Home / Money / Personal Finance / Mutual fund calculator: ₹1000 monthly SIP can make you a crorepati. Details here
Premium- Mutual fund return calculator: To achieve ₹1 crore investment goal by starting a monthly SIP of ₹1,000, one has to continue investing for 25 to 30 years maintaining annual SIP step-up of 10-15 per cent, say experts
Mutual fund calculator: SIP or Systematic Investment Plan is an investment option given by mutual funds that enables an investor to invest monthly quarterly or half-yearly and accumulate whopping amount in long term. For example, one can become a crorepati after starting a monthly SIP of ₹1,000. However, there are some mutual funds investment puns that an investor needs to maintain while investing.
Speaking on how an investor can achieve an investment goal of ₹1 crore by starting with a monthly mutual fund SIP of ₹1,000; SEBI registered tax and investment expert Jitendra Solanki said, "For long term mutual funds investment, one who is in its nascent phase of its career, SIP is a good option. However, one is advised to keep on increasing one's monthly investment amount with increase in one's income using annual SIP step-up."
The SEBI registered expert said that annual SIP step-up helps an investor keep one's monthly SIP amount at its lowest levels.
On how much annual mutual funds SIP step-up one can maintain; Jitendra Solanki said that it can be 10 per cent to 15 per cent depending upon the monthly earnings and spending of an earning individual. To achieve ₹1 crore investment goal by starting an investment with ₹1,000 per month, Solanki said that one has to continue investing for 25 to 30 years maintaining annual SIP step-up of 10-15 per cent. He said that after investing in equity mutual funds for 25 to 30 years, one can expect tog et at least 15 per cent annual return on one's investment.
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 RoR to be 15 per cent."
However, using SIP step-up of 10 per cent per annum, mutual fund return calculator suggests that one would get a maturity amount of around ₹1.27 crore if the annual step-up is maintained at 10 per cent.
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The SIP calculator went on to add that if an investor starts with a monthly SIP of ₹1,000 and keeps using 15 per cent annual step-up for entire investment period, then in that case at 15 per cent annual return one would get around ₹2.25 crore maturity amount.
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Asked about the equity mutual fund plans that may yield 15 per cent after investing for 30 years; Vinit Khandare of MyFundBazaar India listed out the following mutual fund plans:
Small Cap Fund: SBI Small Cap Fund - Regular Growth, CAGR - 20.66 per cent;
Mid Cap Fund: Aditya Birla Sun Life Mid Fund Plan - Growth Regular Plan, CAGR - 15.26 per cent; and
Large Cap Fund: HDFC Top 100 Fund - Regular Plan Growth, CAGR - 15.38 per cent.
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