Greeting To Our Readers!
Mutual Fund Investments are subject to market risk, however at the same time, if carried in the right way for the right time, it can help you become crorepati at the time your investment in mutual fund mature!!
Mutual fund and tax experts say that investing in the mutual fund for long-term can help you accumulate wealth in corpus and also if decide to invest via SIP (Systematic Investment Plan) mode
Systematic Investment Plan in Mutual Funds gives investors a whooping amount through small investment without worrying about market volatility and timing the market. This happens because SIP allows investors to invest systematically, say they can start investing even a small amount of Rs 1000 per month in Mutual Funds.
Experts Words On SIP In Mutual Funds….
Experts say that investors by investing Rs 1000 per month in mutual funds per month for the long term, can end up accumulating a big corpus of Rs 1 crore!
If we talk about the returns on investment experts say In long-term mutual fund investment, one can expect at least a 12 percent return on one's investment. However, if the investment is for very long-term, then the return may go up to 15 to 16 percent, provided one has chosen a mutual fund SIP plan after proper homework.
What SIP Calculator Calculates……
SIP calculator calculates that if an investors start saving and investing Rs 1000 per month in mutual funds via SIP, with the expected 12% return rate, keep increasing your SIP amount by 10% annually, then at the end of 34 years’ time period, he/she may end up accumulating a corpus equal to ₹ 1,43,90,519.42 (1.44 Crores).
Understand it simply:
- Investment amount per month in Mutual Fund via SIP: Rs 1000
- Expected return rate: 12%
- Annual Step-up in SIP Amount: 10%
- Investment Period: 34 years.
- Total Invested Amount: ₹ 29,45,720.38 (29.46 Lakhs)
- Total Earnings: ₹ 1,14,44,799.03 (1.14 Crores)
- Total Corpus Value: ₹ 1,43,90,519.42 (1.44 Crores)
Below is a picture depicting the investment details in the above scenario:
Note: SIP or Step-up SIP Calculator, only calculates the future value of your SIP investments. However, it does not guarantee the returns calculated. The returns from your investment may differ from the calculated value.
Funds Meant For Long-term Investment………….
Well, as per experts and financial planners, Equity category mutual fund schemes are the best suitable funds if you are planning to invest for the long-term say more than 5 years.
Equity category funds that are, large-cap funds, small-cap funds, mid-cap funds, Flexi-cap funds, and many more retain the potential to yield 15 percent per annum in long term. Know more about the Best Equity Mutual Funds where you can consider investing in your long-term investment plan.
Keep reading our article and stay updated with the latest news about Mutual Funds!
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).