New Delhi: Mutual fund investment has picked up in a tremendous manner, with inflows rising 17 per cent to Rs 40,608 crore in June 2024 from Rs 34,697 crore in May, according to AMFI data. Total assets under management have risen to RS 21,262 crore in June from Rs 20,904 crore a month ago.
SIP mutual funds have gained traction with 55,12,962 new SIPs opened in June. This indicates that MF investment has picked up among retail investors. Now, let us understand how monthly SIPs can yield returns capable of making you a crorepati.
Invest Rs 2,500 in MFs to become a crorepati
According to this calculation, let us assume the rate of interest is 14 per cent per annum.
Let us assume you start investing at the age of 21.
Invest Rs 2,500 per month in mutual fund SIPs.
At the stated rate of interest, your money will grow to Rs 32,90,866. This includes the principal of Rs 6 lakh and interest of Rs 26,90,866.
Let us assume that you will continue to invest until the age of 50.
Your investment of Rs 2,500 per month will turn into a crore from the year in which you turn 49.
To be precise, at the age of 49, or the 28th year of your investment, you will earn Rs 1.04 crore which includes a principal of RS 8,40,000 and an interest of Rs 96.24 lakh.
Rs 5,000 crore MF investment returns in 29 years
If you double your monthly investment to Rs 5,000 starting at the age of 21, at a 14 per cent interest rate, this amount will turn into Rs 1 crore in 23 years.
To be precise, you will have accumulated a corpus of Rs 1.02 crore, including interest of Rs 88.37 lakh and principal of Rs 13.80 lakh.
By the time you are 50 years old, this invesmtemt will have grown to RS 2.41 crore, inclouding an interest of Rs 2.23 crore and a principal of Rs 17,40,000.
As a best practice, it is useful to bump up investments every year by 5-10 per cent to account for inflation, since Rs 1 crore today may not be enough in 29 years.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Mutual Fund calculator: By assuming stable returns over a longer time frame, your Rs 2,500 per month investment can make you a crorepati. Here’s how. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
