SIP Investment: The earlier you start investing the more beneficial. However, this isn’t an actual standard. There’s an investment delay, but If the strategy is successful, then money can still be earned.
SIPs are a good choice for people who are older than 30 years in age. There is no need to make a huge investment. You just need to save 100 per day.
Commit 3000 Rs monthly in mutual funds that are equity and keep it for 30 years.
This way your retirement planning can be taken care of. After 30 years, you will have the sum of Rs 4.17 crore.
That’s nothing. There will be such a massive return that only 3.58 crore will be earned.
Long term strategy works
If you are looking to earn money, then a long-term strategy is best. Eliminate the expenses that are necessary from your earnings, and then save just Rs 100 per day.
This savings should be invested each month. A systematic investment plan will provide the best direction for your investment and will ensure that the returns are expected to continue increasing.
Equity mutual fund is a good option
Equity mutual funds are an option that is recommended by financial advisors, if are looking for a huge fund, equity mutual funds are an excellent choice.
If a person invests his first amount of 3000 Rs at 30 and continues to invest over the next 30 years, then a large fund will be established.
It is advantageous to invest in a Systematic Investment Plan (SIP) of equity mutual funds.
There is a big benefit of compounding
The benefits of compounding. If you believe the recommendation of your advisor, you are required to make a commitment to mutual funds for the duration of 30 years.
If you can earn an estimated yield of 15%, then the way to becoming a millionaire is effortless. The main benefit is the potential for compounding.
That means you’ll reap the benefits of compounding interest and 15% over 30 years. However, what’s more crucial is the most precise formula that will increase the value of SIP.
This formula is a part of Step Up SIP. All you need to do is keep an increase of 10% each year.
10% step-up will create a corpus of Rs 4.50 crore
A 10% increase will result in an income of Rs 4.50 crore. You’re thirty years old. You have saved Rs 100 every day and invested it in SIP.
The long term plan is aimed at 30 years. Maintain a 10% step-up each year. If you started with Rs 3000 you’ll need the ability to raise that amount by 300 the following year.
In 30 years, you will be able to retire with a total amount of Rs 4,506,66,809. Based on the SIP calculator your investment over 30 years would be 59,21,785.
However, the return on investment will be 3 crore. That’s the most lucrative return you can get from SIP. This way by using the most precise formula to step up, you’ll have a large amount of four crores and 50 lakhs.
Which SIP is Best For 3 Years?
SIPs offer an efficient way of building wealth through regular savings. They ensure that your long-term investing goals can be realized successfully.
SIPs also enable you to generate higher returns by investing small amounts at regular intervals – thanks to the principle of compound interest!
1. Parag Parikh Flexi Cap Fund Direct-Growth
Parag Parikh Flexi Cap Fund Direct-Growth has become one of the go-to schemes in its category for long-term returns that exceed benchmark returns and surpass those achieved by similar funds in this space.
These outstanding performances have earned Parag Parikh Flexi Cap Fund Direct-Growth an A rating from Morningstar, placing it as one of their highest-rated schemes overall.
Raunak Onkar and Rajeev Thakkar, the fund managers, have done an outstanding job of using the flexibility offered by flexi-cap funds to generate consistent returns while also producing above-average alpha when markets decline.
Over the last year, this fund has experienced strong gains due to its investments in ITC, Bajaj Holding & Investment, and ICICI Bank stocks.
Additionally, Axis Bank, Multi Commodity Exchange, Zydus Lifesciences, and Power Grid Corporation feature as exposures. Offshore holdings account for 15% of assets; however, due to SEBI’s ban on investing overseas, this amount has decreased drastically.
The expense ratio of this fund is lower than average among its peers, which is an encouraging sign. This indicates that more of the returns generated by this fund remain in investors’ pockets.
2. Birla Sun Life Prudence Fund
If you’re searching for an efficient SIP to invest in over three years, this unit-linked insurance plan (ULIP) may be your ideal solution. Offering both market-linked returns and life insurance protection, its premium charges and payouts are tax-free under Section 80C/10(10D).
As it follows a value investing approach, it seeks stocks trading at lower-than-expected levels in line with their goal of consistent long-term capital appreciation.
Recently, this fund underwent several changes, such as its name being altered. However, this doesn’t indicate any shift in investment objectives – rather it means they have broadened out from investing predominantly in large-cap stocks to include mid and small-cap stocks as part of their investment universe.
Mahesh Shah is a B Com graduate with over 27 years of fund management experience. At ABSLMF he oversees equity investments of schemes worth over Rs 2 lakh crore with his team of 22 analysts and fund managers under him.
Mahesh specializes in overseeing growth-oriented funds as well as income-generating ones; prior to joining ABSLMF in 2009 he worked in areas like liquidity management and treasury finance.
3. HDFC Prudence Fund
HDFC Prudence Fund is one of the oldest and top-performing balanced or hybrid funds in India, managed by experienced fund managers Prashant Jain and Rakesh Vyas.
This fund offers both growth and dividend options, while direct plan investors may save on portfolio management charges. Both online and offline options are available through this scheme.
HDFC Prudence has delivered impressive returns over long-term periods but underperformed its benchmark over short-term markets. Furthermore, it carries a higher risk than most of its peers and investors should have at least a five-year investment horizon.
This fund maintains a large-cap exposure of roughly 50%-60% in its portfolio, while small and mid-cap exposure makes up roughly 15%. Furthermore, a reasonable allocation to debt instruments such as Government securities, money market instruments, securitised debt instruments corporate debentures bonds preference shares Government bonds etc makes this fund suitable for those looking for low risk and moderate return potential investments with over two decades of track record outperforming its benchmark in most years.
4. Axis Long-Term Equity Fund
Axis Long-Term Equity Fund is an ideal option for investors with long-term investment horizons who seek to both reduce taxes and build wealth. As an ELSS, this fund offers both SIP and lump sum options; with the latter providing opportunities for rupee cost averaging and compounding.
It has consistently been one of the top performers in its category in terms of annual returns, though investors should keep in mind that it entails high levels of risk due to investing in equity-related securities.
The fund boasts an outstanding track record since inception and has consistently outshone both benchmark and peer performance over most periods since inception. Furthermore, it offers an attractive dividend yield.
Jignesh Gopani has been overseeing Axis AMC’s fund since 2011. The B.Com in MMS and B.Com degrees in his resume He has held positions with Emkay Shares & Stock Brokers Limited, Voyager India Capital Pvt Ltd, and Net Worth Stock Broking Limited before becoming a member of Axis AMC at 36. His extensive experience makes him a vital asset.
5. Birla Sun Life Tax Saver Fund
If you’re making a lump sum investment soon, ELSS funds could help.
They offer tax savings of up to Rs 1.5 lakh under Section 80C of the Income Tax Act while investing predominantly in equity securities with the lowest lock-in period (3 years) when compared with similar tax-saving options like the Public Provident Fund and National Savings Certificate.
For optimal decision-making, it is best to select an ELSS fund that best matches your investment objectives and risk tolerance, and has an outstanding track record – you can check its Sharpe ratio and Standard Deviation to assess this.
The Sharpe ratio gauges the risk-adjusted return The lower the number is higher, the better it will perform. Standard Deviation shows how volatile its returns are.
You can compare this fund’s performance against its peers by looking at their returns generated – just click the “Compare” button in the table for this purpose; this will show a list of similar funds.