For just Rs 150 a day, you can create Rs 10 lakh fund through SIP, here's how

Investing in Mutual Funds through SIP is the simplest and easiest way. You can easily create a fund of lakhs if you invest your small savings on a monthly basis. If you save Rs 150 daily and choose the option of investing in SIP every month, then you can easily build a corpus of Rs 10 lakh or more in 10 years. There are many such schemes of mutual funds, which have given annual returns of 12 to 15 per cent or more in 10 years.

Suppose, you save Rs 150 every day, then your savings become Rs 4,500 every month. If you do a SIP of Rs 4,500 every month and get an annual return of 12 per cent, you will create a corpus of more than Rs 10.45 lakh in 10 years. Similarly, if the annualized return is 15 per cent, then this fund will become more than Rs 12.54 lakh. If the annual return is 20 per cent, then you can become the owner of more than Rs 17.20 lakh in 10 years.

There are even schemes, whose returns have been more than 25 percent in the last 10 years. For example, the 10-year annualized return of Motilal Oswal NASDAQ 100 ETF Motilal Oswal NASDAQ 100 Exchange Traded Fund was more than 26 per cent. Similarly, Nippon India ETF Bank BeES has given returns of more than 16 per cent in 10 years. (The returns of these funds have been reported on the basis of NAV as on 2nd November 2021.)

AK Nigam, Director, BPN Fincap says that SIP is a systematic method of investment. In the last 10 years, there are many such funds, whose annual SIP returns have been more than 12 per cent. In this, the investor does not have to face the risk of the market directly. At the same time, the returns are also higher than the traditional product.

However, there is a risk in this too. An investor should therefore make an investment decision after looking at his income, target and risk profile. In this, the speciality of SIP is that you can start investing with just Rs 100 per month. Through this, you can easily know and understand the investment habit, risk and the assessment of the return on it.

Source : DNA India