SIP Investment: In today’s time, the most popular method of mutual fund investment has become the Systematic Investment Plan (SIP). Its biggest advantage is that it allows investors to build a large fund over a long period with small amounts. Generally, investing through SIPs can yield an estimated return of 12 to 14 percent over the long term, although this depends entirely on the performance of the stock market.
It is worth noting that in an SIP, a fixed amount is invested in a mutual fund every month. Due to market fluctuations, units are sometimes available cheaply and sometimes expensively, which balances the average cost of investment over the long term. This is why SIPs are considered a disciplined and safe method of investment.
Read Here: Top 5 smartphones on Amazon have prices under ₹10,000 check out the list
The math behind accumulating ₹15 lakh with a ₹3000 SIP
If an investor starts a SIP of ₹3000 every month and receives an average annual return of 12 percent, their fund can reach around ₹15 lakh in approximately 15 years. During this period, the investor’s total deposited amount is approximately ₹5,40,000, while the remaining amount is added through compounding. This example shows that with time and patience, even small savings can yield big results.
What is a Hybrid Mutual Fund?
Hybrid mutual funds are for investors who do not want to take on too much risk. This fund invests in both equity and debt, which balances the risk. The equity portion helps in increasing returns, while the debt portion provides stability to the investment.
Read Here: BTEUP Result 2026 Released – Result Link Active at bteup.ac.in; 644 Students Awarded Zero
Returns from Hybrid Funds
Since hybrid funds also have a debt component, the possibility of getting as high returns as equity funds is less. Nevertheless, this fund is considered a better option for those who want a balance between risk and return.
Should you invest in a Hybrid Fund?
If you are looking for an investment option that is not as risky as a pure equity fund, then a hybrid fund can be a wise choice. However, don’t base your investment decision solely on returns when choosing a mutual fund. It’s crucial to understand your financial situation, goals, and time horizon. Seeking advice from a qualified financial advisor before investing is always recommended.