Mutual Fund SIP vs Lumpsum: Investment option in mutual fund SIP is becoming very famous among Indian investors today. A large corpus can be created by investing small amounts over a long period of time in SIP. SIP is known as an investment option giving good returns.
By investing in this, you can get 12 percent or more returns annually. Investment in SIP is done in two ways. One is monthly and the other is lumpsum i.e. lump sum investment. Many investors have a question in their mind that among these two investment options, where can they get more returns? Come, let us get information about this topic…
Lump sum SIP return of Rs 12 lakh after 10 years
If you invest Rs 12 lakh in SIP for 10 years, and get an annual return of 12 percent during this period, then after the completion of the period, your investment will increase to about Rs 37.27 lakh. That means overall you will get a profit of around Rs 25.27 lakh.
Monthly SIP of Rs 10,000
If an investor starts a SIP of Rs 10,000 every month and continues it for 10 years, then the total investment in 10 years will be Rs 12 lakh. At the rate of 12 percent annual return, this amount can increase to approximately Rs 22.40 lakh. That means there will be a profit of around Rs 10.40 lakh.
Which one got more returns?
Investors got higher returns in lump sum as compared to monthly investments. Behind which compounding has to happen. On lumpsum investment, the benefit of compounding is available from the beginning and the returns also increase.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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