Index fund- 30 years results of investing in index fund

Introduction: if you are a absolute beginner in the world of investing , you index fund is a tool or a investing instrument ,where you can start your journey and make at less 12% returns per annum in a long term , let me tell you how 

WHAT IS INDEX FUND : Index fund is a fund (portfolio) of a number of companies which is listed in a row or a manner in the terms of there market capitalization , like top50 , top500 , next top 50 ext.

how-to-invest-in-index-fund-in-india


It,s not a actively managed by the fund managers they just follow the pattern of the companies coming or going out from the list . that is why the expense ratio of these funds are less than actively managed funds .  

RISK IN INDEX FUND : 

The risk in index funds is very low even if nothing goes extremely dramatic ( earth quick , war etc.) in the country wheres index fund you are investing in can give you normally 12 to 15 percent return per annum in a long run.

TOP INDEX FUNDS : SENSEX , NIFTY 50 ,S&P 500


How time can make a huge different in your index fund  investing in index fund:

lets suppose your monthly income is 30000 bugs , and start saving 10000 every month and start investing in any index fund giving 12-13% returns every year in a long run. 


1.first 10 years of investing 10000 RS per month in index fund

Invested Amount

₹12,00,000

Est. Returns

₹11,23,391

     Total Value ₹23,23,391


2. second 10 years of investing 10000 rs per  in index fund ; 10+10

Invested Amount

₹24,00,000

Est. Returns

₹75,91,479

Total Value ₹99,91,479


3. last 10 years of investing 10000 rs per  in index fund ; 10+10+10


Invested Amount

₹36,00,000

Est. Returns

₹3,16,99,138

Total Value ₹3,52,99,138


Conclusion: As you can see in last 10 years it made a huge difference in you portfolio almost 3.6 cr rs by just investing 36 lakh rs in the term of simple sip, who says that you will not be a crorpati , its just your mindset. next time before starting any emi think about the s.i.p.

-hrst.


Location: India

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