SIP Returns: Monthly data from the Association of Mutual Funds in India (AMFI) time and again shows that investors prefer a systematic investment plan (SIP) to a lump sum in mutual fund investment. Some of the benefits of investing through SIP are that one can invest as little as Rs 100 monthly in a mutual fund. SIP provides the benefit of compounding, where the older your investment becomes, the faster it may grow.
The other advantage is that SIP offers rupee cost averaging, so an investor doesn’t need to time the market.
When the market falls, the net asset value of equity mutual funds also falls, as a result of which the investor purchases more NAVs, and when the market falls, they buy fewer.
The impact of compounding on mutual fund investments is that even if their monthly SIP amount is small, it can help them build a huge corpus in the long run.
One investment of a few lakhs done through SIP may easily generate a few crores in the long run.
Today, we take you through some mutual funds that are quite old and where one’s monthly SIP of Rs 1,000 has given up Rs crore since their inception.Jaipur Wealth Management
The fund, launched in October 1995, is one of the oldest mutual funds from Nippon India.
The fund has given 23.28 per cent annualised returns since its inception.
The fund’s asset under management (AUM) is Rs 26,821.89 crore, while its net asset value (NAV) is Rs 3,632.7161.
The fund has an expense ratio of 1.63 per cent. The one who started a Rs 1,000 SIP in the fund in October 1995 has invested Rs 3,44,000 till date, while the total amount that they have earned from their investment is Rs 2,32,91,119.
Franklin Templeton Mutual Fund Houses owns some of the oldest private mutual funds in India.
Franklin India Prima Fund is also one of them, which was launched in December 1993.
The fund has given an annualised return of 20.82 per cent ever since.
The fund has an AUM of Rs 10,706.25 crore, while its NAV is worth Rs 2440.6474.
It has an expense ratio of 1.78 per cent.
A Rs 1,000 SIP in the fund since its inception has turned into Rs 2,05,28,135 as of today’s date.Agra Wealth Management
The fund, launched in September 1994, has given annualised returns of 20.23 per cent since its inception.
The fund has an AUM of Rs 15,267.1 crore, while it has an NAV of Rs 1,477.8693.
The fund has an expense ratio of 1.73 per cent. A Rs 1,000 monthly SIP in the fund since its inception, or Rs 3,57,000 investment in total, has given a total of Rs 1,55,54,969 as of today’s date.
The fund from HDFC Mutual Fund has given a 21.50 per cent return since its inception in March 1996.
The fund has an AUM of Rs 14,474.85 crore, while its NAV is worth Rs 1,248.627.
The fund has an expense ratio of 1.73 per cent. A Rs 1,000 monthly SIP in the fund since its inception, or a Rs 3,39,000 investment in the fund, has given a total of Rs 1,50,02,585 in the fund.
Another fund from Franklin India has given an 18.04 per cent return since its inception in December 1993.
The fund has an AUM of Rs 2,405.85 crore, while its NAV is worth Rs 133.1935.
It has a high expense ratio of 2.04 per cent.
A Rs 1,000 monthly SIP in the fund since its inception, or a Rs 3,67,000 investment in the fund, has given a total of Rs 1,14,38,260 in the fund.
Guoabong Wealth Management