People can get huge returns in these mutual fund schemes.
People can get huge returns in these mutual fund schemes as they get compound interest.
With the increasing financial awareness among the young earning individuals, several investment schemes are buzzing in the market. One of them is Systematic Investment Plan (SIP). SIP is an investment channel offered by mutual fund companies to investors. People invest small amount in mutual fund SIP instead of lump sum amount. It is very attractive among young professionals as it requires small investments only monthly or quarterly with a large maturity amount.
People can get huge returns in these mutual fund schemes as they get compound interest. In compound interest, people get interest on their principal amount along with their accumulated interest over the years.
Financial experts agree that those who are serious about investing should start their journey with a mutual fund SIP calculator. The second step should be to identify the best mutual fund scheme that suits their investment range and gives them the desired returns.
One can get returns of up to Rs 10 crore through mutual fund SIPs at the age of 50, provided they start their investments early. Karthik Jhaveri of Transcend Consultants is quoted as saying by Mint, “Achieving ₹10 crore at the age of 50 is an ambitious target and for this the investor needs to start investing as early as possible at the age of 25.”
Karthik suggests equity mutual funds for this, noting that it maximizes returns as one can get at least 12 per cent returns during the investment tenure.
The mutual fund calculator, if one assumes 12 per cent return, shows that one has to start with a monthly investment of Rs 15,000 at 25 and increase it by 15 per cent annually to reach the target of Rs 10 crore. According to the mutual fund SIP calculator, at the age of 50, a person will get Rs 10.19 crore.
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