5 March 2024

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Mutual fund SIP calculator

Mutual fund SIP calculator: Monthly SIP investment needed to become a crorepati in 10 years

Mutual fund SIP calculator: Mutual funds are subject to market risk, although this risk can be reduced by using a systematic investment plan, or SIP. This investment option allows an investor to choose monthly, quarterly, or half-yearly investment options, allowing an investor to accrue large amounts over time even if they do not have a lump sum amount for an upfront one-time commitment. According to tax and investment experts, one can become a crorepati or gain one crore in ten years if certain conditions are met. To reach this ambitious investing target, they will need to do things differently, even though they will not need to do anything different than mutual funds SIP.

How to become rich?

On how mutual fund SIP can help you get wealthy in the long run, “Mutual fund SIP is an important tool that enables an investor to get the average return provided by the equity market,” stated Kartik Jhaveri, Director of Wealth at Transcend Capital. It can be started with as little as $500. As a result, it is appropriate for those who do not have a large lump sum for a one-time investment. A disciplined investor can acquire a large corpus using SIP since long-term SIP provides a compounding benefit, i.e. interest on interest. So, the longer you wait, the greater the compounding benefit.”

Mutual fund SIP calculator

On the long-term return on mutual funds, Kartik Jhaveri stated, “One can expect at least 12% return on one’s investment in equity mutual funds.” However, if the time horizon is extended, it may rise to 15% or even higher.”

According to Kartik Jhaveri, if an investor invests for 15 years or more, he or she can expect a 15% or higher return on investment. However, for less than 15 years but more than 10 years, one should expect a mutual fund return of roughly 12%.

Also Read: HDFC Bank vs SBI vs ICICI Bank: Which special fixed deposit (FD) plan is best for Senior Citizens?

Mutual fund return calculator

Pankaj Mathpal, MD & CEO at Optima Money Managers, on how to acquire a 1 crore maturity sum via Mutual fund SIP calculator, said, “Genius don’t do different things, they do things differently.” A clever investor will use a SIP step up tool to accumulate the most money in the shortest length of time. A mutual fund SIP participant is urged to increase their monthly SIP in rhythm with their annual increment or gain in annual income.” There are different tools of Mutual fund SIP calculator.

Mutual fund SIP calculator

Mathpal said that the usual annual SIP increase suggested is 10%, but for such an aggressive 1 crore investment objective in 10 years, the yearly SIP step-up should be 15%. If an investor starts a monthly SIP of roughly 25,000 per month with a 15% yearly SIP step up, at a 12% annual mutual fund return, he or she will be able to acquire around 1 crore in 10 years.

In short, by beginning a mutual fund SIP calculator of 25,000, you can become a crorepati in 10 years.