Investing in mutual funds through SIP (Systematic Investment Plan) is a prudent way to accumulate wealth over the long term. Here are five combinations of mutual funds that you can consider for a ₹5,000 SIP each month, along with an estimated calculation for 30 years:
Combination 1: Balanced Approach
- ₹1,000: Mirae Asset Large Cap Fund
- ₹1,000: Axis Bluechip Fund
- ₹1,000: SBI Bluechip Fund
- ₹1,000: ICICI Prudential Bluechip Fund
- ₹1,000: Mirae Asset Emerging Bluechip Fund
Calculation:
Assuming an average annual return of 12% (which is a reasonable long-term expectation for equity investments in India):
- Monthly SIP: ₹5,000
- Annual Return: 12%
- Investment Period: 30 years
Using a compound interest calculator, the estimated corpus after 30 years would be approximately ₹2.45 crore.
Combination 2: Index Funds & Large Cap
- ₹2,000: HDFC Index Fund – Sensex Plan
- ₹1,000: Mirae Asset Large Cap Fund
- ₹1,000: Axis Bluechip Fund
- ₹1,000: ICICI Prudential Bluechip Fund
Calculation:
- Monthly SIP: ₹5,000
- Annual Return: 12%
- Investment Period: 30 years
Estimated corpus after 30 years: Around ₹2.3 crore.
Combination 3: Diversified Equity
- ₹1,000: Mirae Asset Large Cap Fund
- ₹1,000: Axis Bluechip Fund
- ₹1,000: Kotak Standard Multicap Fund
- ₹1,000: HDFC Mid-Cap Opportunities Fund
- ₹1,000: SBI Small Cap Fund
Calculation:
- Monthly SIP: ₹5,000
- Annual Return: 12%
- Investment Period: 30 years
Estimated corpus after 30 years: Approximately ₹2.5 crore.
Combination 4: Tax Saving (ELSS) & Large Cap
- ₹2,000: Axis Long Term Equity Fund (ELSS)
- ₹1,000: Mirae Asset Large Cap Fund
- ₹1,000: SBI Bluechip Fund
- ₹1,000: ICICI Prudential Bluechip Fund
Calculation:
- Monthly SIP: ₹5,000
- Annual Return: 12%
- Investment Period: 30 years
Estimated corpus after 30 years: Around ₹2.35 crore.
Combination 5: Aggressive Growth
- ₹1,500: Mirae Asset Large Cap Fund
- ₹1,000: HDFC Mid-Cap Opportunities Fund
- ₹1,000: Axis Small Cap Fund
- ₹1,000: Kotak Emerging Equity Scheme
- ₹500: SBI Magnum Multicap Fund
Calculation:
- Monthly SIP: ₹5,000
- Annual Return: 12%
- Investment Period: 30 years
Estimated corpus after 30 years: Approximately ₹2.6 crore.
These calculations are based on the assumption of a 12% annual return, which is a historical average for equity investments in India over the long term. Actual returns may vary, and it’s important to review your investments periodically and adjust as needed based on market conditions and your financial goals.