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Rs 30,000 SIP: It will take 8 years and 2 months to get Rs 50 lakh from Mutual Fund SIP if the annualised rate of return is 12%. Rs 40,000 SIP: It will take 6 years and 9 months to get Rs 50 lakh from Mutual Fund SIP if the annualised rate of return is 12%.
A lump sum investment can be easily converted into an SIP. This can be done through the platform you are using to invest. You need to set up an SIP through that platform and start investing at periodic intervals.
Tips to Remember to Make 50 Lakhs in 5 Years Invest in a Diversified Portfolio. You must own multiple assets to diversify your investments. ... Take Advantage of Compound Interest. ... Invest in Growth Stocks. ... Take a Long-Term Approach. ... Use Rupee-Cost Averaging. ... Consider Using a Financial Advisor. ... Be Patient.
You must use the mathematical formula: FV = PV(1+r)^n FV = Future Value PV = Present Value r = Rate of interest n = Number of years For example, you have invested a lump sum amount of Rs 1,00,000 in a mutual fund scheme for 20 years. You have the expected rate of return of 10% on the investment.
Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme. SIP or Systematic Investment Plan, on the other hand, entails the investment of smaller amounts on a monthly basis.