Here's how you can turn Rs 100 a day investment into Rs 20 lakh via Mutual Fund SIP

Due to low interest rates, savings schemes offered by banks are no longer attractive. If you are looking to generate greater returns from your investments, then mutual fund is one of the best options. If you start investing a particular amount every month, then after a few years you will accumulate a big kitty.

Let us see how can build a robust corpus by saving only Rs 100 a day.

How will you earn Rs 20 lakh from this?

If you manage to save Rs 100 daily, then it comes to Rs 3,000 a month. Every month, you need to invest Rs 3,000 in a mutual fund scheme through the Systematic Investment Plan route for a period of 15 years. There are many mutual fund schemes which promise returns of 15% per annum. If you continue to get such returns, then after 15 years you will have a corpus of Rs 20 lakh.

If you invest in a mutual fund scheme for 15 years, then your total investment will be Rs 5.40 lakh. You will get direct benefit of Rs 14.6 lakh, which includes the benefit of compounding. It will result in a corpus of Rs 20 lakh

Invest via SIP

SIP is the best way to invest in mutual fund schemes. Through this, the investment gets a good average, which reduces the risk of investment and increases the possibility of good returns. After starting Mutual Fund SIP, it is not necessary that you invest only till the scheduled time. You can stop this investment whenever you want. There is no penalty for doing this.

What is the best option?

According to tax and investment experts, Equity Mutual Funds are the best option for investors who want to see their own investment in crores. According to experts, if a person starts investing at the age of 30, then he has the opportunity of regular investment (MF investments) for 30 years. They should invest in the Systematic Investment Plan (SIP) of equity mutual funds.

It is necessary to keep a step-up rate

If one invests in mutual funds with a 15% return (estimated) for 30 years, then he can soon become a millionaire. In these 30 years, they will also get the benefit of compounding with fixed 15%. Also, a step-up rate of 10% will have to be kept every year.

Use this formula to become crorepati 

Invest Rs 100 every day in SIP and set your investment target for 30 years. The annual 10% step-up rate will have to be added. After 30 years, your maturity amount will be Rs 4,50,66,809. According to the mutual fund calculator, the investment stood at Rs 59,17,512 in 30 years. At the same time, his wealth increased by Rs 3,91,49,297. In this way, you can become a millionaire by using the step-up rate trick.