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SIP Return: 11 lakhs of 3 lakhs in 5 years, know everything before doing SIP

How to Start SIP: With the boom in the stock market, the returns of mutual funds are also getting better. After the lockdown, there has been a strong boom in equity funds, which has made the experts positive about investing in mutual funds once again. The safest and better way to invest in mutual funds is Systematic Investment Plan ie SIP. Instead of depositing your money one time in SIP, you can deposit it on fixed installment basis in every month. This is a great feature for small retail investors. Because in this, the amount of SIP can be increased by assessing your investment from time to time. In the SIP, the possibility of high returns in the long term is also high. There are many such SIP schemes in the market in which investors can start investing in 100 to 500 rupees as well.

How has it been for 5 years?

There are many such mutual fund schemes in the market, in which in the last 5 years, 15 to 25 per cent has been given annually.

PGIM India Midcap Opportunity Fund

5 Year Return: 25%
5000 Monthly SIP Value in 5 Years: Rs 11 Lakh
(Total investment: 3 lakh rupees)
Minimum SIP: 1000 rupees
Assets: 713 crores (January 31, 2021)
Expense Ratio: 0.64% (January 31, 2021)

Kotak Smallcap Fund

5-Year Return: 23%
5000 Monthly SIP Value in 5 Years: Rs. 10.54 Lakh
(Total investment: 3 lakh rupees)
Minimum SIP: 1000 rupees
Assets: 2539 crores (January 31, 2021)
Expense Ratio: 0.60% (January 31, 2021)

Mirae Assets Emerging Bluechip

5-Year Return: 23%
5000 Monthly SIP Value in 5 Years: Rs. 10.47 Lakh
(Total investment: 3 lakh rupees)
Minimum SIP: 1000 rupees
Assets: 14146 crores (January 31, 2021)
Expense Ratio: 0.75% (January 31, 2021)

SBI Smallcap Fund

5-Year Return: 23%
5000 Monthly SIP Value in 5 Years: Rs. 10.47 Lakh
(Total investment: 3 lakh rupees)
Minimum SIP: Rs 500
Assets: 6594 crores (January 31, 2021)
Expense Ratio: 0.90% (January 31, 2021)

Axis Midcap Fund

5-Year Return: 23%
5000 Monthly SIP Value in 5 Years: Rs. 10.44 Lakh
(Total investment: 3 lakh rupees)
Minimum SIP: Rs 500
Assets: 8608 crores (January 31, 2021)
Expense ratio: 0.52% (January 31, 2021)

(source: value research)

SBI Retirement Benefit Fund: Insurance up to 50 lakh on SIP, along with many more benefits

Advantages of SIP

  • SIP is a better option for those investors who want to reduce their market risk if they start investing in equity or debt funds.
  • Through this, you can invest in the capital market with small amount and also in easy installments.
  • Investors get the benefit of compounding in SIP. There is a possibility of higher returns in the long term.
  • The advantage of depositing an installment every month is that when the returns are increasing in the market, the top up can increase the installment through SIP.
  • There is also a facility to pause SIP when the market falls and fear increases, then you can continue it when the market is right.
  • Under this, you can also avail auto debit facility from the bank account by giving a standing instruction to the fund house, which will automatically deduct the installment amount from your bank account every month.

Documents required for SIP

KYC process is necessary to initiate SIP. For this, you should have PANCORD, ADDRESS PROOF, PASSPORT SIZED PHOTOGRAPH and CHECKBOOK. For debit of SIP payment, you will also have to give the bank account details. For online transaction, you have to create a user name and password. To start an online SIP, you can go to the website of a fund house and choose SPI.

(Note: We have given the information of the fund here on the basis of their performance. The market has its own risks, so consult the advisor at your level before investing.)

Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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