Business News Desk – If you also want to earn great returns by investing in mutual funds through SIP, but you do not have a huge amount to invest every month, then Micro SIP is a better option. Micro SIP is the short form of Systematic Investment Plan (SIP). In this you can get good returns by depositing just Rs 100 every month. Know what is Micro SIP and its benefits.
What is Micro SIP?
The minimum investment amount in SIP is Rs 500 per month. But in Micro SIP you can create a fund worth lakhs even by investing a minimum of Rs 100. Most of the fund houses launch it to attract more and more small investors towards mutual funds. It is also being said that in order to give maximum returns to even the smallest investors, preparations are being made to make minimum monthly investment of Rs 50.
For whom is Micro SIP most beneficial?
It is beneficial for those who have just started investing, i.e. new investors, to invest through Micro SIP.
It is also good for those investors who are able to save a small amount every month and invest in it.
Investing through Micro SIP also develops the habit of saving regularly.
No need of KYC in Micro SIP
KYC is not required for investing in Micro SIP. This is also because the amount deposited in it in a financial year does not exceed Rs 50,000.
How much money will you get from SIP of Rs 100 in 15 years?
If a person starts a micro SIP of Rs 100 every month, then the amount deposited by him in a year will be Rs 1200. At the same time, the total amount deposited by him in 15 years will be Rs 18000. If we assume an average return of 12 percent on this, then after 15 years he will get around Rs 50,000.
With SIP of Rs 250 you will become a millionaire in 15 years
If an investor does SIP of Rs 250 every month, then the total amount deposited by him in 15 years will be Rs 45000. Now if we assume an average return of 12 percent on this, then in 15 years he will get around Rs 1.25 lakh. Similarly, if a person deposits Rs 500 every month, then the amount deposited by him in 15 years will be Rs 90,000. According to the average return of 12 percent on this, he will get Rs 2.50 lakh.