These Rs 500/ month SIP from SBI Mutual fund made investors wealthier with highest annualised yield of 21% in 10 years
These mutual fund SIPs from the house of SBI have given the highest annualised return of up to 21 per cent,
Rs 100 SIP makes more sense as you can start the mutual fund investment route with the bare minimum deployment of funds.
Can be a wise option for novice and small investors
For small investors with no hands on in mutual fund investment, this asset class with the lowest investment can be the best route in the initial years.
The 100 Rs SIP capitalises on all SIP benefits such as power of compounding, rupee cost averaging and discipled investment
The Rs 100 SIP offers all the benefits of a mutual fund investment including, rupee cost averaging, disciplined investing as well as Compounding benefits.
SIP route with a small investment commitment let's you build wealth over longer term
Regardless of the amount, a continued investment over a longer time frame will make your journey smooth.
Step-up SIP always available
After getting hands-on, the investor can then increase his investment commitment by increasing the SIP amount at a fixed return at a regular interval.
SBI Contra Fund Direct Plan (G)
This SIP from the house of SBI Mutual fund can be kick-started with Rs 500. The annualised yield from the fund in 10 years is at 20 per cent. Meaning if you start a SIP for Rs 500 per month with total investment at Rs 60000- your investment would grow to Rs 1.72 lakh.
SBI Technology Opportunities Fund Direct Plan (G)
This fund can also be started with Rs 500 and an investment outlay of Rs 60000 via the SIP route in the fund will grow to Rs 1.70 lakh- offering an annualised yield of 19.8 per cent
SBI Small Cap Fund - Direct Plan (G)
The fund can again be invested into via the SIP route for just Rs 500. Rs 500 per month investment in the fund has grown to up to 1.78 lakh- resulting in an annualised yield of 20.71 per cent.
SBI Infrastructure Fund- Direct Plan (G)
This can be again invested into via the SIP route with the investment amount of Rs 500 per month turned into Rs 1.74 lakh- meaning an annualised return of 20.2 per cent.
SBI PSU Fund-Direct Plan (G)
Rs 500/month has grown to Rs 1.678 lakh in 10 years
Conclusion
For comparing investments made over a longer term, annualised yield is used. This return metric also referred as a Compound Annual Growth Rate (CAGR) measures the rate of return over an investment period. It is a smoothened rate because it measures the growth of an investment as if it had grown at a steady rate, on an annually compounded basis.