Mutual Fund SIP Big Returns:If you want to accumulate a large corpus by investing small amounts, then investing in mutual funds through Systematic Investment Plan (SIP) can be a better way to do this. Regular investment, especially in equity funds, can pave the way for wealth creation over the long term. In that too, mid cap funds are known for high returns. However, the risk remains somewhat higher in these. Here we are going to talk about one such scheme, which has created a treasure of Rs 5 crore with a monthly SIP of just Rs 1100. The name of this scheme which gives such amazing returns over a long period of 29 years is Nippon India Growth Fund.
This is how a treasure of Rs 5 crore was created from SIP of Rs 1100
Nippon India Growth Fund is a mid cap equity fund, which mainly invests in mid cap stocks. You can see here the calculation of how an initial investment of Rs 50 thousand in this scheme and then a monthly SIP of Rs 1100 has created a corpus of more than Rs 5 crore in 29 years.
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Calculation of investment and returns
Scheme: Nippon India Growth Fund (Regular Plan)
- Lump sum investment: Rs 50,000
- Monthly SIP: Rs 1100
- Investment period: 29 years
- Total investment in 29 years (lump sum + SIP): Rs 4,32,800
- Total fund value after 29 years: Rs 5,05,27,991 (Rs 5.05 crore)
- Annualized return on lump sum + SIP investment over 29 years: 23.42%
- Annualized return on SIP only since the inception of the scheme: 23.75%
These figures show how a small SIP can give you big profits in the long run. However, it should always be kept in mind that the past performance of a mutual fund does not guarantee similar returns in the future.
Also read: SBI MF’s highest SIP return scheme, created a fund of Rs 1.26 crore with a monthly contribution of Rs 2000.
More information about Nippon India Growth Fund
– Start of Fund: 8 October 1995
– Fund Categories:mid cap equity fund
– Benchmark: NIFTY Midcap 150 Total Return Index
– Minimum Investment:100 rupees
– Minimum SIP Investment: 100 rupees
– Expense Ratio: 1.57% (Regular Plan), 0.77% (Direct Plan)
– Risk Level: Very High Risk
– Exit Load: 1% if sold or switched within 1 month of allotment, nothing thereafter.
-Fund Manager:Rupesh Patel (January 2023 to Present), 25+ years of experience
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Fund’s portfolio and asset allocation
– Equity: 96.55%
– Date: 0.02%
– Cash and cash equivalents: 3.43%
market cap weighting
– Large Cap: 18%
– Mid Cap: 69%
– Small Cap: 13%
Fund’s investment strategy
Nippon India Growth Fund aims to achieve capital growth in the long term. This fund mainly invests in mid-cap companies, which are considered to have good growth potential. The investment philosophy of this fund is ‘Growth at Reasonable Price’ (GARP), which means investing in companies that have good growth prospects and are available at reasonable prices. This fund specifically invests in those mid-cap companies which have the potential to become market leaders. It focuses more on these four key sectors: consumer discretionary, healthcare, finance and outsourcing to global corporations. Under the bottom up stock selection strategy, companies are selected on the basis of data and fundamentals.
Also read: Big Returns on SIP: This large cap scheme created a fund of Rs 1 crore with SIP of just Rs 3200, what is the investment strategy
For whom is this fund suitable?
This fund is a better option for those investors who can invest for at least 7 years or more. Investing in mid cap funds is more risky in the short term, but this risk is expected to reduce in the long term. Besides, the chances of getting high returns in the long term are also high. If you want to invest for the long term and have the ability to tolerate market fluctuations and the risk associated with investing in mid-caps, then this fund can be a good option for you. Investing in equity funds through SIP is the best way because in this you also get the benefit of rupee cost averaging.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking advice from.)
