SIP for 20 years – What will happen if I invest Rs 1000 in SIP for 20 years? The best thing about mutual funds is that you can predict its returns. Remember mutual fund investment is subject to market risks, hence most of the investors invest in mutual funds through SIP.
SIP because despite being market linked, it has less risk and in many ways its returns are strong. Through SIP, you can start investing with just Rs 500 monthly. Apart from this, things like top-up facility, stopping SIP midway, redeeming whenever you want make SIP easy to invest.
Typical 12% returns on mutual fund SIP
Experts typically peg the annual returns from mutual fund SIPs at 12 per cent, although many good quality funds offer returns much higher than this, and some even lower. If the investment period is for a long time (at least 5 years) then SIP gives very good returns.
SIP for 20 years
SIP is not just an investment but is the best tool for wealth creation, the longer the investment continues, the bigger the wealth creation will be with the help of compounding, here we will know how much return we will get if we invest Rs 1000 in SIP for 20 years.
If you get 10% return annually?
If you get a normal 10% annual return, then a SIP of Rs 1,000 will create a total wealth of Rs 7,65,697 in the next 20 years, here your total investment will be Rs 2,40,000, on which interest of Rs 5,25,697 will be generated.
SIP for 20 years
If you get 12% returns annually?
If an average return of 12 percent is obtained, then Rs 2 lakh 40 thousand will be deposited through SIP of Rs 1,000 per month, on which interest of Rs 7,59,148 will be received, in this way the total maturity amount will become Rs 9,99,148.
What if you get an annual return of 15%?
If the annual return is 15%, then a total of Rs 2 lakh 40 thousand will be deposited in 20 years through SIP of Rs 1,000, on which interest of Rs 12,75,955 will be earned, thus the total maturity amount will be Rs 15,15,055.
But get 18 percent return annually?
If a monthly SIP of Rs 1,000 gives 18 percent annual return, then the total investment will be Rs 2,40,000 and the return on it will be Rs 21,03,487 and the total maturity return will be Rs 23,43,487.
If you get 20 percent returns annually?
If you get 20 percent annual return from SIP of Rs 1,000 for 20 years, the total maturity amount will be Rs 31,61,479.
Mutual funds with returns in 20 years
mutual fund 20 year return
ICICI Prudential Technology Fund 19.22%
HDFC Flexi Cap Fund 18.53%
Sundaram Mid Cap Fund – Regular Plan 21.21%
Nippon India Growth Fund 20.85%
Franklin India Flexi Cap Fund 18.10%
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