Mutual Fund SIP Calculator: By maintaining 15% annual step-up, saving Rs 1000 per month for about 26 years can give an investor Rs 1 crore at the time of maturity.
Mutual Fund SIP Calculator. Mutual funds are subject to market risk but bring the risk factor to the lowest level for long-term equity mutual fund investments. According to tax and investment experts, long-term mutual funds offer higher returns while the method of investment is a systematic investment plan or SIP, which reduces the risk involved.
A Mutual Fund SIP plan helps an investor to grow a large amount through small investments without worrying about market volatility and market timing. Experts say that in the long run, you can save Rs 33 per month i.e. Rs 1000 per month and deposit Rs 1 crore.
Invest Rs 1000 a month
Speaking on long-term mutual fund investments, Sebi-registered tax and investment expert Jitendra Solanki said that at least 12 per cent returns can be expected on long-term mutual fund investments. However, if the investment is for a very long period, the returns can go up to 15 to 16 per cent. Solanki says that if someone is 34 years old, then they can invest 1000 rupees every month for the next 26 years and deposit up to 1 crore rupees on retirement.
How Much Returns
Karthik Jhaveri, Investment Director at Transcend Capital said while talking to Mint says that one should increase one’s monthly SIP amount along with the increase in one’s income.
It helps an investor to meet his investment target in a short span of time. Since the monthly SIP is Rs 1000, I would advise the investor to maintain an annual step-up of 15%. This will help the investor to meet his investment target of Rs 1 crore in around 26 years, which is about 8 years less than the normal Rs 1,000 monthly SIP mode.
Hence, it would be an investor’s choice whether he opts for an annual step-up SIP or a normal monthly SIP, but it is sure that one can become a millionaire with a monthly investment of Rs 1,000.
One can invest in these When
asked about Mutual Fund SIP schemes, which can give 15 per cent per annum return over the long term, Vineet Khandare, CEO and Founder, MyFundBazaar, has listed some mutual fund SIP schemes. These include SBI Small Cap Fund, Aditya Birla Sun Life Mid Fund Plan & Growth Regular Plan and: HDFC Top 100 Fund Regular Plan Growth.
