SIP Calculation: Mutual funds have become the most popular investment option among investors today. Every investor wants a diversified portfolio, including both secured and unsecured instruments. Most people choose mutual funds over unsecured or market-linked schemes because their returns provide good long-term growth.
SIP, or Systematic Investment Plan, is the most preferred method of mutual fund investment. Starting with a small amount can build a large fund over the long term. This model of regular investment is extremely useful for students, working professionals, and beginning investors.
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How much can a SIP fund create?
If an investor starts a SIP of ₹3,000 every month and continues it for 10 years, the power of compounding can yield impressive returns. At an estimated annual return of 12 percent, the total investment will amount to ₹9 lakh in 10 years. However, with returns, the total fund can reach approximately ₹25,23,000. Of this, ₹16,23,000 is expected to be received solely as returns.
However, it’s important to note that mutual fund returns depend on market movements, so a fixed return is not guaranteed. Returns may vary.
What Experts Say
Choosing the right fund is always challenging when it comes to investing. Anirudh Gupta, CEO of Ashiana Financial Services, suggests funds that investors can invest in to strengthen their portfolios in November.
Funds Suggested for Investment in November
According to experts, select funds may prove to be good options for investors at this time. These include categories like large cap, flexi cap, and arbitrage. These funds provide a stable and balanced investment during market fluctuations.
Nippon India Large Cap Fund
Motilal Oswal Large & Mid Cap Fund
HDFC Flexi Cap Fund
ICICI Prudential Equity & Debt Fund
SBI Arbitrage Fund