Examples of 5000 SIP for 5 Years
These examples illustrate how SIP plans can cater to various financial goals, whether it's saving for a down payment on a home, funding higher education, or building a safety net. By tailoring investments to their goals and risk tolerance, individuals can pave the way to financial success.
Example 1: Large-Cap Fund
Scenario: A 35-year-old teacher, wants to save for a down payment on a home. They choose a large-cap fund for stability, offering an estimated 10% annual return.
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Monthly SIP Amount: ₹5,000
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Investment Period: 5 years
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Fund Type: Large Cap
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Annualised Returns: 10% CAGR
Outcome: In 5 years, the investment could grow to approximately ₹3.6 lakhs and can be calculated using SIP calculator. This amount can be used as a down payment for a home loan, bringing them closer to their dream of homeownership.
Example 2: Mid-Cap Fund
Scenario: A 28-year-old IT professional aims to save for their child's higher education. They invest in a mid-cap fund with an estimated 12% annual return, seeking a balance between growth and risk.
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Monthly SIP Amount: ₹5,000
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Investment Period: 5 years
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Fund Type: Mid Cap
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Annualised Returns: 12% CAGR
Outcome: In 5 years, the investment could grow to approximately ₹3.9 lakhs. This corpus can contribute significantly to their child's education expenses, ensuring they have the resources to pursue their dreams.
Example 3: Small-Cap Fund
Scenario: A 25-year-old entrepreneur is willing to take risks for higher potential rewards. They invest in a small-cap fund, which offers an estimated 15% annual return.
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Monthly SIP Amount: ₹5,000
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Investment Period: 5 years
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Fund Type: Small Cap
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Annualised Returns: 15% CAGR
Outcome: In 5 years, the investment could grow to approximately ₹4.4 lakhs. This amount can be used to expand their business, invest in other opportunities, or create a financial safety net.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
18.11%
High Growth Fund
17.8%
Top 200 Fund
13.97%
Accelerator Mid-Cap Fund II
14.53%
Opportunities Fund
9.16%
Equity II Fund
12.86%
Accelerator Fund
14.32%
Growth Opportunities Plus Fund
15.24%
Multiplier
11.57%
Equity Top 250 Fund
12.76%
Future Apex Fund
12.02%
Opportunities Fund
14.09%
Frontline Equity Fund
15.2%
Virtue II
10.49%
Pension Dynamic Equity Fund
12.03%
Equity Optimiser Pension
10.05%
Blue-Chip Equity Fund
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Max Life |
27.23% |
19.77% |
|
| Tata AIA |
32.06% |
20.5% |
|
| Bajaj Allianz |
25.49% |
11.86% |
|
| HDFC Standard |
26.82% |
13.48% |
|
| Canara HSBC Oriental Bank |
21.15% |
10.32% |
|
| Bharti AXA |
24.25% |
14.42% |
|
| Birla Sun Life |
28.17% |
12.64% |
|
| ICICI Prudential |
24.39% |
12.96% |
|
| 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 SIPs lies in their simplicity, flexibility, and potential to grow your wealth over time. Starting today, even with a modest monthly amount like ₹5,000 can create a substantial corpus for your future goals. The earlier you begin, the more time your investments have to compound with best sip plans, maximizing returns and reducing the impact of market fluctuations. Whether you prioritize stability with large-cap funds, balance with mid-caps, or growth with small-caps, starting now ensures you’re one step closer to financial freedom.
FAQs
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What is a Systematic Investment Plan (SIP)?
An SIP is a disciplined investment approach where a fixed amount of money is invested in a mutual fund at regular intervals, typically monthly. This helps in rupee cost averaging, which means you buy more units when the market is down and fewer units when the market is high.
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What are the benefits of investing in an SIP for 5 years?
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Power of Compounding: Over 5 years, your investments have ample time to grow through the power of compounding.
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Rupee Cost Averaging: Helps reduce the impact of market volatility.
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Discipline: Encourages regular saving and investing habits.
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Flexibility: You can choose from various fund categories like large-cap, mid-cap, small-cap, etc., based on your risk tolerance and financial goals.
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How much can I expect to earn with a ₹10,000 monthly SIP for 5 years?
The returns can vary significantly depending on the chosen fund, market conditions, and the investment tenure. The examples provided illustrate potential outcomes based on historical average returns.
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What are the risks involved in investing in mutual funds through SIPs?
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Market Risk: The value of your investments can fluctuate due to market volatility.
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Fund Manager Risk: The performance of the fund depends on the fund manager's investment decisions.
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Liquidity Risk: In some cases, it may be difficult to redeem your investments quickly.
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How do I choose the right mutual fund for my SIP?
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Define Your Goals: Determine your investment objectives (e.g., retirement, child's education, home purchase).
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Assess Your Risk Tolerance: Understand your ability to withstand market fluctuations.
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Research and Compare: Research different mutual fund options and compare their performance, expense ratios, and fund manager track records.
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Consult a Financial Advisor: Seek professional advice from a qualified financial advisor who can help you make informed investment decisions.
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Can I withdraw money from my SIP before the 5-year period?
Yes, you can usually withdraw money from your SIP at any time. However, early withdrawals may attract exit loads or penalties, depending on the fund's rules.
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How can I start investing in an SIP?
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Open a Demat and Trading Account: You can open these accounts online or through a brokerage firm.
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Choose a Mutual Fund: Select a mutual fund based on your investment goals and risk profile.
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Start Your SIP: Initiate your SIP through your online account or by submitting a physical form.
