Mutual funds: How a Rs 10,000 monthly SIP grows to Rs 11.37 lakh in 7 years

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Mutual Fund Investment

New Delhi: SIP or systematic investment plan has multiple benefits like long-term gains, flexibility to withdraw or increase/decrease the investment amount, regular saving, and the facility to make minimum investments. The SIP mode is a suitable investment option for those who don’t have a lump sum amount for investment but they want to see their investments turn into a whopping corpus in the long-term from small monthly contributions.

SIP is one of the most suitable equity investment tools that help an investor beat inflation growth in the long term. Mutual fund SIPs are very popular due to the flexibility it offers to investors on multiple fronts. The power of mutual fund SIP can be assessed from the return Invesco India Dynamic Equity Fund – Direct Plan – Growth has given. The fund has delivered staggering return to its investors. This mutual fund plan has turned Rs 10,000 monthly SIP into Rs 11.37 lakh in last 7 years.

Invesco India Dynamic Equity Fund – Direct Plan – Growth was launched in January 2013, the fund has delivered near 12 percent annualised return and near 191 percent absolute return. This plan has delivered alpha return to its investors as the category return since inception of this plan stands at 8.40 percent.

In the last one year, this MF plan has delivered 2.50 percent annualised and absolute return. In last 3 years, this plan has given 7.65 percent annual return and 24.80 per-cent absolute return. Similarly, in last five years, its annual return stood at 7.75 per-cent whereas absolute return in this period was 45.35 percent.

As per calculation, Rs 10,000 monthly SIP of this fund would have turned to Rs 4.09 lakh if SIP was started 3 years ago. Likewise, if an investor had invested Rs 10,000 monthly in this plan in SIP mode, then in last 5 years its Rs 10,000 monthly investment would have turned to Rs 7.26 lakh today. Similarly, if an investor had started Rs 10,000 monthly SIP in this mutual fund plan, it would have turned to Rs 11.37 lakh in the last 7 years.

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