Monthly Rs 20,000 SIPs in these 5 mutual funds turn into at least Rs 1.03 crore in 10 years
SIP investment in mutual funds can be done through the basic financial planning rule of 50-30-20. Popularised by Harward Law Professor and US Senator Elizabeth Warren, the 50-30-20 rule says that anyone should put 50 per cent of their monthly earnings towards essential items, 30 per towardss discretionary items, and the rest 20 per cent for savings and investments. So, if one opts for an SIP investment, they can invest 20 per cent of their savings in it. One may start with any amount and increase it by five or 10% annually through step-up SIP. It may help you generate a fund worth crores through SIP investment.
So, we take you through 5 mutual funds that have generated at least Rs 1 crore wealth in 10 years, with a monthly SIP of Rs 20,000.
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Quant Small Cap Fund - Direct Plan
The smallcap fund has an asset under management (AUM) of Rs 21,243 crore. Its net asset value (NAV) as on July 3 was Rs 291.8089. The fund over the 10-year period has given an annual lump return of 22.38 per cent, while its annualised SIP return has been 29.68 per cent. It means a Rs 20,000 monthly SIP started 10 years ago is worth over Rs 1.16 crore.
Quant Infrastructure Fund - Direct Plan
The small-cap fund holds an AUM of Rs 3,565 crore. The NAV rate of the fund as on July 3 is Rs 47.3452. The fund over the 10-year period has given an annualised lump sum yield of 21.26 per cent, while its SIP return on an annualised basis during the period has been 29.30 per cent. It means, a Rs 20,000 monthly SIP in the fund started 10 years ago is worth Rs 1,13,74,426.
Nippon India Small Cap Fund - Direct Plan
The smallcap fund from Nippon Mutual Fund House has an asset base of Rs 51,566 crore. The fund's NAV as on July 3 is Rs 194.0379. Over the 10 years, the fund has given an annualised lump sum yield of 25.40 per cent, while its SIP return in the same period has been 28.46 per cent. So, a Rs 20,000 monthly SIP started 10 years ago in the fund is now worth Rs 1,08,37,565.
Quant ELSS Tax Saver Fund - Direct Plan
The AUM of this ELSS fund is Rs 9,860 crore, while the NAV as on July 3 is Rs 446.5628. In the last 10 years, the fund has generated an annualised lump sum return of 25.77 per cent, while its SIP return in the same time frame is 28.18 per cent. The Rs 20,000 monthly SIP in the fund has grown to Rs 1,07,10,282 in the 10-year period.
Quant Mid Cap Fund - Direct Plan
The Quant Mid Cap Fund has an asset base of Rs 7,953 crore. The worth of its NAV as on July 3 was 275.9579. Over the 10 years, the fund has given an annualised lump sum yield of 22.10 per cent, while its SIP return on an annualised basis has been 27.42 per cent. It means a Rs 20,000 monthly SIP started 10 years ago in the fund has turned into Rs 1,02,78,637 in the 10 years.