SIP Investment– Rs 10,000 Investment Created Rs 2 Crore Through this Magic, Know How

SIP Mutual Fund: Many people are investing in mutual funds instead of directly in the stock market. Becoming a millionaire through SIPs in mutual funds is possible, but requires discipline, patience, and a sound strategy. One such fund is the Canara Robeco Emerging Equities Fund. This scheme has turned investors with SIPs of just 10,000 rupees into millionaires.

Canara Robeco Emerging Equity Fund has turned a monthly SIP of just Rs 10,000 into Rs 1.9 crore in 20 years. If an investor had invested Rs 10,000 monthly in this scheme for even 10 years, their wealth would have grown to Rs 28.47 lakh today.

Launched in March 2005, the scheme falls under the category of large and mid-cap equity funds. This fund was launched on March 11, 2005. It uses a bottom-up stock investing strategy. This fund invests in stocks of mid-cap companies that have the potential to become future leaders.

Where has the scheme invested?

This mutual fund scheme includes shares of major companies such as ICICI Bank, Indian Hotels, and Bharat Electronics. As of January 31, 2025, the fund’s AYM was Rs 23,339 crore. The scheme’s Regular Plan Growth option has a CAGR return of 19.05%, 16.47%, and 18.01% over the past 5 years and 10 years, respectively. Currently, the scheme’s portfolio consists of 47% large-cap stocks, 35% mid-cap stocks, and 16% small-cap stocks.

Before starting a mutual fund SIP investment, there are some important things to keep in mind. SIP is a highly disciplined investment tool that requires you to continue investing every month without delay. The longer you invest in SIP, the more significant your return. Capital gains tax is also payable on SIP returns. Considering tax liability, it’s beneficial to continue SIP for as long as possible.

If an investor starts a monthly SIP of Rs 10,000 and steps it up at 7% annually, then after 20 years, at a 12% return, a fund of Rs 1.48 crore will be created. Similarly, if the investor initially invests a lump sum of Rs 5 lakh in an equity mutual fund along with this monthly SIP , then at a 12% annual return, a fund of Rs 48 lakh will be created in 20 years. Thus, with the combination of lump sum investment and monthly SIP, a fund of Rs 1.96 crore will be created in 20 years. If this investment is continued for one more year, then due to the power of compounding, this amount can reach Rs 2.24 crore.