SIP Calculator: Mutual Fund SIP is an option through which small savings can be converted into big corpus in the long term by regular investment. If we make it a habit to invest every month, then a fund worth lakh or crore of rupees can be easily created.
Since mutual fund investments provide compounding, one can grow their money fast.
In the last 10 years, SIP investors in small-cap equity mutual funds got an average annual return of up to 23.15 per cent.
Talking about the top two small-cap funds in the last 10 years, a monthly SIP investment of Rs 20,000 in one of them would have become more than Rs 1 crore. Know which fund is this?
Quant Small Cap Fund
This tops the list when it comes to SIP returns in the last 10 years.
The fund's last-year returns through SIPs are 38.49 per cent, but when it comes to returns in the last 10 years, it has given 27.2 per cent annualised returns.
Given that performance, if one would started investing Rs 20,000 monthly through SIP in this fund 10 years ago, they would have got Rs 1.01 crore with capital gains of Rs 77.18 lakh.
The expense ratio of the scheme is 0.77 per cent against the category average of 0.62 per cent.
The Asset Under Management (AUM) for the scheme is Rs 13001.83 crore and the NAV is Rs 238.83 as on January 12, 2024.
Nippon India Small Cap Fund
The annualised return of Nippon India Small Cap Fund in the last 10 years through SIP investment has been 25.7 per cent.
If someone would have started investing Rs 20,000 monthly 10 years ago in this scheme, the value of their corpus would have been Rs 93.81 lakh in present times.
The total investment during the entire period would have been Rs 24 lakh, while the wealth gain would have been Rs 69.81 lakh.
In this scheme, you can start SIP with minimum Rs 1,000.
Whereas the minimum lump sum investment is Rs 5,000.
The asset base of the scheme as of January 12, 2024 was Rs 44,939 crore and expense ratio was 1.53 per cent.
The risk grade in this fund is high.
When is the right time to start SIP?
AK Nigam, Director of BPN Fincap, says that SIP is a systematic method of investment.
Long-term investment in this can create tremendous profits. There is risk in this.
Therefore, the investor should decide to invest after looking at their income, target and risk profile.
He says, there is no good or bad time to start SIP.
When you start investing, that is the best time.
Whether the market is at peak or bottom, SIP can be started in both the conditions.
Whenever you start SIP, the investment in long term is almost the same. One good thing about it is that it can be started without any condition.
(Disclaimer: The performance of the funds is given here. This is not investment advice. Investing in mutual funds is subject to market risks. Consult your advisor before taking any investment decision.)
