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mutual funds

Investing in mutual funds has become one of the most popular and easy investment methods today. Especially SIP (Systematic Investment Plan), which financial experts consider to be the best means to create a big fund in the long run. The specialty of SIP is that you invest a fixed amount every month, due to which you get the benefit of Rupee Cost Averaging and the returns are better in the long run.

Now if your aim is to create a fund of Rs 1 crore in the next 10 years, then it is important to know how much SIP you will have to do every month. This amount depends on the annual returns you get from your mutual fund. The higher the returns, the lower the monthly SIP you can make do with.

How much return will you get every year?

According to financial calculations, if the annual return on your investment is between 9% to 13%, then the SIP amount will vary. At 9% return, you will have to invest approximately ₹ 51,676 every month, due to which your total investment in 10 years will be around ₹ 62 lakh and the target will be achieved. At 10% return, the same target can be achieved with a monthly SIP of ₹ 48,817, in which your total investment will be around ₹ 58.58 lakh.

If your mutual funds give 11% annual returns, your SIP amount will reduce to ₹46,083 and the total investment in 10 years will be ₹55.30 lakh. Similarly, at 12% return, you will have to invest ₹ 43,471 every month and the total investment will be approximately ₹ 52.17 lakh. The best situation is that if the return is 13%, then with a monthly SIP of just ₹ 42,320 you can create a fund of Rs 1 crore in 10 years.

The right mutual fund will become a trustworthy partner.

It is clear from this that it is absolutely possible to achieve a big goal through SIP in the long term, but for this discipline, choosing the right fund, and regular investment are most important. The market is full of ups and downs, but consistent investing improves returns over time and also makes bigger goals easier to achieve. If you do proper planning on time, then even a big target like Rs 1 crore is within your reach.