Examples of 5000 SIP for 10 Years
These examples illustrate how SIPs can help individuals achieve diverse financial objectives, whether it's funding higher education, planning for a dream vacation, or building an emergency fund. By tailoring investments to their risk appetite and time horizon, individuals like Rohan, Neha, and Vikram can turn their financial aspirations into reality.
Example 1: Large-Cap Fund
Rohan, a 28-year-old software engineer, aims to build a corpus for his daughter's higher education. He chooses a large-cap fund, known for stability and consistent returns, with an expected 10% annual return.
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Monthly SIP Amount: ₹5,000
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Investment Period: 10 years
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Fund Type: Large Cap
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Annualised Returns: 10% CAGR
Scenario:
By using an SIP calculator, we will get:
By the time his daughter reaches college age (38), his investment grows to approximately ₹9.28 lakhs. This corpus can significantly contribute to her higher education expenses.
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Investment: ₹6L
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Returns: ₹4.07L
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Total Corpus: ₹10.1L
Example 2: Mid-Cap Fund
Neha, a 35-year-old entrepreneur, is looking to expand her business. She invests in a mid-cap fund, balancing growth potential with moderate risk, with an expected 12% annual return.
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Monthly SIP Amount: ₹5,000
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Investment Period: 10 years
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Fund Type: Mid Cap
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Annualised Returns: 12% CAGR
Scenario:
By using an SIP calculator, we will get:
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Investment: ₹6L
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Returns: ₹5.28L
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Total Corpus: ₹11.2L
Example 3: Small-Cap Fund
Vikram, a 25-year-old aspiring investor, is willing to take on higher risks for potentially greater rewards. He invests in a small-cap fund, aiming for long-term capital appreciation with an expected annual return of 15%.
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Monthly SIP Amount: ₹5,000
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Investment Period: 10 years
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Fund Type: Small Cap
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Annualised Returns: 15% CAGR
Scenario:
By using an SIP calculator, we will get:
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Investment: ₹6L
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Returns: ₹7.15L
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Total Corpus: ₹13.2L
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
17.93%
High Growth Fund
17.6%
Top 200 Fund
13.73%
Accelerator Mid-Cap Fund II
14.37%
Opportunities Fund
9.16%
Equity II Fund
12.73%
Accelerator Fund
14.17%
Growth Opportunities Plus Fund
15.04%
Multiplier
11.46%
Equity Top 250 Fund
12.64%
Future Apex Fund
11.9%
Opportunities Fund
14.02%
Frontline Equity Fund
15.2%
Virtue II
10.41%
Pension Dynamic Equity Fund
11.83%
Top 300 Fund
9.96%
Blue-Chip Equity Fund
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Max Life |
27.23% |
19.83% |
|
| Tata AIA |
31.77% |
20.57% |
|
| Bajaj Allianz |
25.23% |
11.96% |
|
| HDFC Standard |
26.46% |
13.5% |
|
| Canara HSBC Oriental Bank |
21.15% |
10.32% |
|
| Bharti AXA |
24.02% |
14.49% |
|
| Birla Sun Life |
27.77% |
12.67% |
|
| ICICI Prudential |
24.03% |
13.02% |
|
| LIC |
- |
- |
|
| PNB Metlife |
23.2% |
17.21% |
|
Fund rating powered by
Last updated: Mar 2025
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| QUANT |
23.92% |
31.48% |
|
| PARAG PARIKH |
20.69% |
26.41% |
|
| EDELWEISS |
22.34% |
24.29% |
|
| KOTAK |
24.64% |
25.01% |
|
| MIRAE ASSET |
19.74% |
24.32% |
|
| PGIM INDIA |
14.75% |
23.39% |
|
| DSP |
18.41% |
22.33% |
|
| CANARA ROBECO |
20.05% |
21.80% |
|
| SUNDARAM |
18.27% |
18.22% |
|
Why Should You Start Investing Today?
The power of compounding with SIPs lies in their simplicity, flexibility, and the potential to grow your wealth consistently over time. Starting today, even with a modest monthly amount like ₹5,000, can help you achieve your long-term financial aspirations. The earlier you begin, the more time your investments have to compound, maximizing returns and mitigating the impact of market fluctuations.
FAQs
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What are some popular investment options in India?
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ULIP plans
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Mutual Funds (Equity, Debt, Hybrid)
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Public Provident Fund (PPF)
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National Pension System (NPS)
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Fixed Deposits (FDs)
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Equity Shares
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Real Estate
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Gold
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Who should consider investing in large-cap funds?
Investors seeking stability and consistent returns with lower risk tolerance, like Rohan in our example.
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Are mid-cap funds riskier than large-cap funds?
Yes,
mid-cap funds generally carry higher risk than large-cap funds due to their higher exposure to smaller companies. However, they also have the potential for higher returns, as demonstrated in Neha's case.
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What is the right age to start an SIP?
There is no single "right" age. Starting early, like Vikram, allows for significant benefits from compounding over a longer period. However, it's never too late to begin investing.
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Can SIPs guarantee returns?
No, SIPs do not guarantee any specific returns. Investment returns are subject to market fluctuations and depend on various factors, including market performance and the chosen investment options.
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How do I decide the right investment option for me?
The
best investment option depends on your individual circumstances, including:
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Financial Goals: What are you saving for (retirement, education, a down payment, etc.)?
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Risk Tolerance: How comfortable are you with the potential for market fluctuations and the possibility of losing money?
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Investment Horizon: How long do you plan to invest your money?
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Liquidity Needs: How easily do you need to access your funds?
Consulting with a qualified financial advisor can help you assess your individual needs and make informed investment decisions.
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Are there any tax-saving investment options available in India?
Yes, several investment options qualify for tax benefits under
Section 80C of the Income Tax Act, including:
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Public Provident Fund (PPF)
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Equity Linked Savings Schemes (ELSS)
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Tax-saving Fixed Deposits (FDs)
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Life Insurance
