Investment of 5000 ₹ every month, after 10 years, you can create a fund of more than 11 lakhs; View calculations


SIP Calculation: A mutual fund is one of the SIP investment options through which you can earn equity-like returns even from regular small savings. If you get into the habit of investing your small savings each month, you can easily accumulate hundreds of thousands of rupees in the next few years. Currently, there is a lot of volatility in the stock markets amid rising interest rates around the world. Despite these ups and downs, mutual fund investors remain confident. A record Rs 12,976 crore was invested in mutual fund schemes through SIP in September 2022, according to AMFI data. At the same time, the number of SIP accounts also exceeded 5.84 crores. Experts believe that retail investors have strong faith in India’s growth story and therefore are not panicking about volatility.

₹5,000 Monthly SIP funds of 11 lakhs

Mutual fund investors invest heavily under the Systematic Investment Plan (SIP). As a result, despite huge market volatility, a record Rs 12,976 crores were invested in SIP mutual fund schemes in September 2022. In the long run, SIPs offer huge benefits to compound interest investors.

Suppose an investor makes 5,000 SIPs per month. He has a vision for 10 years. If we look at long-term SIP investments, many schemes are averaging 12 percent per year or more. According to the SIP calculator, if you invest $5,000 monthly and earn an annual return of 12 percent, then Rs 11.62 lakh housing can be easily built in the next 10 years. With this, the total investment of the investor will be 6 lakhs, and the estimated increase in wealth will be 5.62 lakhs.

SIP: What is an expert opinion

According to Deepak Jain, head of sales at Edelweiss Asset Management Company (EAML), the Indian economy is doing well. Thanks to this, the performance of our companies has also improved, and therefore we can make high profits from domestic shares in the long run. If SIP investors have a forecast of more than 10 years, they should invest in mid-cap funds. On the other hand, if their forecast is 5-10 years, then large and medium-sized funds may be the best option. In addition, lump-sum investors can invest in aggressive hybrid or balanced advantage funds.

A. K. Nigam, director of BPN Fincap, says the retail investor has matured. He understands the nature of justice. He is no longer worried about market volatility. He remains confident in India’s growth story. Despite the uncertainty at the global level, if we look at the growth rates worldwide, then India is still ahead. Therefore, the money goes to the retail segment. The retail segment will now continue to contribute capital well into the future. Now, investor awareness of SIP has also increased. They now know that market uncertainty is short-term. After a while, everything will be fine again.

(Disclaimer: Investments in mutual funds are subject to market risk. Please consult your advisor before investing)


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