Mutual Fund SIP calculator: Genius doesn’t do different things; they do things differently. Similarly, a smart investor becomes a millionaire or a billionaire by investing wisely. For example, if a normal investor starts a monthly equity mutual fund SIP of ₹9,000 and keeps doing it religiously for 20 years, it will accumulate ₹1.36 crore. However, like a smart investor, if someone increases their monthly SIP in sync with their annual income, they can accumulate almost twice as much as a typical investor.
How to become rich via equity mutual funds?
Speaking on how a smart investor accumulates much more than a normal equity mutual fund investor, Pankaj Mathpal, CEO & MD at Optima Money Managers, said, “Equity mutual funds offer a monthly SIP with an annual step-up offer. However, a few people choose an annual step-up. This leads to almost half of the amount which they could have accumulated by opting for the annual step-up.”
On how much annual SIP step-up an investor can opt for, SEBI-registered tax and investment expert Jitendra Solanki said, “In normal conditions, an investor takes a 10% annual SIP step-up. However, it is advised to opt for a 15% annual step-up SIP. This has a significant impact on one’s net sum at the time of redemption because in a long-term time horizon of 20 years or more, one can expect at least 15% annual return on one’s money.”
Mutual fund SIP calculator
Assuming a 15% annual return on a mutual fund SIP of ₹9,000 per month, without annual step-up, the SBI Securities mutual fund calculator suggests that one would be able to accumulate ₹1,36,43,595 ( ₹1.36 crore) after 20 years.
Mutual fund calculator using SIP step-up
Assuming the same 15% annual return on a mutual fund SIP of ₹9,000 per month, with an annual step-up of 15% (as suggested by Jitendra Solanki), the SBI Securities mutual fund calculator suggests that one would be able to accumulate ₹3,64,92,972 ( ₹3.65 crore) after 20 years.
Mutual fund plans you may look at
On mutual funds that one can look at for whopping returns through SIPs, Pankaj Mathpal of Optima Money Managers listed out the following plans:
1] HDFC Flexi Cap Fund;
2] Nippon India Multicap Fund;
3] ICICI Prudential Value Fund;
4] Kotak Multicap Fund; and
5] Invesco India Large & Midcap Fund.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
