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Tanya Saksena

Tanya Saksena

Senior Copywriter, LXME

Can One Start SIP with 500 Per Month?

Isha: “I really need to start investing for my retirement but it just seems impossible with how little I earn.”

Nikita: “What? Why do you think it’s impossible?”

Isha: “Well, don’t you need tons of money to even begin investing? I can barely make ends meet as it is.”

Nikita: “You’re so wrong! You absolutely can start sip with 500 per month. In fact, that’s what I’ve been doing for years now.”

Isha: “Seriously? But how? That’s such a small amount to invest in mutual funds.”

Priya: “Through an SIP! With just 500 rupees a month, you can start building a decent retirement corpus over time through a systematic investment plan for women.”  

Riya: “Huh, I had no idea. Tell me more!”

Introduction:

We’ve all been there – looking at our measly salary and wondering how on earth we’ll ever be able to save enough for a comfortable retirement. Investing seems like something only the wealthy can do, with their bottomless pits of disposable income. But the reality is, you don’t need to be rich to start investing. In fact, with SIP with 500 rupees per month, any working woman can start planning for her long-term goals and retirement through mutual funds.

Are you thinking – “500 rupees? That’s nothing! How can I possibly invest such a small amount and see any real growth? Are there any specific small amount mutual fund plans that I don’t know about?” But here’s the thing – through the power of compounding, even a humble SIP 500 per month can blossom into an impressive sum over a few decades. So, if you often ask yourself, “Can I start SIP with 500 rs?”. The answer is yes, absolutely!

Let’s look at some numbers:

If a 25-year-old woman starts an SIP 500 per month in a mutual fund portfolio with 14%* assumed returns,  by the time she’s 60, her total investment of just Rs. 2,10,000 would grow to a mind-blowing ₹56,16,243! And that’s not even accounting for any increases to her monthly contribution as her income grows over time.

The key here is starting early and letting the power of compounding work its magic year after year. With an SIP, your money gets invested at different points, insulating you from market volatility. So even if the markets dip temporarily, your regular investments will continue purchasing more units when prices are low.

With LXME’s easy-to-use calculators, you can put a price to your goals, learn everything about personal finance to equip yourself, and start investing in expert-curated mutual fund portfolios according to your goals

Of course, Rs. 500 may seem like a stretch for some. But look at it this way – that’s just about the cost of two movie tickets or a couple of fancy Starbucks drinks per month. I’m sure we can all find a way to trim some discretionary spending and learn how to invest 500 rupees towards our future financial security. Even skipping one dress purchase every few months can easily fund this investment.

SIP Amount₹500
Assumed Rate Of Returns14% p.a.*
Time Period35 years
Invested Amount₹2,10,000
Total Value₹56,16,243

Conclusion:  

At the end of the day, the most important thing is to simply start. Don’t wait until you’re earning millions to begin investing, because then you’ll have missed out on years of potential growth. Take that first step, no matter how small, and watch as your mutual fund 500 per month contribution blossoms into a tidy sum to fund your golden years. Your future self will thank you!

So ladies, let’s stop making excuses and start investing with just Rs.500 every month towards your retirement and other goals. The sooner you start, the sooner you’ll achieve financial freedom!

FAQs:

Can I start a SIP of 500 per month?

Yes, absolutely! You can start an SIP with just 500 rupees per month. Even a small amount when invested regularly for a longer duration i.e. a few decades grows substantially through the power of compounding and will help you become financially independent.

 How much will I have if I invest 500 a month?

If a 25-year-old woman starts an SIP 500 per month in a mutual fund portfolio with 14%* assumed returns,  by the time she’s 60, her total investment of just Rs. 2,10,000 would grow to a mind-blowing ₹56,16,243! The sooner you start, the more you will have.

Which SIP is best for 500 per month?

If you are investing for your long-term goals like retirement or buying a house, equity mutual funds are best suited to achieve them. You can check out LXME’s expert-curated portfolios and invest according to your goals.

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