Mutual funds are currently a preferred investment option for investors. Most people choose SIP for investment. SIP basically provides the opportunity to invest in installments and reduces the investment amount. As a result, it is possible to create a large fund even through small investments. If the investment in SIP is long-term, the continuous and systematic savings will increase. To illustrate, if one invests Rs. 5000 every year, a fund could be created with Rs. 20 lakhs as the end goal, but we need to identify how many years the fund will take to reach its target.

By investing Rs. 5000 each month for 14 years with a fixed annual interest rate of 12 percent, the investor will build the Rs. 20 lakh fund at the end of that period. Therefore, after 14 years, the investor’s principal (initial) investment of Rs. 8,40,000 will have increased to Rs. 1,34,20,000 as a result of the accumulated interest after 14 years at an annual interest rate of 12 percent, equal to the total amount of Rs. 2,18,20,000, which includes both principal and interest.

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Which fund is the best?

1 Nippon India Taiwan Equity Fund: This year, it has been named the best performing fund in India. In this case, it has given 41 percent returns in one year. The expense ratio of this fund (the expense ratio is the annual maintenance charge that is charged for expenses in a mutual fund) is 1.04 percent and the AUM (Assets Under Management, which indicates the size and performance of the fund) is Rs 421.5085 crore.

2 Aditya Birla SL International Equity Fund: It has given 28.70 percent returns in one year, but the expense ratio of this fund is 2.08 percent, which is almost double the expense ratio of Nippon India Taiwan Equity Fund.

3. ICICI Pru Nasdaq 100 Index Fund: Assets under management (AUM) – Rs 2664.759, Expense ratio – 0.61 percent, One-year return – 27.57125155.

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4. Motilal Oswal Nifty India Defense Index Fund: Assets under management (AUM) – Rs 3892.074. Expense ratio – 0.44 percent. One-year return – 26.72056534.

5. Aditya Birla SL Nifty India Defense Index Fund: Assets under management (AUM) – Rs 766.371. Expense ratio – 0.31 percent. One-year return – 25.99766475.

However, this report is based on statistics only, it would be wise to consult a financial advisor before investing, as an experienced advisor can make a well-thought-out recommendation based on your personal risk tolerance.