Power of SIP: With monthly SIP of Rs 2000, you got Rs 1 crore to Rs 4 crore, 5 schemes gave highest returns in 25 years

Mutual Fund SIP :You must have often heard that the biggest advantage of investing in SIP is compounding. Compounding in mutual funds is a facility in which you get interest on the interest earned and your wealth keeps increasing in the long term. SIP is a special facility of investment in mutual fund schemes, in which small amounts can be invested on a monthly basis. There is no need to deposit a large amount at once. Talking about small amounts, many mutual fund schemes provide SIP facility with Rs 100 to Rs 500.

SIP Return: SIP of Rs 2500 became Rs 7 crore, 21% annualized return since launch

If you want to see the power of compounding on investing through SIP in the long term, then you can look at the return chart of some 20 to 25 year old mutual fund schemes. Here we have selected 5 such schemes which are 25 years or more old, which have given the highest SIP returns in 25 years. The 5 funds we have given information about have given annualized returns of up to 23.25 percent. At the same time, investors became crorepatis with a monthly SIP of just Rs 2000. Whereas their total investment was only Rs 7 lakh.

1. Nippon India Growth Fund

If we look at the SIP chart of the last 25 years in Nippon India Growth Fund, this scheme has given 23.25 percent annualized return. By doing SIP of Rs 2000 in this fund for 25 consecutive years, the total value of investment has become more than Rs 4 crore.

Monthly SIP: Rs 2000
Annualized Return: 23.25%
Upfront investment: Rs 1 lakh
Total investment in 25 years: Rs 7 lakh
Value of SIP in 25 years: Rs 4,00,25,861 (around Rs 4 crore)

Amrit Vrishti: SBI’s new FD scheme, ‘Amrit Vrishti’ is giving up to 7.75% interest, offer for only a few months

2. Franklin India Prima Fund

If we look at the SIP chart of Franklin India Prima Fund for the last 25 years, this scheme has given 21.79 percent annualized return. By doing SIP of Rs 2000 in this fund for 25 consecutive years, the total value of investment has become more than Rs 3 crore.

Monthly SIP: Rs 2000
Annualized Return: 21.79%
Upfront investment: Rs 1 lakh
Total investment in 25 years: Rs 7 lakh
Value of SIP in 25 years: Rs 3,06,46,980 (around Rs 3 crore)

3. HDFC Flexi Cap Fund

If we look at the SIP chart of HDFC Flexi Cap Fund for the last 25 years, this scheme has given 20.86 percent annualized return. By doing SIP of Rs 2000 in this fund for 25 consecutive years, the total value of investment has become more than Rs 2.50 crore.

Monthly SIP: Rs 2000
Annualized Return: 20.86%
Upfront investment: Rs 1 lakh
Total investment in 25 years: Rs 7 lakh
Value of SIP in 25 years: Rs 2,58,31,462 (about Rs 2.58 crore)

Up to 7.75% return on savings account, customers of these banks including SBI, HDFC Bank, ICICI Bank will have to do this work

4. Tata Midcap Growth Fund

If we look at the SIP chart of Tata Midcap Growth Fund for the last 25 years, this scheme has given an annualized return of 20.18 percent. By doing SIP of Rs 2000 in this fund for 25 consecutive years, the total value of investment has become more than Rs 2.25 crore.

Monthly SIP: Rs 2000
Annualized Return: 20.18%
Upfront investment: Rs 1 lakh
Total investment in 25 years: Rs 7 lakh
Value of SIP in 25 years: Rs 2,27,83,182 (about Rs 2.28 crore)

Investment: Monthly income will be 20 thousand to 60 thousand, 3 risk free investments for regular income

5. DSP Flexi Cap Fund

If we look at the SIP chart of DSP Flexi Cap Fund for the last 25 years, this scheme has given 18.51 percent annualized return. By doing SIP of Rs 2000 in this fund for 25 consecutive years, the total value of investment has become more than Rs 1.50 crore.

Monthly SIP: Rs 2000
Annualized Return: 18.51%
Upfront investment: Rs 1 lakh
Total investment in 25 years: Rs 7 lakh
Value of SIP in 25 years: Rs 1,67,57,460 (around Rs 1.70 crore)

(source funds performance: value research)