Welcome to another interesting blog where we are discussing the Sip and Swp for infinite wealth Creation, so let’s begin
How do the SIP and SWP create infinite wealth?
This question had come to the minds of many of us simply by creating the SIP and SWP: how does one achieve unlimited wealth?
You would to come to know about it in this part
Sip and Swp Secret of Infinite Wealth
Many of us are busy in our professions, some are students, while others are Doctors, engineers, or in business. In this busy lifestyle, they don’t have much time to review their investments. Investing in Stocks requires a Deep dive into the markets,so because of it the investing seems to be hard;but that’s not true. ‘SIMPLE THINGS WORKS IN THIS MARKETS’,instead of the complex strategies .
We all know that our money is safe in case of Index funds, may look for other options as well to maximize the returns but still if we are quite new and thinks ‘INVESTING IS NOT MY CUP OF TEA’ for them this option is Boon.
Let’s consider an example- Mr. Ram invested in 3 funds: large-cap, small-cap, and mid-cap, each of one.The strategy behind this is to get the benefit of mid-caps and small-caps as well in the long term duration. So he invested ₹15000 each ₹5000 in 3 funds for 15 years and an annual step up of 10%.Let’s calculate his returns. I had used the GROWW TERMINAL for it
NIFTY 50 INDEX RETURNS
NIFTY MID-CAP INDEX RETURNS
NIFTY SMALL-CAP INDEX RETURNS
CALCULATIONS
See most of us invest ₹15000 in a single fund; but what we did we invest ₹5000 in 3 funds to get the exposure of mid and small caps as well.
TOTAL CALCULATIONS- NIFTY 50 INDEX FUND (INVESTED AMOUNT) ₹19,06,349 RETURNS ₹18,84,980
NIFTY MID-CAP INDEX FUND (INVESTED AMOUNT) ₹19,06,349 ₹38,20,247
NIFTY SMALL-CAP INDEX FUND (INVESTED AMOUNT) ₹19,06,349 ₹40,36,406
GRAND TOTAL ₹57,19,047 ₹97,41,633
As a result, he got an exponential return of ₹97,41,633 that’s a huge amount and we had considered the average returns in each of each fund on yearly basis and if the markets are in the extreme BULLISH mode then the returns may grow even further. As in a strong bull run nifty gives the returns of (20 to 25 %) and the mid-caps and small-caps can give even more returns. As he had invested in 3 funds so after 15 years he can use that money to buy a house, to buy a car and rest amount to be received in the form of a salary via SWP.
SWP (SYSTEMATIC WITHDRAWAL PLAN)
Let’s consider the above example Suppose ram had bought a car and house as well so he used the returns given by the NIFTY 50 INDEX FUND, NIFTY MID-CAP INDEX FUND and now he had left with the AMOUNT FROM THE NIFTY SMALL-CAP INDEX FUND so instead of withdrawing the money one stroke he can use SWP plan.So here we had added the invested amount and the returns from the SMALL-CAP Fund as the total balance .
See I had roughly taken this amount of ₹50,000 you can take any amount as you require; but still the money will never end because the balance amount will grow as per the markets value .So at the end the money will never become zero and this flow of withdrawing will remain constant.
CONCLUSION
Thus we come to know that by using the SIP and SWP we can create ,massive wealth and become financially free.
See you in the next post
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To learn the Mutual Funds in detail check out- Part 1 https://bullishblogger.com/mutual-funds-mastery-part-1/
Part 2 https://bullishblogger.com/mutual-funds-mastery-part-2/
Part 3 https://bullishblogger.com/mutual-funds-mastery-part-3/
Till then STAY HUNGRY STAY BULLISH .
