Saturday, June 25, 2022

    Mutual fund compounding power, you can create a fund of over 10 lakhs by depositing 150 rupees daily, learn how

    Mutual Fund Investments: Mutual funds have remained a preferred investment option in changing times. Investing in mutual funds through SIP (Systematic Investment Plan) is the most popular. The compressive strength of SIP makes it the most attractive. Due to the compounding power, mutual funds continue to add interest to the principal and earn interest on it. So the amount of investment is increasing rapidly.

    You can deposit lakhs of rupees every day or every month by depositing a certain amount. For example, if you deposit Rs.100 or Rs.150 per day in SIP, you can raise millions of rupees in the long run. Here we will understand the math of these investments and returns.

    Fat return to deposit 150 rupees daily
    If you deposit Rs 150 daily in SIP, you will invest Rs 4500 in one month. Generally good mutual funds give an average annual return of 12 to 20 percent. Suppose you invest in a mutual fund, if they give an annual return of 12 percent, you will create a fund of over Rs 10.45 lakh in 10 years. If the annual return is 15 per cent, then your investment can reach up to Rs 12.54 lakh.

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    Some funds have given higher returns
    There are also some mutual fund schemes that fill investors’ bags. Their returns have been more than 25 percent in the last 10 years. For example, the 10-year annual return of Motilal Oswal Nasdaq 100 Exchange Traded Fund has been more than 26 percent. Similarly, Nippon India ETF Bank BES has returned more than 16 percent in 10 years. In the last 10 years, there have been many funds whose annual SIP returns have been more than 12 percent. The investor does not have to face direct market risk.

    Start with 100 rupees
    The specialty of SIP is that you can start investing with just 100 rupees per month. With this you can easily develop investment habits, minimize risk and get good returns.

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    More benefits than regularity in SIP
    Experts also say that if the stock market falls, do not close the SIP. If you close SIP during downtrend, you will not get the benefit of buying more mutual fund units at lower cost. Not closing the SIP during the fall will help you get more units. So your return will increase. Because when the market grows, the value of your unit will also increase. One more thing to keep in mind is to look at 5 to 10 years of performance to select the best funding.

    Tag: Investing Rs 30 per day in SIP, Joint venture, Return of Mutual Fund SIP, Sip, Systematic Investment Planning (SIP)


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