What is the average rate of return on SIP?

What is the average rate of return on SIP?

SIP returns for various mutual funds may vary. On an average, for large cap equities, a return of 12-18% can be expected whereas from mid-cap equities, a return of 14-17% is expected. However, in case of a long-term debt-based mutual fund, one can expect a return of 6 – 9 % p.a.

What is a good return on SIP?

Best SIP Plans for the Year 2022

Fund Name Monthly Investment 1 Year Returns
Franklin India Focused Equity Fund 5000 80.39%
HDFC Balance Advantage Fund 5000 55.65%
ICICI Prudential Bluechip Fund 5000 59.24%
Kotak Standard Multicap Fund 5000 48.94%

Is SIP investment profitable?

“There is no such thing as SIP giving good or bad returns. It is only about a fund underperforming or outperforming,” says Vidya Bala, Head of Mutual Fund Research, FundsIndia.com. “When you compare a fund, you compare it with its benchmark or peers.

What is average return in SIP for 15 years?

Over the 15 year period the compounded annual returns on your SIP investment in this fund would be 23%. In this article, we have seen how SIPs in large cap and diversified equity funds over the long term have created wealth for the investors.

Can I lose money in SIP?

SIPs have losses But as the market keeps falling and you continue to invest your average cost fall. You will be buying more units at a lesser cost. The primary advantage of SIP is to lower the average cost of buying mutual funds.

How can I make 10 lakhs in 5 years?

How to create Rs 10 lakh in five years?

  1. Reliance Tax Saver (ELSS) Fund: Rs 3,000 per month.
  2. HDFC Taxsaver Fund: Rs 3,000 per month.
  3. Franklin India Smaller Companies Fund- Regular (G): Rs 2,500 per month.
  4. HDFC Infrastructure Fund (G): Rs 2,500 per month.

Which is better SIP or PPF?

SIPs are prone to a higher level of risk as they are influenced by equity market performance. PPF offers guaranteed returns and is, therefore, a safer investment option. The rate of returns on PPF investments is predetermined and it may be changed by the government only. SIP does not have a lock-in period.

Can I stop SIP anytime?

You may cancel SIP even if you have invested through a mutual fund distributor. It helps if you inform your mutual fund agent who fills up the cancellation request for the SIP with the respective AMC.

How can I get 5 crores in 10 years?

One way to make disciplined investments in an Equity Mutual Fund over the long term is to start a Systematic Investment Plan (SIP). As you can see, for average annual returns of 10%, you will need a monthly Systematic Investment Plan of Rs. 2.42 lakh to save Rs. 5 crore in 10 years.

What are 4 types of mutual funds?

Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds. Each type has different features, risks, and rewards.

Which is better SIP or MF?

SIP can be considered as a better route to achieve the financial plan and investment goals. Mutual funds provide an investor with an option either to reinvest the earnings or returns. If instead of withdrawing an investor reinvests in the same plan he can enjoy the benefits of power of compounding.