Mutual Fund Investment Idea – With an investment of just Rs 500 per month, you can become the owner of 35 lakhs!
Mutual Fund Investment Idea – In earlier times there were only a few options for investing. But in today’s digital age! There are many ways in which you can invest and earn a good amount of money. Whenever we talk about investment, a thought comes to our mind that we should have a large amount of money to invest.
But in today’s time, if you do not have much money, then still you can make the biggest investment with a small amount. So let’s know how you can convert this small amount into an investment of lakhs of rupees by investing a small amount.
Mutual Fund Sahi Hai –
Investing in Mutual Funds is very beneficial in today’s time. Because at present the interest is getting 6.5% in fixed deposits, 7-8% in gold and silver and 8% in PPF. But day by day inflation is increasing at the rate of 7-8%. So if we see that whatever we are investing, equal to it, inflation is increasing.
So to get more return than inflation rate, we have to invest in such a place in which we get about 12% or more interest. So this interest is possible in mutual fund because in mutual fund you get returns ranging from 12% to 17-18 & p.a.
What are Mutual Funds –
Mutual Funds are funds through which money is invested in equity shares/securities, government and corporate bonds, commercial papers, treasury bills, etc. Investing in mutual funds is very safe, as it is regulated by SEBI and SEBI is a government body.
If you invest money in mutual funds for a short period of time, then you may suffer some loss. But if you invest in mutual funds for a long time. So you can get returns ranging from 12% to 25%. You can also invest 100 rupees per month in mutual funds, and you can invest as much money as you want.
Types of Mutual Funds –
According to the structure, there are two types of Mutual Funds –
- Open Ended Fund (Mutual Funds that can be bought and sold at any time)
- Close Ended Fund. (Such mutual funds which can be bought and sold within the time limit.
According to the Assets Class, there are three types of Mutual Funds –
Equity Mutual Funds – (These are such funds, in which money is invested in equity [shares])
debt mutual fund – (These are such funds, in which money is invested in government and corporate bonds, commercial papers, treasury bills, etc.)
Hybrid Mutual Fund – (These are mixed funds, in this fund money is invested in more than 1 asset class)
You can invest in mutual funds in two ways –
Lump Sum Investment – Putting money together in mutual funds is called Lump Sum Investment.
SIP – Investing in mutual funds month after month is called SIP (Systematic Investment Plan).
The owner of 35 lakhs made by investing only Rs 500 per month
There are many people who do not have accumulated money. Due to which they are not able to invest anything. So investing through SIP can be a very good option for such people. If you do SIP for a long time, then you can attract and earn huge amount of money.
If you do SIP in mutual funds of Rs 500 per month from today. And if you get 15% rate of return. So in 10 years you will accumulate Rs.60,000 and the total value of your money will be Rs.1,39,329. And if you keep investing Rs 500 per month like this. So in 20 years you will accumulate Rs 1,20,000 and the total value of your money will be Rs 7,57,977! If you only give 10 years more to this investment. So in 30 years you will get Rs 1,80,000 and the total value of your money will be Rs 35,04,910!
How to invest in mutual funds –
You can invest in mutual funds in two ways. The first way is through direct mutual fund apps and the second way is through mutual fund distributors.
Note:- Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Also Read :
SBI Mutual Fund – Invest only 1000 rupees (per month) in this fund of SBI and get a return of 70 lakhs! Invest in this fund like this!