What is the right age to start SIP? If you know it now, you will spend your old age in fun, these are the secrets.

SIP i.e. Systematic Investment Plan is considered to be a good return-giving option for investment in today's time. But have you ever thought what is the right age to invest in the SIP which is considered good for investment. Yes, the sooner you start investing in SIP, the more benefit you will get in the future. So let's know what is the right age to start SIP and how a small investment will create a strong fund.

If you also want to make your future tension free by stepping into the world of investment, then SIP i.e. Systematic Investment Plan is going to be the best option for you. Yes, SIP is very much liked among the people for investing. Investing in SIP may be a little risky, but by investing a small amount, you can create a big fund in the long term. But have you ever thought what is the right age to invest in SIP.

You get more benefit in SIP only when the investment is made for a long time. So this is the reason why the right age to invest in it is when you start earning. Usually people start earning at the age of 21 to 25 years and this age can also be considered best for SIP. Actually, at this age financial responsibilities are less, due to which investing in SIP can be right.

Investors see the magic of SIP a lot. Actually, the biggest benefit of SIP is considered to be compounding. This is such a formula of SIP which has the power to increase your money rapidly manifold with time. This is the reason that the sooner you start investing in it, the more benefit you will get.

Let us assume that if you are 25 years old now, then you can easily start a monthly SIP of ₹ 2,000. Then continue this SIP of ₹ 2,000 for 30 years, in which the estimated return will be around 12%. That is, a small investment of ₹2,000 will turn into a strong fund after 30 years. After 30 years, at the age of 55, the total value of the fund will be ₹61,61,946.

Now if you start investing this ₹2,000 at the age of 35, then the investment time will be 20 years. In which the total value will be ₹18,39,715 according to 12 percent. Also, if you start at the age of 45, then the investment period will be 10 years, in which the total value of the fund will be ₹4,48,072.

Often people feel that to create a strong fund through SIP, you have to invest a large amount, whereas it is not so. If you invest a small amount quickly through SIP, then a good fund will be created. In SIP, you can start with ₹500 to ₹1,000 per month. Only by investing regularly in SIP and being patient, a good fund can be created.

A small amount will be required to start SIP at a young age. If you start SIP at a young age, you will have to choose a small fund, in which regular investment can be done easily. You will get the benefit of compounding from SIP. However, one should not make the mistake of stopping SIP after seeing the fall in the stock market.

However the sooner you start SIP, the more benefits you get. But this does not mean that you cannot start it late. Even if you start investing at the age of 40 or 45, you can still create a good fund, you just have to keep the investment amount large. (The news is based on general information...be sure to consult an expert before investing in SIP)