Mutual Fund SIP Calculator: Ravi Ujjwal is a 40 year old salaried professional and he is planning to invest for the higher education of his 6 year old daughter. As per Ravi’s assessment, he will need around 1 crore for his daughter’s higher education and he wants to meet this investment target by starting investing today. Ravi is in no mood to invest in direct stocks as he does not have much time to track his portfolio and fundamentals of listed companies. And most importantly, they do not even have a lump sum amount to invest.
Speaking on whether this investment target is viable or not; Jitendra Solanki, SEBI registered tax and investment expert said, “Since the investor does not want to invest in the direct stock market and his daughter is already 6 years old. She needs to deposit At the age of 1 crore in 10 years, his daughter will be eligible for higher education in about 16-18 years.”
Solanki said that Equity Mutual Fund in monthly SIP mode is the most suitable investment option which an investor can look for as he/she is short of lump sum amount for lump sum investment.
Resonating with Jitendra Solanki’s thoughts; Karthik Jhaveri, Director of Wealth, Transcend Capital said, “Investing in mutual fund SIPs for 10 years is expected to yield at least 12 per cent per annum. But, to achieve 1 crore in 10 years, investors are advised to use annual step-up in their monthly SIP. It helps an investor to start his investment with the lowest possible amount. Normally, the annual step-up advice is around 10-15%, but to achieve such an ambitious investment goal, I recommend an investor to maintain an annual step-up of 20% in the monthly SIP amount. Give.
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So, if Ravi or any other investor maintains a 20 per cent annual step-up for his 10-year SIP, assuming 12 per cent annual return, one has to start a monthly SIP 21,000, suggests SIP calculator.
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Mutual funds on SIP schemes that can give 15 per cent returns in 15 years; Vineet Khandare, CEO and Founder, MyFundBazaar India Private Limited, listed the following SIP plans:
Small-cap funds: SBI Small Cap Fund – Regular Growth.
Mid Cap Fund: Aditya Birla Sun Life Mid Fund – Plan – Growth Regular Plan.
Large-Cap Funds: HDFC Top 100 Fund – Regular Plan – Growth.
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