Invest 25000 in SIP & Earn in 5, 10, 20, or 25 Years

SIP is popular amoung the investors, specially those looking to amass wealth in a tax beenfiting scheme. Did you know that there is a possibility of you earning by Invest 25000 in SIP under various scheme tenure? SIP is a structured method of investing a fixed amount at regular intervals (weekly, monthly, or quarterly). This disciplined approach helps investors build wealth.

But how much can you earn by investing Invest 25000 in SIP?

Whether you’re just starting your investment journey, with this blog you will understand the remarkable ways of wealth-building potential of Invest 25000 in SIP annually.

What is SIP?

Systematic Investment Plan (SIP) is a type of investment method where an investor fixes to investing a fixed amount of money at regular intervals over a period. SIP allows investors to build money and understand the importance of compounding.

For an even better understanding, the table below provides an overview of the table below.

Details on Systematic Investment Plan
Investment Amount	The fixed amount of money invested at regular intervals, such as ₹25,000 per month or quarter.
Investment Frequency	The frequency of investment can be monthly or quarterly.
Investment Period	The duration over which the SIP such as 5, 10, 15, 20, or 25 years.

Why SIP?

Other than allowing investors to build wealth gradually through regular, disciplined investments. SIP offers additional advantages that position it as one of the top investment choices for you.

Timely Investing: SIP works as an automated investment process where you invest a fixed amount at regular intervals to develop a consistent savings’ habit.

Rupee Cost Averaging: Investing the same amount at regular intervals, SIPs can take advantage of market fluctuations. By investing regularly, you might buy more shares when prices are low and less when prices are high.

Compounding: SIP’s regular investments, automatically reinvested with your earnings, benefit from compounding to grow your wealth faster.

Affordability: SIPs allow investors to start with relatively small investment amounts, making it accessible for those with limited budgets. This makes it easier for investors to get started and gradually increase their investments.

Flexibility: SIPs offer the flexibility to adjust the investment strategy as the investor’s circumstances may grow

Diversification: SIP has a variety of asset classes, such as equity, debt, or a mix of both, to lesser risk and potential.

Calculating Potential Earning if You Invest ₹25,000

To understand the remarkable wealth-building potential of a Invest 25000 in SIP annual, the table below provides a better understanding.

Years	Total Investment	Capital Gains	Maturity Amount
5	₹1,500,000	₹562,000	₹2,062,000
10	₹3,000,000	₹2,808,000	₹5,808,000
15	₹4,500,000	₹8,114,000	₹12,600,000
20	₹6,000,000	₹18,900,000	₹24,900,000
25	₹7,500,000	₹39,900,000	₹47,400,000

Note: This table shows estimated returns based on different scenarios. Actual returns may vary depending on market conditions

SIP Calculator

An online SIP Calculator can come in very handy as an easy companion for simplifying your mutual fund investment. The calculator provided below presents helps come with two types of calculators. One is for SIP and the other lump sum calculation.

The SIP Calculator Online is your financial ally in the world of mutual fund investments. This lump-sum calculator helps you estimate and helps you check the nuances of Systematic Investment Plans or SIPs.

Formula to Calculate SIP

You can also manually calculate your SIP by following the formula below. Calculating your SIP will help you understand your earning potential.

The formula to calculate SIP is

M =P*[ {(1+i)n-1 }/ i ] * (1+i)

where

M is the amount you receive upon maturity.

P is the amount you invest at regular intervals.

n is the number of payments you have made.

i is the periodic rate of interest.

M = ₹25,000 * [{(1 + 0.010833)^60 – 1} / 0.010833] * (1 + 0.010833)

M = 25,000×69.1178×(1+0.010833)

M = 1,747,850

Hence, the M=₹1,747,850 shows the potential growth of an investment of ₹25,000 per month over 60 months, assuming a monthly interest rate of approximately 1.0833%

Please note: The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.

How Can SIP Calculator Help?

If you are stepping new to the journey of investment and savings journey, then here’s how an SIP calculation can assist you in making better decisions:

Estimate returns: The SIP calculator can help you estimate the future value of your investments by taking the investment amount, investment duration, and expected return into account.

The right investment amount: The SIP calculator can help you choose the right investment amount based on your financial goals and risk tolerance.

Track your progress: The SIP calculator helps you track your progress over time and makes necessary adjustments to your investment plan.

Also Read: SEBI New SIP Rules for Mutual Fund Investors

SIP Plans for Investments

Now that you have a fair idea about SIP and how it mechanises, the below table consists of a list of SIP plans for a return period of 3 and 10 years. It should help you choose the apt SIP plan for yourself :

Fund Name	3 Years	5 Years	10 Years
Top 200 Fund	23.15%	27.3%	19.47%
Virtue II	21.78%	23.76%	17.76%
Pure Equity	18.83%	19.17%	16.34%
Growth Opportunities Plus Fund BHARTI AXA	17.85%	18.97%	15.65%
Pure Stock Fund	17.49%	18.39%	15.52%
Blue Chip Fund	14.09%	14.83%	12.85%
Growth Super Fund	14.38%	15.26%	12.72%
Multi Cap Growth Fund	15.63%	13.98%	12.51%
Equity Fund	14.73%	14.91%	12.42%
Growth Plus Fund	12.78%	12.27%	10.7%