What Is The Best Age To Invest In A SIP: If you also want to make your future tension-free by investing, then SIP (Systematic Investment Plan) can be the best option for you. In this, you can start investing with less money and create a big fund in the long run. But do you know which age is right to invest in an SIP? Let us tell you about it.
SIP is quite popular among the common people. Investing in SIP may be a little risky but by investing small amounts you can create a big fund in the long term. The benefit of investing in SIP is more only when you invest in it for a long time.
Right age to invest in SIP?
The longer we invest in SIP, the more benefit we get. This is the reason why we should start investing in it as soon as you start earning. You should start investing in SIP only then. It is usually seen that a person starts earning money between the ages of 21 and 25 and this is considered to be the best age to invest in SIP. Actually, at this age the financial responsibility is less, due to which we can easily invest in SIP.
ALSO KNOW: Which bank has the best scheme?
How does money grow in SIP?
SIP has compound interest, due to which your money grows rapidly over time. This is the reason that the sooner you start investing in SIP, the more benefits you will get. Suppose you started earning at the age of 25 and at the same time started investing in SIP. So you started investing in monthly SIP with Rs 2000 which continued for 30 years on which you got an estimated return of 12%. At the same time, after 55 years, this will become a good fund whose total value will be Rs 61,61,946.
Benefits of investing in SIP
You can start investing in SIP at a young age and with a small amount. Due to this, you will get more time to invest and your fund will grow bigger. People who invest in SIP make the mistake of stopping their SIP during a fall in the stock market but they should not do this.
ALSO READ: Top 10 government schemes
