Earn Rs
17,500 Every Month Sitting At Home: Often we think that there is no big benefit in investing with a small amount. But do you know that if you invest a lump sum of 1 lakh in mutual funds, then how big an amount it can turn into? And the biggest thing is that this amount can also give you a regular income of about Rs 17,500 every month for 30 years.
Let's understand its complete calculation, How to earn a monthly income of ₹17,500 for 30 year?
Suppose you invested ₹1 lakh in lump sum equity mutual fund where you get 12% annual return. After 30 years, your investment will reach around ₹30 lakh. Even after tax, you will have around ₹26.5 lakh. Now you transfer this amount to a hybrid or debt fund through SWP, where you get a safe return of about 7%.
Also Read: Amanta Healthcare IPO Day 1: GMP, Subscription, Price Band and Expert Review With this, you can get a regular income of ₹17,500 every month and this income will continue for 30 years. Overall, you would have withdrawn about ₹63 lakh from an investment of ₹1 lakh and in the end you will also have some savings left.
When and how to invest?
First of all, it is important to know how important it is to choose the right time and right place for investment. If you start investing in mutual funds from today, especially in equity mutual funds, then even a small amount can become a big amount in the long run. The secret behind this is compounding i.e. the formula of earning interest on interest, the more time you give to the investment, the more it will grow.
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There are two ways to invest in mutual funds, SIP (Systematic Investment Plan) and lump sum investment. In SIP, you invest a little money every month, which gradually builds up your big fund. Whereas, in lump sum investment, you invest a large amount at one time.