Mutual funds have become a favorite investment option for investors these days. Most people choose SIPs for investment. SIPs essentially offer the opportunity to invest in installments, which reduces the investment amount and can help build a significant corpus even with small investments. Investing in SIPs is a long-term commitment that will take time before you see any results. We can see how long it would take to reach ₹20 Lakhs with a ₹5000 annual investment by using an SIP calculator.

A person who invests ₹5000 each month for 14 years at a 12% interest rate will reach ₹20 Lakhs. This means that the principal amount of ₹840000 after 14 years will have grown to ₹1,342,000 simply through the interest gained during those 14 years bearing an annual interest rate of 12% which equates to an overall investment + interest of ₹2,182,000.

Which fund is the best?

The Nippon India Taiwan Equity Fund has been crowned this year as the top performing fund in India with a returns of 41% over the 1 year period. This fund has an expense ratio of 1.04% and an AUM of ₹421.5085 crore. The Aditya Birla SL International Equity Fund has also had a one year return of 28.70% but the fund has an expense ratio of 2.08%, which is twice the expense ratio of the Nippon India Taiwan Equity Fund.

Aditya Birla SL International Equity Fund has a one year return of 28.70%, but the expense ratio for this fund is also higher than Nippon India Taiwan Equity Fund. compared to 1.04%.

3. Name – ICICI Pru NASDAQ 100 Index Fund

  • AUM – 2664.759
  • Expense Ratio – 0.61
  • One-year Return – 27.57125155

Also Read –‘She has been nothing…’, Hardik Pandya made shocking comment about GF a controversial video

4. Name – Motilal Oswal Nifty India Defence Index Fund

  • AUM – 3892.074
  • Expense Ratio – 0.44
  • One-year Return – 26.72056534

Read More –Just this much investment will create a fund worth ₹1.13 crore, This mutual fund is amazing

5. Name – Aditya Birla SL Nifty India Defence Index Fund

  • AUM – 766.3721
  • Expense Ratio – 0.31
  • One-year Return – 25.99766475

Consulting a financial adviser would be prudent as an experienced adviser can make an informed recommendation based on your individual risk tolerance.