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Mutual fund SIPs (Systematic Investment Plans) have become quite popular among investors. Through SIPs, you can invest money in installments. Today, we will find out how long it will take to build a fund of 10 lakh rupees with a monthly SIP of 1000 rupees. Let's understand this with the help of calculations.

Calculation
Investment amount - 1000 rupees every month
Investment return - 12 percent

If you invest 1000 rupees every month through SIP and want to build a fund of 10 lakh rupees, then at a 12 percent return, you will have to invest for 20 to 21 years. In 20 years, your fund can reach 9.99 lakh rupees. If you invest for 21 years, your fund can reach 11,39,000 rupees. However, this completely depends on the fund you choose and the returns you receive.

The return on mutual funds can be higher or lower, as it depends on the stock market.

If we talk about the principal amount, you will deposit 2,52,000 rupees in 21 years with a 1000 rupee SIP. Similarly, in 20 years, your principal amount will be 2,40,000 rupees.

What is a Hybrid Fund?
Hybrid mutual funds are considered safer because they include both equity and debt. Having two different types of investment options provides balance. However, because it also includes debt, you will see only moderate or average returns.

In other words, through hybrid mutual funds, investors can invest in both debt and equity.

Top Funds: Which funds gave the highest returns in 5 years? Name    AUM    Expense Ratio    CAGR 5Y.
Quant Multi Asset Allocation Fund    4434.354    0.58    26.85795
ICICI Pru Multi Asset Fund    78179.11    0.64    22.072
ICICI Pru Equity & Debt Fund    49222.51    0.92    21.55942
Bank of India Mid & Small Cap Equity & Debt Fund    1320.716    0.68    20.60093
HDFC Balanced Advantage Fund    108205.1    0.73    19.62731
Mahindra Manulife Aggressive Hybrid Fund    2108.492    0.45    18.52563
Quant Aggressive Hybrid Fund    2077.936    0.8    18.26135
Nippon India Multi Asset Allocation Fund    10661.23    0.27    18.18321
Edelweiss Aggressive Hybrid Fund    3412.832    0.38    17.69686
JM Aggressive Hybrid Fund    785.3267    0.69    17.39601

Should you invest?
If you are looking for a balanced fund that is safer than an equity fund, then this fund is for you. However, the chances of getting attractive returns like those from equity funds are lower. Do not invest in any mutual fund based solely on returns. Always consult a financial advisor before investing.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.