Welcome to our comprehensive guide on ‘2000 per month SIP‘ – an excellent way to step into the world of disciplined and affordable investing.
In this article, we’ll explore the benefits of investing in SIPs with a Rs. 2000 monthly investment.
Discover the top mutual funds suited for SIP investments, learn about the power of compounding and rupee cost averaging.
We’ll also provide expert advice on strategic diversification and staying focused on your financial goals.
Discover top mutual funds for SIP, benefits, and expert advice. Start with just Rs. 2000 per month and achieve financial goals easily.
Best Plans for 2000 Per Month Sip in India
Here is some Best Plans for 2000 Per Month Sip in India:
|Axis Bluechip Fund
|Invests in well-established, large companies to provide stable returns.
|Mirae Asset Emerging Bluechip Fund
|Large & Mid Cap
|Invests in both large and mid-sized companies with growth potential.
|SBI Small Cap Fund
|Focuses on investing in small companies with high growth prospects.
|ICICI Prudential Technology Fund
|Sectoral – Technology
|Invests in technology-related companies for potentially higher returns.
|HDFC Hybrid Equity Fund
|Hybrid – Equity-oriented
|Combines equity and debt investments for balanced returns.
|Aditya Birla Sun Life Tax Relief ’96
|ELSS (Equity Linked Savings Scheme)
|Provides tax benefits under Section 80C while offering potential capital appreciation.
|Franklin India Equity Fund
|Invests across companies of different sizes and sectors for diversification.
|Motilal Oswal Multicap 35 Fund
|Invests in a limited number of high-conviction stocks across market caps.
|UTI Nifty Index Fund
|Index Fund – Nifty
|Tracks the Nifty index to provide returns in line with the overall market.
|L&T Liquid Fund
|Debt – Liquid
|Invests in short-term debt instruments for capital preservation and liquidity.
What is the return of 2000 Rs Per Month SIP for 5, 10, 15 and 20 years?
The return generated by a monthly SIP of 2000 Rupees depends on the mutual fund’s performance and market conditions.
Over the long term, well-managed funds have historically yielded an average annual return of 10-12%.
Therefore, an SIP of 2000 per month for several years can potentially accumulate substantial wealth.
If we consider an average of 12% yearly return for 2000 per month sip then the returns are as below–
|Investment Amount (Rs. 2000 Per Month)
How To Invest In The Best SIP Plans With Rs. 2000/Month?
Investing in the best SIP plans with Rs. 2000 per month can be a straightforward process. Here’s a step-by-step guide to help you get started:
- Define Your Financial Goals: Determine your investment objectives, such as wealth creation, retirement planning, or buying a house. This will help you choose SIP plans aligned with your goals and risk tolerance.
- Research Mutual Funds: Look for mutual funds that match your investment objectives. Consider factors like historical performance, fund manager’s expertise, expense ratio, and asset allocation.
- Select the Right Category: Choose from various mutual fund categories like equity funds (large-cap, mid-cap, small-cap), debt funds (liquid, short-term, long-term), hybrid funds, or tax-saving ELSS funds based on your risk appetite.
- Online Account Opening: Open an investment account with a reputable mutual fund company or a reliable online investment platform.
- KYC Compliance: Complete your KYC (Know Your Customer) process by providing required documents like PAN card, Aadhar card, address proof, and a passport-sized photograph.
- Set Up SIP: Once your account is activated, select the SIP option and set up an auto-debit mandate for Rs. 2000/month from your bank account.
- Choose SIP Tenure: Decide the tenure of your SIP based on your financial goals. Long-term SIPs generally offer better returns due to the power of compounding.
- Monitor and Review: Regularly monitor the performance of your SIP investments and review them annually. Make adjustments if necessary based on changing financial circumstances.
- Diversify: Consider diversifying your SIP investments across different mutual funds and asset classes to reduce risk.
- Seek Professional Advice: If you are unsure about which funds to choose or need personalized guidance, consult a certified financial advisor.
Remember, investing in mutual funds involves market risks, and past performance does not guarantee future returns. Stay committed to your SIPs and remain patient, allowing your investments to grow over time. It’s essential to invest systematically and stay focused on your financial goals.
How to invest 2000 Per Month in Sip For 5 Years?
Investing Rs. 2000 per month in SIP for 5 years can be a great way to accumulate wealth and work towards your financial goals. Here’s a step-by-step guide to invest in 2000/month SIP–
- Set Clear Financial Goals: Define your financial objectives for the next 5 years, such as building an emergency fund, saving for a vacation, or down payment for a major purchase.
- Choose the Right Mutual Fund(s): Research and select mutual funds that align with your risk tolerance and investment goals. For a 5-year investment horizon, consider balanced funds or equity-oriented hybrid funds that offer a blend of equity and debt investments for a balanced approach.
- Open an Investment Account: Open a mutual fund investment account with a reputable fund house or through a reliable online investment platform. You’ll need to provide necessary KYC documents like PAN card, Aadhar card, address proof, and a passport-sized photograph.
- Select SIP Option: Once your account is set up, choose the SIP (Systematic Investment Plan) option for your selected mutual fund(s).
- Set SIP Amount: Set the SIP amount to Rs. 2000 per month. You’ll need to authorize auto-debit from your bank account to invest the specified amount regularly.
- Choose SIP Tenure: In this case, select a SIP tenure of 5 years. SIPs work best when invested for the long term, allowing the power of compounding to work in your favor.
- Monitor and Review: While SIPs are designed for regular and disciplined investing, it’s essential to monitor the performance of your mutual funds periodically. Review them annually to ensure they are aligned with your financial goals.
- Stay Invested: During market fluctuations, it’s crucial to stay invested and avoid making emotional decisions. Stick to your investment plan and remain patient for the best results.
- Rebalance if Needed: Depending on market conditions and your financial goals, you may need to rebalance your portfolio by adjusting the allocation between equity and debt funds.
- Stay Informed: Keep yourself informed about market trends and financial news, but avoid making hasty decisions based on short-term fluctuations.
Remember that mutual funds come with inherent market risks, and past performance is not indicative of future results. It’s advisable to diversify your investments and seek guidance from a certified financial advisor if needed.
By following these steps and maintaining financial discipline, you can make the most of your SIP investment over the 5-year period.
Which are the best 2000 per month sip plans in India?
Here are some best 2000 per month sip plans in India–
1. Mirae Asset Emerging Bluechip Fund (Equity – Large & Mid Cap)
A well-managed fund that invests in both large-cap and mid-cap stocks. It aims to provide long-term capital appreciation by identifying promising companies with growth potential.
2. SBI Bluechip Fund (Equity – Large Cap)
This fund primarily invests in large-cap stocks to offer stable returns. It follows a diversified approach to provide investors exposure to well-established and financially stable companies.
3. Axis Bluechip Fund (Equity – Large Cap)
The fund focuses on large-cap companies known for their stability and growth potential. It aims to generate long-term capital appreciation by investing in quality stocks.
4. Aditya Birla Sun Life Tax Relief ’96 (ELSS)
This tax-saving mutual fund comes with a lock-in period of three years and offers tax benefits under Section 80C of the Income Tax Act. It aims to generate capital appreciation over the long term.
5. ICICI Prudential Balanced Advantage Fund (Hybrid)
This fund follows a dynamic asset allocation strategy, shifting between equity and debt based on market conditions. It aims to provide investors with stable returns by managing risk effectively.
Please remember that mutual fund investments are subject to market risks, and past performance does not guarantee future returns.
It is important to evaluate each fund’s current performance, portfolio, and investment strategy before making any investment decisions.
Additionally, consider your own financial goals, risk tolerance, and investment horizon when selecting SIPs. Seek advice from a qualified financial advisor to create a well-rounded investment plan.
If I invest 2000 Rs monthly in mutual funds for 5 years?
If you invest Rs. 2000 per month in mutual funds for 5 years through a systematic investment plan (SIP), here’s how your investments can grow:
- Monthly SIP amount: Rs. 2000
- Investment tenure: 5 years
- Expected annual return: 10% (Please note that actual returns may vary and are subject to market fluctuations.)
Using a SIP calculator or formula, you can calculate the approximate maturity value of your investments after 5 years. Here’s a simplified calculation:
Step 1: Calculate the total investment amount over 5 years:
Total Investment = Monthly SIP amount x Number of months
Total Investment = Rs. 2000 x 60 months
Total Investment = Rs. 1,20,000
Step 2: Calculate the expected returns:
Expected Returns = Total Investment x [(1 + Annual Return Rate) ^ Number of years] – Total Investment
Expected Returns = Rs. 1,20,000 x [(1 + 0.10) ^ 5] – Rs. 1,20,000
Expected Returns = Rs. 1,20,000 x 1.61051 – Rs. 1,20,000
Expected Returns = Rs. 1,93,261 – Rs. 1,20,000
Expected Returns = Rs. 73,261
Step 3: Calculate the maturity value:
Maturity Value = Total Investment + Expected Returns
Maturity Value = Rs. 1,20,000 + Rs. 73,261
Maturity Value = Rs. 1,93,261
So, after 5 years of investing Rs. 2000 per month in mutual funds at an expected annual return of 10%, your investment could potentially grow to approximately Rs. 1,93,261.
Please remember that this is an estimate, and actual returns may vary based on the performance of the mutual funds you choose.
Additionally, consider your financial goals and risk tolerance while investing. It’s always best to consult with a financial advisor for personalized guidance based on your specific circumstances.
What are the benefits of investing in 2000 monthly sip?
Investing in a Rs. 2000 monthly SIP (Systematic Investment Plan) can offer several benefits that make it a popular and effective investment strategy for individuals. Here are some key benefits:
- Affordability and Regularity: With a Rs. 2000 monthly SIP, investing becomes more accessible for a broader range of people. It encourages regular investments, promoting financial discipline and making it easier to stay committed to long-term goals.
- Power of Compounding: SIPs allow you to benefit from the power of compounding, where your money generates returns, and those returns, in turn, generate more returns. Over time, compounding can significantly boost your investment’s growth.
- Rupee Cost Averaging: By investing a fixed amount at regular intervals, you buy more units when the market prices are low and fewer units when the prices are high. This averaging effect can help reduce the impact of market volatility and potentially enhance returns.
- Diversification: SIPs provide the opportunity to invest in a diversified portfolio of assets through mutual funds. Diversification helps spread the risk across different securities and reduces the impact of individual stock or sector performance on the overall portfolio.
- Flexibility: SIPs offer flexibility in terms of investment duration. You can choose short-term, mid-term, or long-term SIPs based on your financial goals. Additionally, you can increase or decrease the SIP amount as per your financial situation.
- Automatic Investment: SIPs are automated investments, meaning the predetermined amount is deducted from your bank account automatically. This streamlines the investment process and saves time and effort.
- Tax Benefits: Some SIPs, such as Equity Linked Savings Schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act, allowing you to save taxes while investing for your future.
- Professional Fund Management: SIPs in mutual funds are managed by experienced fund managers who make informed investment decisions on your behalf, based on market research and analysis.
- Liquidity: While SIPs encourage long-term investing, mutual fund units can be redeemed partially or fully whenever needed, providing liquidity in times of emergencies.
- Goal-Oriented Investing: SIPs help you align your investments with specific financial goals, such as buying a house, funding education, or planning for retirement.
It’s important to note that mutual fund investments carry inherent market risks, and past performance does not guarantee future returns.
Regular monitoring of your investments and staying invested for the long term are essential components of successful SIP investing. Consult with a certified financial advisor to create a well-structured investment plan tailored to your unique financial objectives and risk tolerance.
Which mutual funds are best for 2000 per month SIP?
Here are some best mutual funds for 2000 monthly SIP–
- Mirae Asset Emerging Bluechip Fund
- Axis Bluechip Fund
- SBI Bluechip Fund
- Aditya Birla Sun Life Tax Relief ’96
- ICICI Prudential Balanced Advantage Fund
- HDFC Mid-Cap Opportunities Fund
- Kotak Standard Multicap Fund
- Franklin India Smaller Companies Fund
- DSP Midcap Fund
- HDFC Equity Fund
2000 Per Month SIP for 5 bad 10 Years– FAQ’s
What is 2000 per month SIP?
Rs. 2000 per month SIP (Systematic Investment Plan) is a recurring investment plan where an individual invests Rs. 2000 every month in a mutual fund of their choice. It offers an affordable and disciplined way to invest in the financial markets.
What are the benefits of a Rs. 2000 monthly SIP?
2000 monthly SIP offers benefits like affordability, compounding, rupee cost averaging, diversification, flexibility, professional fund management, and goal-oriented investing. It helps investors build wealth over time through regular and disciplined investments.
How long should I invest in a Rs. 2000 SIP?
The ideal investment duration for a Rs. 2000 SIP depends on your financial goals. Short-term goals may require a few years of investment, while long-term goals like retirement may warrant decades of investing. SIPs are best suited for long-term wealth accumulation.
Are there any risks involved in investing in SIPs?
Yes, SIPs are subject to market risks. The value of mutual fund units can fluctuate due to changes in market conditions. However, investing in a diversified portfolio and staying invested for the long term can help mitigate risks.
Can I increase or decrease my SIP amount?
Yes, most mutual funds allow investors to increase or decrease their SIP amount at any time. You can adjust your SIP amount based on changes in your financial situation or investment goals.
What happens if I miss a SIP installment?
If you miss a SIP installment, the mutual fund company will not deduct the SIP amount from your bank account. However, you can resume your SIP by making the missed payment at a later date. Consistent investing is recommended to maximize returns.
Can I withdraw my SIP investment before the maturity period?
Yes, you can withdraw your SIP investment partially or fully before the maturity period. However, early withdrawals may attract exit loads or tax implications depending on the fund’s terms and investment duration.
Should I diversify my SIP investments?
Yes, diversifying your SIP investments across different mutual funds and asset classes can help spread risk and improve overall portfolio performance. Consider a mix of equity, debt, and hybrid funds based on your risk appetite.
How can I monitor the performance of my SIP investments?
You can monitor your SIP investments through your mutual fund account statement or online investment portal. Review the performance regularly, but avoid making impulsive decisions based on short-term market movements. Stay focused on your long-term financial goals.
Conclusion– ‘2000 Per Month SIP for 5 Years’
Investing in a “2000 per month SIP” offers a convenient and effective way to grow your wealth steadily.
By exploring top mutual funds and understanding the benefits of SIPs, you can make well-informed investment decisions aligned with your financial goals. The power of compounding and rupee cost averaging can work wonders over time, enhancing your returns.
Remember to diversify wisely and review your investments regularly. Whether you’re saving for short-term objectives or long-term aspirations, SIPs can pave the way to financial security.
Start your SIP journey today, and watch your investments flourish as you build a stronger financial future.
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