• Want More Profit? Invest in SIP for the Long Term!

    Everyone dreams of maximizing their profits, but chasing schemes without understanding them often leads to disappointment. Before investing, it’s essential to assess the risks and ensure they align with your financial comfort. Mutual funds, particularly via Systematic Investment Plans (SIPs), have emerged as a favored choice for their disciplined approach and potential for higher returns over the long term.

    What is SIP?

    SIP (Systematic Investment Plan) allows you to invest a fixed amount at regular intervals, typically monthly, into a mutual fund scheme. Why is SIP so popular? One word: consistency. The power of compounding and rupee-cost averaging work together, helping investors ride out market fluctuations and build wealth steadily.

    With India’s average inflation rate hovering around 6%-7%, SIPs invested in stock market-oriented mutual funds (such as flexicap or multicap funds) have historically delivered average annual returns of 12%-14% over the long term.

    How Long Should You Invest?

    The secret to wealth creation through SIP is time, not timing. Mutual fund investments aren’t a sprint—they’re a marathon. The longer you stay invested, the greater the potential for returns, thanks to the magic of compounding.

    Here’s what SIP investments could look like at different durations:

    If You Invest ₹5,000 per Month for 8 Years:

    Total investment: ₹4.8 lakhs

    Value at 12% annual return: ₹7.9 lakhs

    Profit: ₹3.1 lakhs

    If You Continue for 12 Years:

    Total investment: ₹7.2 lakhs

    Value at 12% annual return: ₹15.4 lakhs

    Profit: ₹8.2 lakhs

    If You Stay Invested for 15 Years:

    Total investment: ₹9 lakhs

    Value at 12% annual return: ₹23.8 lakhs

    Profit: ₹14.8 lakhs

    More Time, More Profit

    Notice the pattern? The longer you remain invested, the more your wealth grows—not just from your contributions but from the compounding returns. While it’s tempting to focus on the amount invested, the real key is the duration of your investment.

    Why Choose SIP for Long-Term Investing?

    1. Convenience: Automate your investments and avoid market timing.

    2. Rupee-Cost Averaging: Reduce the impact of market volatility by averaging out the purchase price of your fund units.

    3. Compounding Benefits: Earn returns on your returns for exponential growth over time.

    4. Flexibility: Start with as little as ₹500 and increase your contributions as your income grows.

    Investing in SIPs isn’t just about earning returns—it’s about building financial discipline and securing your future. The longer you invest, the more rewarding the journey becomes. Start small if needed, but start early. Your future self will thank you for it!

    Get In Touch
    VIKATAN WEALTH PRIVATE LIMITED

    757, Vasan Avenue, Anna Salai, Chennai - 600 002

    +91 96002 96001
    ask@labham.money
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    Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.