SIP Calculator: There is no doubt that even today a large section of the country trusts bank FDs the most. However, there is a section of common investors in the country who are taking risks and investing money openly in SIPs. On one hand, SIP carries the biggest risk of the stock market. On the other hand, it also gives huge profits due to the rise in the stock market. Along with this, one also gets the full benefit of compounding in SIP. But, to take full advantage of compounding, you have to continue investing for as long as possible. Here we will know for how many years one has to invest to become a millionaire through SIP of Rs 2000.
In how many years will a fund of Rs 1 crore be ready from a SIP of Rs 2000?
If you get an estimated return of 12 percent every year, then you can become a millionaire by creating a corpus of Rs 1.10 crore in 35 years with a SIP of Rs 2000. This includes Rs 8.40 lakh of your investment and approximately Rs 1.01 crore of returns. Similarly, if you get an estimated return of 15 percent every year, then a SIP of Rs 2000 can create a fund of approximately Rs 1.12 crore in 30 years. This includes your investment of Rs 7.20 lakh and an estimated return of approximately Rs 1.05 crore.
How much tax is charged on SIP
Let us tell you that capital gains tax also has to be paid on the returns received from SIP. Talking about the current rates of long term capital gains tax, it is currently 12.5 percent. Long term capital gains tax is applicable if a SIP is operated continuously for more than 12 months. If you close the SIP and withdraw money before 12 months, you will have to pay short term capital gains tax of 20 percent on the returns. Keeping the tax liability in mind, it is beneficial to continue SIP for maximum period.
