When you are thinking about how to create a big fund by saving much less, then SBI Magnum Multicap Fund is probably the best option for you. This fund is just right for those who want good long-term profits and would like to place their money in different venues.
If you are thinking how to create a big fund by saving a little amount, then the SBI Magnum Multicap Fund can be a good option for you.
What is SBI Magnum Multicap Fund?
This is a collective investment scheme that would invest money in the shares of large, medium, and small companies. This disperses your money not into one place but into lots of places. This fund has been giving an annualized average return of 14.54% for the past few years. However, this return is not constant, it is dependent on the changes in the market.
How much will you get from a SIP of 2000 for twenty years?
If you do a SIP of 2000 every month and continue to do so for 20 years, then your investment will be 480000. This amount will, however, grow through compounding to about 2840508.
This will include 480000 as your deposited money and as interest, you will receive 2360508. Compounding means interest is added to your money and this interest gets added again to your money to earn more interest.
The Compounding Magic
If you invest your money on a long-term basis, compounding works best here. The interest here keeps on accruing onto your money every year; that’s why the more time it has, the faster it grows your money. It is very suitable for people who want to invest with low risk. There your money is invested in both big and stable companies and small and fast-growing companies.
- Good for a beginner because it is also experience in terms of coming into different sectors and companies. Above all, this is a very short-term fund because here, compounding effects are very high.
- Why is SIP a good way? You can begin investing in small numbers using SIP. Instead, you need not put down a significant capital all at once. You invest a little every month, and it adds up in the long run.
Additionally, SIP provides the advantage of market volatility. When the market is low, you gain a great deal more units, and your money skyrockets during an upmarket trend. You can easily begin SIP. It can also be begun via an online platform.
Anyone can select his amount and period, then start investing. If you want, you can even increase or decrease your SIP amount from time to time. What to remember.
This fund starts giving good rewards
nonetheless, it is completely linked to the market. So take your goals and needs into account while investing. Review the investments frequently as well. If you think that the fund is underperforming per your expectations, you can change the fund. Right now is the time to invest. The earlier you start, the better compounding does you. If you do SIP of ₹2000 a month, this fund will give you a big fund in 20 years.
