Mutual Fund Calculator: SIP or Systematic Investment Plan is an investment option offered by mutual funds that enables an investor to make monthly, quarterly or half-yearly investments and accumulate a large amount over a long period. For example, one can become a millionaire after starting a monthly SIP 1,000. However, there are some mutual fund investments that an investor needs to maintain while investing.
Speaking on how an investor can achieve the investment goal 1 crore starting from monthly mutual fund sip Of 1,000; Jitendra Solanki, SEBI registered tax and investment expert said, “For long term mutual fund investment, one who is in the early stage of their career, SIP is a good option. However, one is advised to keep their monthly investment amount. Keep increasing your income by using annual SIP step-up.
The SEBI registered expert said that the annual SIP step-up helps an investor to keep his monthly SIP amount at its lowest level.
How much annual mutual fund SIP step-up can sustain; Jitendra Solanki said that depending on the monthly earnings and expenses of the earning person, it can range from 10 percent to 15 percent. in order to obtain Investment target of 1 crore by starting investment with 1,000 per month, Solanki said, adding that one has to continue investing for 25 to 30 years, with annual SIPs increasing by 10-15 per cent. He said that after investing in equity mutual funds for 25 to 30 years, at least 15 per cent annual return on investment can be expected.
What is the return one can expect from Monthly Equity Mutual Fund SIP? 1,000 for 30 years; Vineet Khandare, CEO & Founder, MyFundBazaar India Private Limited said, “Having a monthly Equity Mutual Fund SIP amount 1000 for a tenure of 30 years, one can expect an investor’s corpus 63,55,414, assuming RoR as 15 per cent.”
However, using the SIP step-up of 10 per cent per annum, the mutual fund return calculator shows that one would get the maturity amount approx. 1.27 crore if the annual step-up is maintained at 10 per cent.
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SIP calculator further stated that if an investor starts with monthly SIP 1,000 and continues to use 15 per cent annual step-up for the entire investment tenure, in that case the 15 per cent annual return on approx. 2.25 crore maturity amount.
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When asked about equity mutual fund schemes which can give 15 per cent return after investing for 30 years; Vineet Khandare of MyFundBazaar India listed the following mutual fund schemes:
Small Cap Funds: SBI Small Cap Fund – Regular Growth, CAGR – 20.66 per cent;
Mid Cap Funds: Aditya Birla Sun Life Mid Fund Plan – Growth Regular Plan, CAGR – 15.26 per cent; And
Large Cap Funds: HDFC Top 100 Fund – Regular Plan Growth, CAGR – 15.38 per cent.
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