Find your suitable insurance plan
1119
4 min read
They say that saving is a good habit. Indeed it is. After all, small drops can fill up an entire ocean. This means that every small drop counts. Apply the same example to your money, your earnings. Who says you need to earn lots to start saving? Just saving a small amount of what you earn or possess can indeed reap huge rewards one day. For example, if your monthly income is roughly around Rs. 80,000 – Rs. 100,000, you can comfortably save a minimum of say 20,000 Rupees every month. However, is merely saving enough? To reap profitable returns on your savings, it is vital to invest this money.
This blog throws light at some of the key areas that you can consider for investing at least Rs. 20,000 monthly and how to double your money in the process. It also talks about the benefit of using a SIP calculator to accurately determine the likely returns on your investment.
One of the best ways to consider rupee investment is a Systematic Investment Plan or SIP as it’s popularly known. A lot of people who wish to invest an amount of Rs. 20,000 for the long term, say 10 years, prefer SIP. It can be said that it is undoubtedly the best SIP plan for 10 years.
SIP is highly recommended for small investors looking to invest smaller amounts like INR 20,000 to earn a good Return on Investment (RoI). It is also the best way to invest in the Mutual Funds market. Also, since the investment is made for a term of 10 years, it is important to stay consistent in your investment habits. The same amount of Rs. 20,000 should be invested unfailingly. The frequency of the SIP plan though can be decided upon by the investor. They can decide whether or not the investment is done monthly, quarterly, or annually.
Now let us quickly look at the overall return value to the investor on a SIP investment under varying schemes or values. The general value range of mutual fund SIPs has stayed consistent between 12 and 18% over the last few years. On an average SIP value of 12% annually, the investor is likely to earn the following returns on their investment:
| Amount Invested | Period of Investment | RoI |
| Rs. 20,000 | 5 years | Rs. 17 lakh |
| Rs. 20,000 | 10 years | Rs. 47 lakh |
| Rs. 20,000 | 15 years | Rs. 1 crore |
| Rs. 20,000 | 20 years | Rs. 1.9 crore |
| Rs. 20,000 | 25 years | Rs. 3.5 crore |
| Rs. 20,000 | 30 years | Rs. 6.4 crore |
The table above indicates that on a consistent investment of Rs. 20,000 at an annual average rate of 12%, the investor is likely to earn Rs. 47 lakh after 10 years. If they continue to invest the same amount (INR 20,000) consistently over 15 years or 20 years, this RoI is only expected to increase gradually, even double the original amount invested. For instance, the average SIP return in 20 years is likely to be around INR 1.9 crore.
A SIP calculator is a simple online tool used by investors to get an accurate estimate of the returns on the investments that they made in mutual funds via SIP. A SIP calculator has the following benefits:
The yearly SIP return calculator is designed to calculate the exact return on investment using the following formula:
Amount invested x {(1 + Periodic interest rate) Total number of payments – 1} / Periodic interest rate x (1 + Periodic interest rate)
Summing it Up
It is recommended to start the investing habit early on in life to reap the maximum benefits after a certain period. In this blog, we looked at the average return on a consistent investment of Rs. 20,000 for different periods, from 10 years to 30 years. You can choose your duration of investment and flexibility of payment as per your requirement and convenience. As per your investment, and provided you stay consistent with the practice, you can look forward to earning a decent return on your money invested.
To calculate your returns, the best way is to use a SIP calculator. It uses a systematic approach to computing the earnings on the money you consistently saved as an investment over a specified period. PayBima allows you to use the SIP calculator free on its website. Also, while you’re there, don’t forget to check out the various SIP schemes on our website and choose the one that best matches your investment needs.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
The 50-30-20 rule suggests that you should spend 50% of your earnings on your needs, 30% on wants, and put aside at least 20% as savings.
Investing Rs. 20,000 every month for 10 years means a total of Rs. 24 lakh invested. The return on this consistent investment is approx. Rs. 47-48 lakh, which is double the amount originally invested over 10 years.
The 10-5-3 rule states that it is wise to expect a 10% return on a long-term equity investment, a 5% return on debt instruments, and a 3% average return on savings bank accounts.
A Systematic Investment Plan is considered a better investment tool than Fixed Deposits owing to certain factors, such as diversification, investment flexibility, higher return on investment, and tax advantages.
Yes, SIP falls under the EEE or Exempt, Exempt, Exempt category, meaning that the amount of money invested, the amount due on maturity, as well as the withdrawal amount, are all exempted from tax payment.
Some of the best SIP mutual funds in India in 2023 are:
~ BOI AXA Small Cap Fund Direct-Growth
~ Quant Tax Plan Direct-Growth
~ Quant Infrastructure Fund Direct-Growth
~ Edelweiss Government Securities Fund Direct-Growth
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
The Social Security Pension Management Information System (SSPMIS) Mukhyamantri Vridhjan Pension Yojana is the Bihar Government’s social security scheme. This scheme was initiated to offer.
Mar 14, 2024
4 min read 
Filing the ITR within the due date is very important. By doing so, taxpayers can evade penalties and other consequences due to not filing or.
Mar 08, 2024 4 min read 
In India, many opt for life insurance as a smart move to protect themselves and their families, given the unpredictable future. It's a practical step,.
Mar 07, 2024 4 min read 
Taxpayers can claim tax deductions under section 80DDB of the Income Tax Act, 1961, on the treatment expenses of certain specified diseases. This deduction can.
Feb 16, 2024 4 min read 
In most cases, House Rent Allowance (HRA) is a part of employees' salary and they can claim an exemption for HRA. Hence, if an employee.
Feb 13, 2024 4 min read 
Taxes are important for the financial well-being and the good governance of a country. Without taxes, the functioning of the country gets disturbed. The tax.
Feb 13, 2024 4 min read 
When joining a new organization in the middle of a fiscal year, employees need to fill out Form 12B. This form informs the new employer.
Feb 09, 2024 4 min read 
Payment of Income Tax is directly related to the economy of a country. Hence, every taxpayer in India is expected to pay income tax responsibly.
Feb 06, 2024 4 min read 
You may already know that a rental income or the money earned from renting a property is subject to TDS or tax deducted at the.
Feb 02, 2024 4 min read 
We know that almost every individual owns a savings bank account. We also know that the interest earned on your savings accumulated in a savings.
Feb 02, 2024 4 min read 
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Get A Call Back