No matter how much money you have, investing should be easy and affordable. With our systematic investment facility you can invest as low as Rs. 500 per month and grow your wealth over time.
Whatever your dreams, realize them one step at a time
We all have various dreams that we want to realize – owning a car, a house or going on a vacation. Besides these, we also need to plan for our children’s education, their marriage and our own retirement. Achieving these dreams may seem like a difficult task, but with Systematic Investment Planning (SIP) it is possible to do so one ‘SIP’ at a time.
SIP or systematic investment planning is a method through which you can invest in any of our mutual fund, investment plan or pension scheme through small and periodic installments. In fact you can invest as low as Rs. 500 on a monthly basis and decide how you want to go about it.
- You decide on the amount you wish to invest regularly
- You decide how much money you wish to invest
- You decide for how long you want to continue investing
- You can change the payment schedule and investing amounts at your wish and convenience
- You don’t have to pay any charges or penalty if you miss an investment date
How SIP works?
Starting an SIP with any of our investment schemes is easy. Just follow the steps given below.
Step 1: Set a goal that you wish to achieve
The first step to achieving your dreams is to have a clearly defined goal or objective in mind. To achieve any goal you will have to save money for it on a regular basis. Also you need to know when you want to achieve this goal and how much money you would like to have at the time of it’s completion.
For example, your goal could be to ‘take a vacation in 5 years from today’, and to make this goal a reality, you may be requiring Rs. 500,000.
Step 2: Start SIP to meet this goal
Once you have identified your financial goal, the next step is to do Systematic Investment Planning so you know how you can achieve this goal. To do so you can use formula for SIPs return calculation.
A
= S*R*(R Power n -1)/(R-1)
In the above formula :-
A = maturity amount
S = SIP amount (plz. note in case of multiple monthly SIPs it`s advisable to clubbed all SIPs considering a big single SIP)
n = Time duration of SIPs
R = 1 + r/100 (where r is mly. rate of return)
Plz. note if the SIP frequency is qtly. adjust the rate of return to it`s frequency.
The above formula is some what complicated to calculate manually so it`s advisable to use EXL sheet.
This will tell you much money your regular investments can grow over time.
In this case, in order to achieve a target of Rs. 500,000 in 5 years for a vacation, you need to invest approximately Rs. 6,000 on a monthly basis in an investment solution that can give you a return of approximately 14% p.a. over a period of 5 years.