SIP Update: You will not have to ask anyone for money in old age, ₹3,55,33,879 will be added with just ₹2000 SIP...

It is wise to start retirement planning from the beginning while working in a private job. In this way, you get a good amount of time to invest and you can easily fill your treasury for old age. In today's time, there are many schemes in which you get the benefit of compounding. In such a situation, the longer you invest, the more money you can accumulate.

Mutual Fund SIP is one of those schemes. Despite being market-linked, this scheme has become quite popular. The risk in this is somewhat less as compared to investing money directly in stocks. Also, in the long run, the benefit of rupee cost averaging is available. The average return of SIP is considered to be 12 percent. In such a situation, with the help of this scheme, the wealth creation of investors happens rapidly. If you want, you can accumulate crores of rupees by starting with just Rs 2000 through SIP.

Know what to do
If you are investing in SIP, then you have to start investing in it along with the job. Suppose you start investing at the age of 25, then you will get 35 years to prepare a retirement fund because you will invest till the age of 60. Apart from this, one thing you have to do to make money fast is that you have to put a top-up of 10 percent on the investment amount every year. For example, if you start investing with Rs 2000 at the age of 25, then you have to deposit Rs 2000 for one year and increase the amount by 10% in the next year. In this way, as your salary increases year after year, you have to increase the amount invested by 10 percent every year.

Understand with an example
Suppose you start a SIP of Rs 2000 at the age of 25. After starting, you have to deposit only Rs 2,000 in this account for a whole year. Next year, you have to increase it by 10 percent of Rs 2,000, i.e. Rs 200. In this way, next year this SIP will be Rs 2,200. Next year you have to increase it by Rs 220 as per 10 percent of 2,200, in this way, your SIP will start going to Rs 2,420. In this way, every year you have to increase the amount by 10 percent of the existing amount and do this continuously for 60 years.

This is how ₹3,55,33,879 will be added
If you invest for 35 years by applying an annual top-up of 10 percent in the SIP starting with Rs 2000, then your total investment will be Rs 65,04,585. If we consider the average return of 12 percent, then you will get Rs 2,90,29,294 only from interest. After 35 years, you will have a total of Rs 3,55,33,879 after combining the invested amount and interest. On the other hand, if you get 15 percent interest on this investment, then the profit will be almost double and you will have a total of Rs 6,70,24,212.

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