Best SIPs to Invest in for 10 Years
Below are the details of the best sip to invest for 10 years
How Does SIP for 10 Years Work?
Let's illustrate how SIP works with a simple example. Suppose you invest ₹10,000 monthly in a mutual fund for 10 years. Assume an average annual return of 12% (for illustrative purposes only - actual returns may vary).
We can use an SIP calculator to estimate the final amount. Here's a simplified way to understand the concept:
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Year 1: You invest ₹1,20,000 (₹10,000 x 12 months). At a 12% return, your investment grows to approximately ₹1,34,400.
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Year 2: You invest another ₹1,20,000, and your existing investment also grows. The combined amount now earns interest.
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This process continues for 10 years.
The power of compounding comes into play as your earnings from previous years also generate returns in subsequent years. Over 10 years, even with a consistent monthly investment, the final corpus can be significantly larger than the total amount invested due to compounding.
Important Note: This is a simplified illustration. Actual market returns can fluctuate, impacting the final amount. It's crucial to remember that mutual fund investments carry market risk.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
18.4%
High Growth Fund
17.46%
Top 200 Fund
14.57%
Accelerator Mid-Cap Fund II
14.81%
Opportunities Fund
10.58%
Growth Plus Fund
13.35%
Accelerator Fund
14.61%
Growth Opportunities Plus Fund
15.6%
Multiplier
11.48%
Equity Top 250 Fund
13.31%
Future Apex Fund
12.32%
Opportunities Fund
14.24%
Frontline Equity Fund
15.03%
Virtue II
10.88%
Pension Dynamic Equity Fund
11.8%
Equity Fund
10.32%
Blue-Chip Equity Fund
Factors to Consider When Choosing Best SIP to Invest for 10 Years
Below are the factors to consider when choosing the best SIP plan for 10 years
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Investment Goal: Define your financial goal for the 10-year period.
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Risk Tolerance: Assess your risk appetite. Higher risk tolerance may allow you to consider mid-cap or small-cap funds, which have higher growth potential but also higher volatility. Lower risk tolerance might be better suited for large-cap or balanced funds.
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Fund Manager's Track Record: Research the fund manager's experience and performance over time.
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Expense Ratio: Consider the expense ratio charged by the fund house, as it impacts your net returns.
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Fund Category: Choose the fund category (large-cap, mid-cap, small-cap, flexi-cap, etc.) that aligns with your risk tolerance and investment goals.
Conclusion
Investing in SIPs for 10 years can be a rewarding way to achieve your long-term financial aspirations. By choosing the right funds, staying disciplined with your investments, and understanding the power of compounding, you can potentially build a substantial corpus over time.
