When people talk about investing, they may think it involves putting in a lot of money.
But it’s not necessary to invest a large amount; you can invest based on your income.
The key is to continue investing for a long time and, if possible, increase your investments as your income grows.
There are schemes where you can start investing with just Rs 500 and build a substantial fund over time. Let’s explore a few such schemes:
SIP (Systematic Investment Plan)
You can invest in mutual funds through SIP. Although it’s linked to the market and considered risky, SIP has shown good returns in recent years, with an average return of around 12 percent.
You can start with Rs 500 per month and increase the amount as you can afford. This can lead to significant profits over the long term.
For example, if you invest Rs 500 per month in SIP, after 15 years at a 12 percent interest rate, you could have a maturity amount of Rs 2,52,288. After 20 years, it could be Rs 4,99,574.
PPF (Public Provident Fund)
If you prefer a safe investment, PPF could be a good option.
It’s a government scheme where you can start with Rs 500, and you need to invest a minimum of Rs 500 annually.
With a compounding interest rate of 7.1 percent, the scheme matures in 15 years. If you deposit Rs 500 every month, you could accumulate Rs 1,62,728 in 15 years.
Continuing the scheme for 5 more years could result in Rs 2,66,332 in 20 years.
SSY (Sukanya Samriddhi Yojana)
For those with daughters, investing in SSY, a government scheme for securing their future, is an option.
You can invest Rs 250 to Rs 1.50 lakh annually. With an 8.2 percent interest rate, the scheme matures in 21 years.
Investing Rs 500 every month for 15 years, your total expenditure would be Rs 90,000. On maturity, you could get Rs 2,77,103.
Post Office RD (Recurring Deposit)
Post Office RD is a good option with a 5-year term and an interest rate of 6.7 percent.
You can start with Rs 100, but if you deposit Rs 500 every month, your total investment would be Rs 30,000. With interest, on maturity, you could receive Rs 35,681.
