Just ₹50 daily SIP in mutual funds: Build over ₹20 lakh in 25 years; how small savings grow your money over 5 to 25 yrs
You don’t necessarily need a large monthly surplus to start investing. Even setting aside ₹50 a day could help you build a mutual fund corpus over the long term. The key is to make investing a regular habit and give your money enough time to grow.
Consider investing ₹50 a day, equivalent to approximately ₹1,500 a month, through a mutual fund SIP. Assuming an annualised return of 10% from an equity fund, here’s how your investment could grow over different periods.
Why does staying invested for longer matter?
The difference becomes more noticeable as the investment period increases. While your daily contribution remains unchanged, the potential gains increase as returns accumulate on both your original investment and the returns earned over previous years.
For instance, extending the investment period from 15 to 25 years means contributing an additional ₹1,82,000. However, the estimated corpus could increase from ₹6,35,000 to ₹20,41,000, a jump of ₹14,06,000. This shows how time and compounding can influence long-term wealth creation.
A small daily investment can make a difference when given enough time to grow. While a ₹50 SIP may appear modest, staying invested for the long term allows compounding to work on accumulated returns. However, actual returns are market-linked and may vary depending on the mutual fund scheme and market conditions.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
