How Much Should I Invest in SIP?

How Much Should I Invest in SIP?

Many people ask me the above question. This is because some people think that SIP is some kind of Miracle and they can never loose money in SIP while some people think that it is better to invest lump-sum rather than via SIP. In fact, both of these are the Myths.

How much anyone should invest in SIP really depends on the long term financial goals of the Individuals. Say for Example, if you want to accumulate 1 crore after 30 years from today than monthly SIP of only Rs.2000 will be sufficient.

But suppose if you want to accumulate 1 crore in 10 years than may be Rs.20,000 monthly SIP would not be sufficient to meet your target.

In my opinion, You should invest as much money as possible during the first few years of your earning life. This is because if you invest more during the initial phase of your earning life, The compound interest will work more on your wealth and make you richer.

However, You should invest in SIP according to your financial goals.