5 Best Mutual Fund SIP Plans To Invest In 2021 For Beginners, First Time Investor For High Returns (2024)

FAQs

5 Best Mutual Fund SIP Plans To Invest In 2021 For Beginners, First Time Investor For High Returns? ›

According to Post Office RD Calculator, if you invest Rs 5,000 per month for five years the total return on your investment will be Rs 48,740 (with monthly compounding frequency). So the total amount that you will get after five years would be Rs 3,48,740.

According to Post Office RD Calculator, if you invest Rs 5,000 per month for five years the total return on your investment will be Rs 48,740 (with monthly compounding frequency). So the total amount that you will get after five years would be Rs 3,48,740.

Multi-cap schemes are more volatile than large-cap or mid-cap schemes, but they also have higher ROIs than both types of SIPs. These SIP with best for investing for investors who want high returns but don't mind taking on some risk with their investments.

This is also one of the best sip plans for 5 years and even shorter durations. It makes a perfect alternative to bank fixed deposits. If you start a SIP of Rs.10,000 for 5 years, you can expect it to become around Rs.6.81 lakhs. 96.8% of the investment is done in debt funds.

How much will I have if I invest $100 a month for 5 years? ›

You plan to invest $100 per month for five years and expect a 6% return. In this case, you would contribute $6,000 over your investment timeline. At the end of the term, your portfolio would be worth $6,949.

SIP investment

FV = Future value or the amount you get at maturity. For example, you invest Rs 1,000 a month in a mutual fund scheme using the systematic investment plan or SIP route. The investment is for 10 years, with an estimated rate of return of 8% per year. You have i = r/100/12 = 8/100/12 = 0.006667.

To create a corpus of Rs. 1 Crs in 10 years, investors should start a SIP of Rs. 43,500 per month or should start a SIP of Rs. 32,000 per month and increase this by 10% every year.

With SIP, you get to start investing with as little as INR 500 a month. If your earnings are not very high or your savings are low, you can still take advantage of or be a part of the growth of the Indian stock market by choosing to invest in SIP plans in various mutual funds.

HDFC Bank Ltd., ICICI Bank Ltd., Housing Development Finance Corpn. Ltd., Axis Bank Ltd., and State Bank of India are the fund's top five holdings. The AUM is low at Rs 333 Crore and NAV stands at Rs 54.3.

Length of Investment

For example, an investor who holds their portfolio for 10 years will put $60,000 into it (10 years of investing x 12 months per year x $500 per month), while an investor who holds the same portfolio for 20 years will contribute $120,000 worth of capital.

What if I invest $5,000 a month in SIP for 20 years? ›

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

Conclusion. It is crucial to implement 50:30:20 rule in your financial plan. One should invest at least 20% of their salary in mutual funds and can later increase whenever possible.

And when it comes to investment advice for newbies, mutual funds are frequently the most popular choice because they not only have a history of producing higher returns than other instruments, but they also enable inexperienced investors to select from a variety of funds with the added benefit of portfolio ...

Lastly, please remember that there is no ideal moment to start or end your SIPs because the market is unpredictable. This is due to the uncertainty around whether the current high will signal the start of a downward trend or the beginning of new highs.

ICICI Prudential Value Discovery Fund

Based on your risk appetite and long-term financial objectives, this could be one of the best mutual funds for investing ₹1,000 per month in SIPs. Dharmesh Kakkad and Sankaran Naren are the current fund managers of this scheme.

What is the value in 5 years of $1,000 invested today? ›

Formula and Calculation of Future Value

For example, assume a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually. In this case, the FV of the $1,000 initial investment is $1,000 × [1 + (0.10 x 5)], or $1,500.

With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.

Answer and Explanation: The calculated present worth of $5,000 due in 20 years is $1,884.45.

A monthly SIP of Rs. 5000 for 3 years would have become Rs. 2.38 Lakhs from the total of Rs. 1.8 Lakhs invested over the time period.

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

If you'd invested $600 in a lump sum and allowed it to grow for 10 years at 10.3% a year, you'd have almost exactly $1,600. Stock market returns are never guaranteed, of course. But the longer your holding period is, the higher your odds of success are.

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore).

' Here, you will not incur income tax on SIP returns if they are below ₹1 lakh for a financial year. This rule will apply to long-term and short-term capital gains from equity-based mutual funds.

Your monthly investments of Rs 15,000 in equity funds can grow into Rs 4.8 crore in 30 years! This is the magic of compounding at play. Compared with other options like fixed deposits, PF, etc. (where you won't get more than 7-8% returns), equity funds are great for real inflation-beating wealth creation.

Which type of MF is best for SIP? ›

The longer your investment, the lesser the risk. Hence, the best time to start a SIP is when you want to invest in an instrument with a lower risk profile.

A regular SIP best suits all kinds of investors who have a regular source of income and who prefer saving up for a secured future. A step-up SIP helps reach the financial goal faster and helps in accumulating a higher amount of corpus as the investment keeps increasing every year.

There are around 5 primary types of SIPs that you can invest in - regular SIP, flexible SIP, top-up SIP, trigger SIP, and perpetual SIP.

Rs 1 lakh SIP: It would take 5 years 10 months to reach Rs 1 crore with Rs 1 lakh monthly SIP in a mutual fund scheme. Increasing the SIP amount by 5% annually would let you reach Rs 1 crore in 5 years 5 months at 12% interest.

Yes. You can cancel a SIP any time you want. - Cancelling your SIP will only stop future installments. - It will not redeem your current investments.

What if I invest $1,000 a month in SIP for 30 years? ›

On how much return one can expect from one's monthly equity mutual funds SIP of ₹1,000 for 30 years; Vinit Khandare, CEO & Founder at MyFundBazaar India Private Limited said, "Keeping a monthly equity mutual fund SIP amount of ₹1000 for a tenure of 30 years, an investor could expect a corpus of ₹63,55,414, assuming the ...