Mutual Funds: Nowadays, everyone invests in investments that offer maximum returns. Mutual fund SIPs are very popular among investors. There are many questions about SIPs. Many investors dream of accumulating 1 crore in 10 years through SIPs, but is this goal truly achievable? To answer this question, investor Ravi Kumar sought expert advice on his investment plan. Ravi is making a monthly SIP of 20,000 rupees and plans to increase it by 10% every year. He aims to accumulate a total of 1 crore rupees in 10 years. However, the funds he invests in and the strength of his portfolio will directly impact his goal.
How Strong Is Ravi Kumar’s Portfolio?
Ravi has wisely divided his mutual fund investments into different categories. His portfolio includes HDFC Multicap, ICICI Flexicap, SBI Balanced Advantage, Motilal Oswal Smallcap, and JioBlackRock Midcap Nifty 150 Index Funds. Investment expert Colonel Sanjeev Govila explains that this portfolio is well-balanced in terms of both risk and return. Flexcap and Midcap funds offer high return potential, while Balanced Advantage funds provide stability. This allows the portfolio to grow while taking risks and also protects against market downturns.
Recent Performance of Investment Funds
The ICICI Flexicap Fund has shown strong performance in recent months.
The HDFC Multicap Fund has delivered strong returns over three years.
The JioBlackRock Midcap Index Fund is a new fund, and its performance will depend on the index.
The Motilal Oswal Smallcap Fund has delivered good returns over the past year despite market fluctuations.
The SBI Balanced Advantage Fund is known for consistently delivering stable returns.
According to experts, the funds chosen by Ravi have the potential to perform well over the long term.
Will a ₹20,000 SIP amount to ₹1 crore?
According to calculations, if he starts a monthly SIP of ₹20,000 and increases it by 10% every year, assuming an estimated CAGR of 12%, his total investment in 10 years will reach around ₹6.5 million. This amount is significantly less than his target of ₹1 crore. Therefore, he has been advised to increase his monthly SIP.
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Expert Advice
After analysis, expert Govila believes that to achieve his ₹1 crore goal on time, Ravi should increase his SIP from ₹20,000 to ₹30,000 per month. He will also need to continue the annual increase, i.e., a 10% step-up investment. His portfolio is already on track, so simply increasing the SIP amount should help him reach his goal comfortably.