If you want to get Orange Freedom as soon as possible in your life then you have to save and invest both because investment is the only way by which you can have financial freedom at the age of 40 and the best way to invest in SIP. By doing a Systematic Investment Plan score continuously for 25 to 30 years, you can become a millionaire at the age of 40, let’s know how to do it.
What Is SIP
(SIP),the full form SIP is “Systematic Investment Plan”. SIP is a facility provided by a mutual fund, under which you invest every month for a time frame and you can start SIP with a minimum of ₹ 500. That’s why SIP is the most popular facility.
How To Start SIP
To start SIP it is very important to have a demat account without demat account you cannot start your SIP and demat account you can open your account on trusted platforms like up stop zerodha, angel broking, and groww app and By selecting any one mutual fund, you can start your SIP in it. There are two types of SIP (1) Monthly SIP (2) One Time SIP. Let us know about both in detail.
(1) Monthly SIP
Under Monthly SIP you have to invest every month and this investment can be started with minimum ₹ 500 and you can increase it as per your wish. Monthly SIP While starting, you can fix your investment date as per your wish.
(2) One Time SIP
Under One Time SIP, you do not need to invest every month, you can make a minimum investment of ₹ 5000 in One Time SIP and you can increase as per your wish.
5 Best Mutual Funds To Start SIP
ICICI Prudential Technology Direct Plan Growth.
Motilal Oswal Nasdaq 100 FOR Direct Growth.
Tata Digital India Fund Direct Growth.
Axis Small Cap Fund Direct Growth.
Parag Parikh Flexi Cap Fund Direct Growth.
How To Become a Millionaire
from SIP If you start SIP with ₹2000 per month for a long period in a good mutual fund, then you can become a millionaire in the coming 25 to 30 years only. SIP works on compound returns for example. Started your SIP with ₹ 2000 per month and you got 10% return in 1 month and it increased by Rs2000 to Rs2200 then next month you will get return on Rs2200 instead of return on ₹ 2000 and this compound return of SIP will make you a millionaire will make.
If you follow all the rules of SIP well and run your SIP of ₹ 2000 continuously for 30 years, then you can convert your money into a huge amount of up to 2.5 crores by investing ₹ 700000.
Things To Keep In Mind
while taking SIP Pay attention to fund expense ratios while taking SIP Expense ratio should be less than 1% While.
taking SIP must check 3 year, 5 year and all time returns.
of the fund Fund manager of the fund while taking SIP While.
taking SIP, definitely check the holding of the fund.
Why Should I Take SIP?
You should take SIP because SIP is the safe facility of mutual funds, under SIP you can get financial freedom in 25 to 30 years only. SIP is the only way by which you can reduce your income tax to a great extent and SIP Mutual Fund) is the only facility whose income tax is the lowest SIP should also be done because in SIP you get to see the least risk, in SIP your money is invested by professional investors.
Who Should Take SIP?
Usually SIP should be taken by all people because under SIP you get to see very little risk and very good profit and SIP should be done more by those people who do not have a large amount of money saved so that those people make their money every month. Be able to save money and invest your money in the company as per your wish.
What Is The Date Of Installment Of SIP?
You can keep the date of SIP installment as per your wish, but if you keep the SIP installment from date 15 to 25, then you get to see more profit of some percent because from date 15 to 25, the time of monthly expiry of the stock market becomes Due to which there is a decline of some percent in all the stocks and if you invest in that time period, then you get the shares at cheap prices, due to which you gain some percent.