MF calculator: These three equity mutual funds turn SIP of Rs 10,000 to Rs 12 lakhs in 5 years

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Mutual Funds

Systematic investment plans or SIPs more often than not protect investors‘ money from many harms, including in times of extreme market volatility as lump sum amount is not parked as investment. SIP plans are one of the safest and most convenient ways to invest in the equity markets of India through mutual funds. On top of everything, the power of compounding grows wealth and makes an investor rich.

MF experts usually recommend patience to investors when it comes to equity mutual funds as the power of compounding helps only when a person remains invested for a longer period of time. As compared to hybrid and debt funds, equity mutual funds have a better potential to generate huge wealth, although being more volatile in the near term. Here are examples of three equity funds that have turned a monthly SIP of Rs 10,000 to over Rs 12 lakhs in five years.

Quant Active Fund Direct-Growth

Since its inception, Quant Active Fund Direct-Growth has given average annual returns of 21.08 percent, with a one-year return of 14.10 percent. If someone had begun a monthly SIP of Rs 10,000 in the fund five years ago, it would now have made a corpus of Rs 12.72 lakh as the fund has given an annualized SIP return of 30.62 percent over a five-year period.

Quant Mid Cap Fund Direct-Growth

Since its start, Quant Mid Cap Fund Direct-Growth has logged an average return of 17.46 percent each year, including 23.56 percent over the past year. A monthly SIP of Rs 10,000 that was begun five years ago would now have turned into Rs 12.83 lakh as the fund has given investors annualized SIP return of 30.97 percent over the previous five years.

PGIM India Midcap Opportunities Fund Direct-Growth

PGIM India Midcap Opportunities Fund Direct-Growth’s return stood at 20.54 percent on average annually, with one-year return of 12.05 percent. The fund has logged an annualized SIP return of 31.40 percent over the past five years. A monthly SIP of Rs 10,000 that was started at the time would now be worth Rs 12.96 lakh.

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