Mutual funds have become the favorite investment option of investors today. Most people choose SIP to invest in it. Through SIP, you invest in installments, which reduces the investment amount and by investing little by little, a big fund can be created.
However, you have to be patient while investing through SIP. Today we will understand with the help of SIP calculation how long will it take for a SIP of Rs 5000 every month to generate a fund of Rs 20 lakh?
If a person invests Rs 5000 every month and wants to create a fund of Rs 20 lakh, then at the rate of 12 percent return, he will have to invest for 14 years. In these 14 years your principal amount alone will become Rs 8,40,000. With this you can get Rs 13,42,000 only in returns. After 14 years, you can get Rs 21,82,000 at 12 percent return.
This fund gave the highest return?
Nippon India Taiwan Equity Fund has become the highest returning fund of the country this year. It has given 41 percent returns in one year. Its expense ratio is 1.04 percent. Also its AUM is Rs 421.5085 crore.
Along with this, Aditya Birla SL Intl. The equity fund has given 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.
Nippon India Taiwan Equity Fund
Aditya Birla SL Intl. equity fund
ICICI Pru NASDAQ 100 Index Fund
Motilal Oswal Nifty India Defense Index Fund
Aditya Birla SL Nifty India Defense Index Fund
However, it is said that one should invest not only by looking at the returns but also by keeping the risk factors in mind.
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