Published: Zee Business| Updated: Zee Business
Power of Compounding: There are various investment strategies available in the market for long-term investments, and one of them is SIP (Systematic Investment Plan). It is a strategy of investing in mutual funds that allows investors to invest money based on their financial capacity. You can set your SIP goals to buy a house, build wealth for your retirement, accumulate money for your child’s education, marriage or other things.
There are many advantages of SIP, such as
– Flexibility in investment
– Rupee cost averaging
– Power of compounding
Power of compounding: Compounding is a process in which you earn capital gains not only on the principal but also on the accumulated capital gains from previous periods. Using the power of compounding, one can create a substantial amount over time through the snowball effect
In this write-up, we will calculate how much money you need to invest in SIP each month to generate a Rs 5 crore retirement corpus in 25 years –