10,000 Monthly SIP Plans

SIPs work on simple and basic principles that allow investors to create wealth:

• Invest as early as possible in a SIP so that the investor does not face any financial crunch whilst investing.

• Invest as long as possible, say 15 years or 20 years, for exponential returns.

• Various types of SIP plans offer varied wealth returns.

What Happens If You Invest 10000 A Month for 20 Years?

From conservative to aggressive, there are various SIP investment plans in the market that offer varied returns as the involvement of risk from one plan to another. Let us consider investing Rs. 10,000 for a period of 20 years in different SIP types and look at the wealth returns at the end.

The invested amount in a SIP can grow exponentially depending upon the fund type selected. The financial stability of the investor plays a major role when choosing a SIP plan.

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Which SIP Is Best for 10000 Per Month Investment?

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

1. ICICI Prudential Technology Direct Plan Growth

   It is a sectoral equity fund that invests largely in the equity of tech or IT companies. ICICI Prudential Technology Direct Plan Growth fund’s 3-year annualized returns turn out to be 32.89%, whereas 5-year returns are 28.15% currently. The AUM as of 23rd May 2022 is Rs. 8,742.31 crores.

2. HDFC Short Term Debt Fund Direct Plan Growth

   HDFC Short Term Debt Fund Direct Plan Growth is a short duration debt fund with 7.4% 3-year returns and 7.3% 5-year returns currently. There is no exit load on the fund, but the returns are taxable as per the income if funds are sold before 3 years of purchase. 

3. Canara Robeco Equity Hybrid Fund Direct Growth

   An aggressive hybrid fund, Canara Robeco Equity Hybrid Fund Direct Growth is a high-risk taking fund. The 3-year annualized return of this fund is 14.1%, and the 5-year return comes out to be 12.4%. If withdrawn before 1 year of SIP purchase, returns are taxed at 15%.

4. BOI AXA Tax Advantage Direct Growth

   It comes with a 3-year lock-in period during which the money cannot be withdrawn. The 3-year annualized returns of BOI AXA Tax Advantage Direct Growth plan is 21.7%, whereas the 5-year return turns out to be 16.1% currently. Returns of Rs. 1,00,000 and above in a year are taxed at 10%.

To get a better idea of SIP plans, it is suggested to study the best SIP plans in the market before investing.

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Why Invest in Systematic Investment Plans?

One of the smartest ways of investment these days, SIPs have grown exceptionally in the financial market, offering great returns. It can be considered best for investors who are willing to outgrow their wealth in the long term. Here are some reasons why SIP should be considered for your next investment option:

• Returns are higher compared to many investment options

• It offers rupee cost averaging, wherein an investor can buy limited shares when the market is high and a higher number when the market is low.

• SIPs are considered affordable and easy on the pocket investment options

• It helps in the diversification of the portfolio

Summing Up!

An investor has a plethora of investment options to put 10000 monthly in a SIP plan and earn great returns over a long-term period. It is extremely important to study the market carefully before making any kind of investment and make a choice as per their own financial status. SIP calculator online tool can be used to analyse the SIP returns.