Be it mutual funds or the stock market, many investors are investing in them without worrying about the risks. This is because these investors are looking for higher returns. Perhaps this is why the number of people investing in these options is constantly increasing. One such mutual fund, the Nippon India Growth Fund, has turned investors into millionaires.
This is a mid-cap equity fund, which mainly invests in mid-cap stocks. When it comes to mid-cap stocks, the risk increases here. This mutual fund of Nippon comes in the category of very high risk, but it is also very good in returns. This mutual fund has been giving good returns for the last several years. This fund has converted a SIP of Rs 1100 per month into a fund of more than Rs 5 crore. That is, investors have become millionaires.
What is a mutual fund?
Just like many people invest money in banks or FDs, money is also invested in mutual funds. It is issued by a bank or financial institution. It gives more interest than a bank or FD. In this also you can invest money in a lump sum or every month. There are many types based on risk. The banks or institutions that issue mutual funds invest the money received from investors in equity, bonds, money market etc.
How to make 5 crores from Rs 1100?
Nippon India Growth Fund has made those investors millionaires who invested in it for the long term. In this, a monthly SIP of Rs 1100 has created a fund of more than Rs 5 crore in 29 years. This fund was started on 8 October 1995. It has given an average return of 23.75 per cent annually since its inception.
For example, If you had made a monthly SIP of Rs 1100 when this fund was started, then the total investment in these 29 years would have been Rs 3,82,800. At an annual return of 23.75 per cent, you would have got around Rs 5.15 crore from interest alone in these 29 years. In such a situation, your total fund would have been around Rs 5.19 crore in 29 years. That means you would have become a millionaire in these 29 years.
How correct is it to invest in mutual funds?
Mutual funds are linked to the stock market. In such a situation, investing in them is risky. Experts say that never invest in mutual funds for the short term. Whenever you plan to invest in it, make it for the long term i.e. 10-15 years or more. In such a situation, the chances of getting good returns are higher.
Here’s a quick guide to apply for a mutual fund online:
- Choose Platform: Go to the mutual fund company’s website or a third-party platform (e.g., Groww, Paytm Money).
- Complete KYC: Verify your KYC with PAN and Aadhar.
- Create Account: Sign up and log in.
- Select Mutual Fund: Search and select the fund.
- Choose Investment Type: Decide between SIP (monthly) or lump-sum (one-time).
- Link Bank Account: For automatic deductions.
- Confirm & Pay: Review details, submit, and track your investment.
Disclaimer: For any financial investment anywhere on your responsibility, Times Bull will not be responsible for it.