Mutual Fund SIP: Contribute Rs 1,000 a month to increase your retirement capital to nearly Rs 3.5 crore; understand calculations

Mutual Fund SIP: Investors opened a record 6.4 million SIP accounts in spite of an increase in market volatility, and mutual fund (MF) gross inflows via SIP topped Rs 20,000 crore for the first time in a calendar month. Account openings in April of last month were almost 50% more than those in March.

Mutual Fund SIP:

Unlike lump sum contributions, mutual fund investments can be made through a Systematic Investment Plan (SIP). SIPs, or systematic installment plans, are a popular choice because not everyone can invest in mutual funds with a single payment or total amount. SIP investing enables investors to put up a specific amount of money. each month. With as little as Rs 100 each month, one can begin a SIP.

For the first time in a calendar month, mutual fund (MF) gross inflows via SIP exceeded Rs 20,000 crore, as investors opened a record 6.4 million SIP accounts in spite of an increase in market volatility. Account openings in April of last month were almost 50% more than those in March.
In approximately 18 months, the monthly SIP contribution has grown from Rs 10,000 crore in September 2022 to Rs 20,000 crore.

How SIP functions

Through a SIP, a predetermined amount of money is routinely (monthly, quarterly, etc.) withdrew from an investor’s bank account and invested in the mutual fund of their choice. The quantity of units you buy is based on the Net Asset Value (NAV) of the mutual fund at the time of acquisition. More units are issued when NAVs are low, and fewer units are released when NAVs are high. The rupee cost averaging strategy can help lessen the effects of market volatility.

KYC for Mutual Funds

A new KYC regulation was just put into effect. Investors in mutual funds will need to verify their know-your-customer (KYC) status as of April 1, 2024. The new regulations require that KYC be completed using PAN and Aadhaar. The MF investor’s KYC status will be validated if he completed the process with both a PAN and an Aadhaar card. All mutual funds are only accessible to investors who have been authenticated. Read more

SIP computation to amass Rs 3.5 corpus

Let’s say you begin investing when you begin working at the age of twenty. To secure their future, anyone should not find it difficult to invest Rs 1,000 a month.
Thus, you can become a crorepati at the age of 60 if you invest Rs 1,000 in an MF SIP and receive a 12% return. A Rs 1,000 SIP could yield Rs 1,14,00,000 at a 12% rate of return. This illustrates how compounding works.

Now, over the course of 40 years, this SIP can create a corpus of Rs 3.5 crore if you increase the amount by 10% annually as your salary increases with each passing year.

Account opning link:

1. Groww Account- https://app.groww.in/v3cO/kyrp1zph
2. Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906