Can you save and invest Rs 5000 per month ?
Start A SIP in Equity Mutual Funds. Over the years you can create significant wealth with the power of equity and compounding.
Here is how much your money can grow at the rate of ~15% per annum if you invest Rs 5000 per month.
- After Year 1: ~ Rs 69,000
- Year 3: ~Rs 2.4 lakhs
- Year 5: Rs 4.6 lakhs
- Year 10: ~ Rs 14 lakhs
- Year 20: ~ Rs 70 lakhs
- Year 30: ~ Rs 3 crores
The longer you invest for, the more your money grows.
However, unlike your life insurance policies or PPF, there are NO lockin periods for Mutual Funds – You are free to withdraw your money anytime you want.
And the best part – All the interest returns are TAX FREE
If you don’t invest it in Equity SIPs and instead put it in a Recurring Deposit or Public Provident Fund, your returns will be much lower as their returns are only about 7 – 8% per annum.
Here is a comparison of how much more, SIPs in Equity Mutual Funds can grow compared to RD / FDs and PPF.
While the difference is small in the initial years, the gap really widens over the long term – And if you don’t invest in Equity, you are basically leaving a lot of money on the table.
If you are a First Time Investor or have never invested in Equity Mutual Funds, we recommend starting small, investing for 6 months and seeing the results, and then increasing your investments accordingly.
At Finqa, we provide guidance on the best funds to start a SIP in, how to open an online investment account, and get you started. You also get ongoing advisory and support via phone, email or WhatsApp.