Mutual Funds SIP: Become crorepati by investing near Rs 66 per day - Check tenure, return rate and other details
Mutual funds SIP return is around 14-16 per cent on investment for up to 30 years while for investments above 10 years but less than 20 years, it's 12-14 per cent.
Mutual Fund SIP (Systematic Investment Plan) is one of the most preferred choices among investors who believe in equity-linked investments. As per the investment experts, a mutual fund SIP would give better return if it is done for long term i.e. more than 10 years or even for thirty years if the investment has been started at the early phase of one's professional career. Expert opinion suggests that for a mutual fund SIP, returns on 10-15 years continuous investment is around 12 to 14 per cent while for investments above 30 years it can be in the range of 14 to 16 per cent, maybe 17 per cent — depending upon the market performance in the last four-five years of the investment.
Speaking on the mutual fund SIP returns Jitendra Solanki, a SEBI registered investment expert said, "If a mutual fund investment is done for long-term means more than 10 years, one can expect a return to the tune of 12 per cent to 14 per cent. However, if an investor hs started investing at an early phase of his or her professional career, it is advisable for them to continue investing for as long as they can be for 30 or more than 30 years."
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Asked about the return one can expect from a mutual fund SIP investment for up to 30 years Kartik Jhaveri, Director — Wealth Management at Transcent Consultants told Zee Business Online, "For mutual fund SIP investment up to 30 years, one can expect a return to the tune of around 14 per cent to 16 per cent and maybe 17 per cent if the market performs well in last four to five years of investment."
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So, taking the opinion of both investment experts if an investor invests Rs 2,000 per month or around Rs 66 per day for 30 years, one's net investment would be Rs 7.2 lakh and taking bottom level interest rate of 14 per cent the SBI mutual fund SIP calculator suggests that an investor would get at least Rs 1,11,14,111.26 as maturity amount on his or her investment.
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Hence, an investor can become a crorepati by investing around Rs 2,000 per month or around Rs 66 per day in mutual fund SIP for 30 years.