You will be the owner of 44 lakhs at the age of 35!
The trend of investing in mutual funds through SIP has increased at a record pace in india in the last few years. In april 2016, where 3,122 crores were invested through SIP every month, now this figure has increased to 26,000 crores. That is, there has been an increase of more than eight times in the last few years. Actually, the biggest reason for this is its simplicity, investment of a fixed amount every month, that too without worrying about the market movement. This is the reason why today it has become the first choice of middle class and small investors.
A fund of 44 lakhs made through SIP
According to financial data, if an investor had done a SIP of 10,000 every month for the last 10 years, then today his investment could have reached 44 lakhs. Many top equity mutual funds have given an annual return (CAGR) of more than 20 percent in the last decade.
These top-10 funds gave the best SIP returns
According to the report of Financial Express, the leader among these mutual funds was 'Quant Small Cap Fund', which gave a CAGR return of 24.56 percent in 10 years. It was followed by Nippon india Small Cap Fund (22.93 percent) and Quant ELSS Tax Saver Fund (21.74 percent). Quant ELSS Tax Saver Fund was at number three, it has also given an annual return of 21.74 percent.
Dominance of midcap funds
Quant funds also dominated the midcap segment. Quant Mid Cap Fund has given an annual return of 21.60 percent. Motilal oswal Midcap Fund has performed well with a return of 21.47 percent. Apart from this, infrastructure funds were also not behind. Funds focusing on the infrastructure sector have also performed well. Among these, ICICI Prudential Infrastructure Fund has given an annual return of 21.37 percent. Whereas, Invesco india Infrastructure Fund and Franklin Build india Fund have also given an annual return of 20.67 percent and 20.60 percent. Nippon india Growth Fund has made it to the list of top 10 funds with an annual return of 20.38 percent.
Caution and patience are necessary
Financial experts believe that SIP is not a guaranteed return scheme. Market volatility definitely affects it, but in the long term these fluctuations get averaged, which gives better potential returns.
