Want to make good money? But cant figure it out how? Then this article is for you. Mutual fund SIPs are super popular among investors, and it’s easy to see why—they can offer solid returns. However, keep in mind that these returns can vary based on market changes.
If you’re looking to build a fund of Rs 1 crore, investing through a mutual fund SIP is a straightforward approach. SIPs allow you to invest in smaller amounts over time, making it easier to manage your finances. Plus, you have the flexibility to pause your investments whenever necessary, which is handy during emergencies when saving might be tough.
To reach that Rs 1 crore goal, you can expect an estimated return of around 12 to 16 percent from SIP mutual funds. Just remember, the actual return will depend on market conditions and the specific mutual fund you choose.
12% Return – To achieve an estimated return of 12%, you would need to invest Rs 45,000 each month. If you stick to this plan, your investment could grow to Rs 1 crore in 10 years. Just remember, market fluctuations can impact your returns, and a portion of your total investment will be subject to taxes.
15% Return – If you aim for a 15% annual return by investing in a mutual fund SIP, your monthly investment would need to be Rs 39,000. This could lead to a fund of Rs 1 crore after 10 years. Keep in mind that, in addition to taxes and market volatility, there may also be some fees involved.
Is Investing in SIP a Good Idea?
Experts recommend diversifying your portfolio. This means including a mix of both secure and riskier investments. For safer options, consider things like post office schemes, government schemes, or fixed deposits. If you want to lower your risk even more, debt mutual funds or hybrid mutual funds could be good choices.
What is SIP?
SIP stands for Systematic Investment Plan. It allows you to invest in mutual funds in a structured way, making regular contributions over time. You can choose how much to invest and when to make those investments through SIP.
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