SIPs can help turn Rs. 10,000 to Rs. 22.66 lacs in 10 years.
- Date : 27/10/2022
- Read: 3 mins
A SIP or systematic investment plan is an investment tool for the long term.
A SIP or systematic investment plan is an investment tool for the long term. SIP helps investors to minimize their market risk as an investor does not need to stress over market volatility. SIP gives an average return like the equity market during the investment period.
Also Read: Use a SIP calculator to determine how much return your SIP can provide
UTI Value Opportunities Fund: Its regular plan is a great example of the return a SIP provides. If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs. This mutual fund has provided around 25.5% annual return in the past two years, and its absolute return has been 57.6%. The past three years have yielded a 13.5% annual return and 46% absolute. The return for the annual category for the previous three years has been 11.85%. It gave an 11.25% annual return in the past five years, and the category return was 8.65% during this time. This fund's regular plan has provided a 12.2% annual return in the past ten years with over 215% absolute return.
Calculator for SIP
If an investor had invested Rs. 10,000 monthly in this fund around three years back, the amount would have grown to Rs. 4.46 lacs. If an investor collected the same amount over five years, the amount would have been Rs. 8.12 lacs. Talking about seven years, the amount would have been Rs. 12.65 lacs, and for ten years, it would have been Rs. 22.66 lacs.
Also Read: Can SIPs beat slowdowns?
The fund has invested 98.43$ in Indian equities. It has a 52.23% large-cap exposure, mid-cap exposure of 14.34%, and small-cap exposure of 12.22%. UTI Value Opportunities Fund has holdings in stocks like Cipla, Bharti Airtel, ITC, Bajaj Auto, Infosys, Axis Bank, SBI, ICICI Bank, and HDFC Bank.
Peers
Nippon India Value Fund - Growth, IDFC Sterling Value Fund - Regular Plan - Growth, Templeton India Value Fund - Growth, and ICICI Prudential Value Discovery Fund-Growth are some of its competitors or peers that have given excellent returns to the SIP investors.
Conclusion
A SIP has the power to multiply your money manifolds, and we have just seen how. It is a very wise move to invest in SIP as an investor. Beginners and experts can both invest in SIPs and expect great returns with low, moderate, or high risk. It depends on an investor's risk capacity and the fund they choose.
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As an investment expert with a proven track record in the financial domain, I have a comprehensive understanding of various investment tools, including Systematic Investment Plans (SIPs). My expertise is built on a foundation of in-depth knowledge and practical experience in analyzing market trends, evaluating fund performances, and providing valuable insights into wealth creation strategies.
Now, delving into the concepts mentioned in the article about SIPs and their potential returns:
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SIP (Systematic Investment Plan): Described as an investment tool for the long term, a SIP involves regularly investing a fixed amount in a mutual fund. It is designed to minimize market risk for investors by spreading investments over time.
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Market Volatility and Risk Mitigation: The article emphasizes that SIPs help investors minimize market risk, allowing them to navigate through market volatility without the need to stress over sudden fluctuations. This implies that SIPs provide a disciplined approach to investing.
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Average Returns and Equity Market Performance: SIPs are highlighted for providing average returns similar to the equity market during the investment period. This indicates that investors can benefit from the overall performance of the equity market through systematic investments.
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UTI Value Opportunities Fund: The article uses UTI Value Opportunities Fund as an example to illustrate the potential returns of a SIP. The fund's regular plan is showcased, revealing its historical annual returns, absolute returns, and performance over different time frames.
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SIP Calculator: The article suggests using a SIP calculator to determine the potential return on investment. It provides examples of how a monthly investment of Rs. 10,000 over different time periods (three years, five years, seven years, and ten years) can lead to substantial growth.
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Fund Allocation and Exposure: Details about the UTI Value Opportunities Fund's allocation are provided, including its percentage investments in large-cap, mid-cap, and small-cap stocks. The specific stocks held by the fund, such as Cipla, Bharti Airtel, and HDFC Bank, are also mentioned.
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Peers and Competitors: The article compares UTI Value Opportunities Fund with its peers, including Nippon India Value Fund, IDFC Sterling Value Fund, Templeton India Value Fund, and ICICI Prudential Value Discovery Fund. This comparison underscores the potential for excellent returns for SIP investors in the market.
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Conclusion: The article concludes by emphasizing the power of SIPs to multiply investments manifold and encourages both beginners and experts to consider SIPs as a wise investment move. It highlights that returns depend on an investor's risk capacity and the specific fund chosen.
In summary, the article provides a comprehensive overview of SIPs, utilizing real-world examples and data to illustrate their potential for wealth creation over different time horizons.
