Are You Considering Saving for Your Child’s Education? Attempt the SIP Investment Plan
The Systematic Investment Plan (SIP) is a practical way to invest. Due to its ability to steadily grow a huge corpus of cash via tiny inputs, SIP was regarded by investors as one of the safest investment alternatives. It is a mechanism for investing that is available to investors, enabling them to automatically invest a little sum on a monthly basis.
Education costs have gone up recently. The greatest educational resources are usually sought for by parents for their kids. You might choose the SIP investing fund if you wish to safeguard your child’s future. You need to start saving early since the aim is long-term. According to experts, if you start investing Rs 5000 each month, you would have a wealth of about Rs 50 lakh after 20 years.
Since SIPs are long-term investment plans, you will also earn compound interest in addition to the typical 12% interest return offered by SIPs. You may invest a total of almost Rs 12 lakh if you begin investing Rs 5000 as soon as your kid is born and keep doing so for roughly 20 years. You would get an interest rate of around Rs 37,95,740 overall in this scenario.
After 20 years of investment, the program will be completed, and you will earn a total payout of around Rs 94,88,175. Based on an average estimate of the interest obtained via a SIP investment plan, this is stated. Long-term plans are offered greater interest rates by certain mutual fund firms. Within 13 years, an investment of Rs 18,000 per month would yield a corpus of almost Rs 70 lakh. Try to maintain the investment amount rising by 10% annually if it is currently little.
According to experts, the cost of higher education in the country is around Rs 20 lakh, but the cost of higher education overseas is roughly Rs 50 lakh (depending on the discipline). The amount of the investment will increase depending on various circumstances.
SIPs and other mutual funds support your commitment to your financial objectives, but they come with market risk, so you should always consider consulting specialists if necessary.
