SIP: If you are in SIP (Systematic Investment Plan – systematic investment strategy) mode, you can begin investing with a minimum of Rs. 500 monthly. You ought to allocate your funds in this manner on a monthly basis. With this, over time, that is, in several years, wealth will grow unexpectedly. Particularly in mutual funds, wealth will only increase through the power of compounding effect (compound interest). That is encompassing interest on your investment and interest on that interest. Thus, it can be concluded that returns will grow even more as time goes by. Now, let’s examine the mutual fund schemes that have yielded over Rs. crore in 15 years for those who invested Rs. 10 thousand monthly.
SBI Small Cap Fund
Over the past 15 years, it has provided an average annual return of 24.03 percent. With this, an investment plan of Rs. 10 thousand has converted to Rs. 1.35 crores.
Simultaneously, the DSP Small Cap Fund has converted a SIP of Rs. 10 thousand in rupees. 1.16 crore over the span of 15 years. In this case, the yearly average returns amount to 22.33 percent.
Simultaneously, Franklin India Small Cost Fund has also provided outstanding returns. Here, individuals who put in a SIP of Rs. Every month, 10 thousand has totaled Rs. 1.13 crore over a duration of 15 years. In this case, the XIRR has reached 21.97 percent.
The Quant Small Cap Fund has provided an average return of 21.71 percent. With this, a systematic investment plan of Rs. 10 thousand every month has generated Rs. 1.10 million.
Kotak Small Cap Fund
In contrast, Kotak Small Cap Fund has transformed a Rs 10,000 SIP into Rs 1.08 crore over 15 years, achieving an average return of 21.52 percent.
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