SIP Calculation: When will a ₹5,000 SIP grow into a ₹20 lakh fund? Read the calculations..

Mutual funds have become a favorite investment option for investors today. Most people choose SIPs (Systematic Investment Plans) for investing in them. Through SIPs, you invest in installments, which reduces the investment amount and allows you to build a large fund by investing small amounts over time.

However, you need to be patient when investing through SIPs. Today, with the help of an SIP calculator, we will understand how long it will take to build a fund of ₹20 lakh with a monthly SIP of ₹5000?

Calculation
Investment Amount - ₹5000 per month
Investment Return - 12 percent
If a person invests ₹5000 every month and wants to build a fund of ₹20 lakh, then at a 12 percent return, they will have to invest for 14 years. In these 14 years, your principal amount alone will become ₹8,40,000. Along with this, you can get ₹13,42,000 in returns alone. After 14 years, you can get ₹21,82,000 at a 12 percent return.

Which fund gave the highest return?
Nippon India Taiwan Equity Fund has become the highest-returning fund in the country this year. It has given a 41 percent return in one year. Its expense ratio is 1.04 percent. Its AUM (Assets Under Management) is ₹421.5085 crore.

Along with this, Aditya Birla SL Intl. Equity Fund has given a 28.70 percent return in one year. However, its expense ratio is 2.08 percent. This is double the expense ratio of Nippon India Taiwan Equity Fund.

Name

AUM

Expense Ratio

One-Year Return

Nippon India Taiwan Equity Fund

421.5085

1.04

41.58657852

Aditya Birla SL Intl. Equity Funds

273.5061

2.08

28.70772058

ICICI Pru NASDAQ 100 Index Fund

2664.759

0.61

27.57125155

Motilal Oswal Nifty India Defence Index Fund

3892.074

0.44

26.72056534

Aditya Birla SL Nifty India Defence Index Fund

766.3721

0.31

25.99766475

However, it is said that one should invest not only by looking at returns, but also by considering the risk factors.

(Disclaimer: The information on mutual funds provided here is not investment advice. Jagran Business is not providing investment advice. Mutual funds are subject to market risks, so please consult a certified investment advisor before investing.)

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