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SBI Mutual Fund Gives The Power Of Compounding Via SIPs, Helps Your Money Grow

To be able to make consistent returns on your savings, the depositors can opt for the systematic investment plan (SIP) of SBI (State Bank of India) mutual fund that not helps inculcate the habit of saving, but also enables your money to multiply manifold thanks to the power of compounding. To be able to save money, one only need to part with a tiny amount on a monthly basis. The money is deducted on a particular day of your choice, and with the power of compounding; the money keeps swelling as the time rolls on. It is advisable to stay invested for the longest period possible.

The State Bank of India (SBI) Mutual fund, on its official website,, explains the scheme of things in a very lucid and succinct way website.

In case you choose to invest Rs. 3,000 per month and expect a rate of return of 10 percent. After 20 years of regular investments in the SBI mutual fund, you can expect to receive Rs.22.9 lakh. One must note that the total cost of investment is Rs. 7.2 lakh. Similarly, if you continue the SIPs for another 10 years, which means 30 years, your investment will grow to become Rs. 68.4 lakh, while the total cost of investment stood at Rs. 10.8 lakh.

In another illustration, the SBI mutual fund elaborates an illustration to explain as to how can one save (say) Rs. 50,000 in a span of one year. In case the rate of interest is assumed to be 10 per cent, the monthly investment amount would come to Rs. 3,946.