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Most people argue that investing Rs 1000-2000 will not yield anything, so they are not investing. Because they have only Rs 1000-2000 left every month. But this is just an excuse. The truth is that big financial goals can be achieved by starting with small investments.
Actually, for safe investment, get FD done in bank and post office. But you will not be able to achieve any big financial goal with the returns you get from this. At the same time, by taking a little risk one can earn big money from mutual funds. Today everyone can easily save Rs 1000 every month. Anyone can become a millionaire by investing just one thousand rupees.
The strategy should be that if you are in a position to invest Rs 5000 then do SIP of Rs 2 thousand per month. Today investing Rs 2000 every month is not a big deal. Even if you earn Rs 20,000 per month, you can still invest Rs 1,000 of it in a place where you can get big returns with less risk.
By investing Rs 1000 every month in banks and post offices for 20 years, you are not going to get Rs 31 lakh. Because during 20 years you will deposit only Rs 2.40 lakh per thousand rupees per month. But if you invest Rs 1000 every month in mutual funds, you can earn big money. Mutual funds have given excellent returns in the last two decades. Some funds have given returns up to 20 percent.
Investment for up to 20 years
If you invest Rs 1000 per month in SIP for 20 years and get 12 percent annual return on it, then after 20 years you will get a total of Rs 9,99,148 (about Rs 10 lakh). In these 20 years you will have to deposit a total of Rs 2,40,000. If you get 15 percent return on this investment then you will get more than Rs 15 lakh (Rs 15,15,995). If we look at 20 percent return, then after 20 years a total of Rs 31,61,479 will be deposited on a monthly investment of Rs 1000.
Investment for up to 30 years
Whereas an investment of 30 years and Rs 1000 months can give bumper returns. In such a situation, after 30 years on SIP of Rs 1000 per month, he will get a total of Rs 35,29,914 at the rate of 12 percent return. If you do SIP of Rs 3,000 every month, then after 30 years you will get around Rs 1.05 crore at 12% annual return.
Whereas, if you get a little more interest, i.e. a return of 15%, then you will get a total of Rs 70 lakh on a monthly SIP of Rs 1000. There is a possibility that if someone gets 20 percent return on an investment of Rs 1000 for 30 months, then after 30 months he will get a total of Rs 2,33,60,802 (more than Rs 2 crore). During this 30 years the investor will have to deposit only Rs 3 lakh 60.