for you to lead a comfortable life.
Views are personal: The author, Manish C Vara is a Mutual Fund Distributor from Jaipur
Disclaimer: The views expressed are of the author and are personal. TAML may or may not subscribe to the same. The views expressed in this article / video are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any manner for the consequences of such action taken by you.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.