Systematic Investment Plan (SIP), a popular way to invest in mutual funds, is considered a good investment option in today’s time. Despite being linked to the market, SIP is considered a less risky investment option than investing money directly in stocks.

Although there is no assured return guarantee in mutual fund investment through SIP, the data of historic return shows that SIP has given an average return of 12 per cent, which is higher than many of the investment schemes.

Apart from this, due to the benefit of compounding, SIP money grows rapidly.

SIP is also considered a good option in terms of wealth creation.

The special thing is that you can start investing in this scheme with just Rs 500 and can increase or decrease this investment anytime according to your income.

However, regarding SIP, experts believe that if you invest in it for a long time and keep increasing the investment a little from time to time according to the income, you can earn good profits.

Let us tell you how even if you invest only Rs 1000 monthly, you can generate a corpus of more than Rs 35 lakh.

Know how Rs 3.60 lakh can become Rs 35.30 lakh

Suppose you start a monthly investment of Rs 1000 in SIP, you will invest Rs 12,000 in a year.

If you continue this investment for 30 years, you will invest a total of Rs 3,60,000 in 30 years.

If you get an average return of 12 per cent on this, then on an investment of Rs 3,60,000, you will earn Rs 31,69,914 as capital gains, and the total return that you will get in 30 years will be Rs 3529914.

It means the amount that you will get after 30 years will be nearly 10 times of your total investment.

If you increase the investment amount by 5 per cent every year during these 30 years, you will invest a total of Rs 7,97,266 in 30 years and at the rate of 12 per cent return, and your return will be Rs 52,73,406.