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News India Live, Digital Desk: Every parent dreams that their child’s future is bright and secure. They want that when their child grows up, there should be no shortage of money for his education, marriage or starting a business. But in the era of rising inflation it is not easy to fulfill this dream. If we tell you that you can make your child a millionaire by saving just Rs 250 every month, then you might not believe it.
But it is absolutely true! A special scheme of State Bank of India (SBI) ‘SBI Child SIP’ gives you this opportunity. This is a scheme in which you can start investing with a very small amount and build a huge fund over a long period of time.
What is SBI Child SIP?
This is actually a way to invest in SBI Magnum Children’s Benefit Fund. This is a mutual fund scheme, which has been specially designed keeping in mind the future needs of children. Through SIP (Systematic Investment Plan), you deposit a fixed amount every month.
Most of the money of this fund is invested in equity (share market), due to which there is a possibility of getting excellent returns in the long term.
How does the mathematics of becoming a millionaire with ₹250 work?
The ‘Power of Compounding’ works in mutual funds, which is also called the eighth wonder of the world. This means that you get interest not only on your investment but also on the interest earned on that investment. Over time this small investment turns into a huge amount.
Let us understand with an example:
- Monthly Investment (SIP): ₹250
- Investment Period: 25 years
- Estimated Returns: 15% per annum (it is possible to get this much return in the long run in equity mutual funds)
If you deposit only Rs 250 every month in this scheme for your child for 25 years, then:
- Your total investment will be: ₹250 x 12 months x 25 years = ₹75,000
- Estimated maturity amount will be: About ₹8.20 lakh
This is just a matter of Rs 250. If you increase the investment amount a little, you can easily achieve the goal of becoming a millionaire.
How much should one invest to become a millionaire?
- If you are in 25 years 1 crore rupees If you want to create a fund of Rs. ₹3,000 per month SIP will have to be done (on the assumption of 15% annual return).
Why is this scheme special?
- Small beginnings: You can start investing with just Rs 250 per month.
- Potential for better returns: Due to investment in equity, it is expected to get higher returns than FD or other savings schemes.
- Discipline: Through SIP, a fixed amount is deducted from your account every month, which creates the habit of saving.
- resilience: You can increase or decrease the investment amount anytime as per your convenience.
One important thing: Investing in mutual funds is subject to market risks. Therefore, read all the scheme documents carefully or take the help of a financial advisor before investing. But it is certain that if you invest in a disciplined manner for a long period, this scheme can make your child’s future golden.
