SIP Tips: How many crores of funds can you make from a SIP of Rs 3000? Understand the complete calculation here..

Now Indians have become smarter and more aware of investment. They are now able to understand better where to invest and get more returns than traditional investments along with security. This is the reason why the number of people investing in mutual funds in the country is increasing rapidly. Due to giving higher returns than FD and other traditional investment schemes, people are turning to mutual funds in greater numbers. The most interest in these is being seen in those investors who want to avoid investing directly in the stock market. So let us now find out how much return a fund can give on an SIP of Rs 3 3,000. Let us understand the calculation by taking HDFC Balanced Advantage Fund as an example.

This fund was created on an SIP of Rs 3 3,000.
HDFC Balanced Advantage Fund was started on 1 February 1994. Since then, this fund has given an average return of 18.66 percent annually. If an investor had started a monthly SIP (Systematic Investment Plan) of Rs 3000 in this fund 30 years ago, then today his fund would have become about Rs 5 crore. If we look at this amount, then the invested capital would have been only Rs 10.80 lakh, but based on the annual return of 18.66 percent, this amount would have reached Rs 4.93 crore in the form of interest.

What do experts say?
Experts consider the HDFC Balanced Advantage Fund as a high-risk investment, so it is advisable to invest in it for at least 3 years or more. However, investors can start SIP in this fund with a minimum amount of only Rs 100, which makes it accessible to investors of every level.

The performance of this fund has also been excellent in the last year. It has given a return of 33.79 percent in the last year, while in three years this rate has been 22.63 percent annually. This fund has provided an annual return of 21.62 percent over a five-year average.