Quality education is costly these days. You need a good amount of money to get your child admitted to a good school or college. But if you invest just Rs 150 a day for your child’s education, you can get a return of Rs 22.70 lakh in a few years. It will ease your burden of paying huge education fees. Know how it is possible.
SIP Calculator: Middle-class families often have to plan to save money before spending. At the same time, the expense of children’s education can burn a hole in your pocket. However, do you know that you can create a good fund through long-term investment?
Read More: Kotak Banks Hikes FD Rates; Check Revised Interest Rate
And it won’t take investing huge amount of money every month.
By saving small amounts and investing them, you can accumulate huge wealth.
If your child’s age is 3 years in the year 2024, you can get a maturity fund of Rs 22 lakh by the time they turn 18 i.e. by 2042.
For this, you will have to follow the SIP plan mentioned below. You can use this for children’s education and higher education.
Read More: Rupee Rises 1 Paisa To 83.36 Against US Dollar In Early Trade
Know what is SIP investment?
Systematic investment plan is called the SIP. Through this, one can invest in mutual funds. Mutual funds are market linked, and there is always fear of losing money in the share market.
But since mutual funds are managed by qualified fund managers, there are less chances of losing money in them.
In SIP, you invest moeny every month, so even if the market is not performing well, it will balance out once it starts performing well.
So, through SIP investment, the risk of losing money in the long term is much less.
The longer you stay in investment through SIP, the better are your chances of geting good returns.
Read More: Can you book a fixed deposit (FD) with a small finance bank without opening a savings account?
SIP Calculator: Make Rs 22 lakh from Rs 150!
In this SIP plan, you will have to invest Rs 150 daily. That means you will invest Rs 4,500 in a month and Rs 54,000 in a year.
Keep in mind, you have to make this investment for 15 years i.e. you will invest a total of Rs 8,10,000 in SIP in 15 years.
Generally, long-term investment in SIP can give an annual return of 12 per cent.
Suppose, you also get a return of 12 per cent.
According to this calculation, you will get only interest of Rs 14,60,592 in 15 years.
At the same time, when SIP matures, you will get the investment amount (Rs 8,10,000) and interest amount (Rs 14,60,592) together.
This total will be Rs 22,70,592.
Keep in mind that before investing, definitely consult a financial advisor.
Taking help can improve your SIP returns.
