Rs 100 Daily Investment In SIP: Here's How Much It Can Make In 10 Years

Mutual funds offer an opportunity to invest across various assets without getting exposed to market volatility directly. Investors can choose both lump sum schemes and Systematic Investment Plans (SIPs) to invest in mutual funds. For investors looking forward to more flexibility and a long-term investment horizon, SIPs could be a suitable choice.

As per industry trends, mutual fund SIPs have offered higher returns in the long run compared to traditional investment instruments. SIPs offer investors a disciplined and flexible approach for wealth accumulation. Investors can choose the amount and tenure as per their financial needs.

Investors looking forward to investing small amounts regularly may find SIPs more suitable. Many mutual fund schemes allow even investing as low as Rs 100 per day through SIPs.

If you are planning to invest in a mutual fund scheme, it is important to evaluate a few key aspects before choosing a daily SIP scheme.

Generally, most mutual fund houses offer monthly SIPs. However, daily SIPs could be suitable for investors with an irregular income cycle.

Daily SIPs allow investors to invest a fixed amount in a mutual fund scheme each day. The strategy could be helpful to capitalise on market fluctuations with the spread of the investment across small amounts. The steady investments help in minimising risks due to rupee cost averaging. Over the years, your money will earn interest and grow steadily due to the power of compounding.

Investing small amounts daily promotes disciplined savings, leading to wealth accumulation without any additional financial burden.

However, daily SIPs come with their own complications like cumbersome record-keeping due to daily transactions, taxation complications and market-linked risks.

Saving a small amount like Rs 100 per day may look like a futile effort toward wealth accumulation initially. However, by investing a pocket-friendly amount daily via SIPs, you can even build a sizeable corpus over a long-term horizon.

Let us see how a daily SIP of Rs 100 could grow in 10 years at an estimated return of 12% per annum:

Total Investment: Rs 3,65,000

Expected Return: 12% per annum

Tenure: 10 years

Total Returns: Rs 3,40,735.03

Total Corpus: Rs 7,05,735.03

The above calculation shows that investing even Rs 100 per day can nearly double your invested money over 10 years.

A daily SIP of Rs 100 may not make you rich overnight, but it could be helpful in inculcating financial discipline. It may seem like a small amount, but investing Rs 100 daily could take you a long way. However, it is advisable to choose a suitable SIP scheme as per your financial needs, risk appetite and investment horizon.