Mutual Funds returns are subject to market conditions but a planned and systematic approach, would help a big return in the future. A Systematic Investment Plan (SIP) in mutual funds allows investors to contribute a fixed amount regularly, benefiting from compounding and rupee cost averaging. Assuming an annual return of Mutual Funds SIP returns @12%, the potential growth of your investment can be substantial over time. The youth generation prefers Mutual Funds than any other investments.
The problem is, no one wants to wait. Being patience during the fall of market is the best idea for a decent growth. For instance, investing ₹5,000 monthly for 20 years could grow to approximately ₹4.6 lakhs in total, with a maturity value of around ₹24 lakhs. This growth reflects the power of consistent investing and compounding returns, although actual performance depends on the specific mutual fund’s performance.
A good guidance can help the investor to a great extent to avoid risks in getting returns. SIPs provide a disciplined approach to wealth accumulation and are suitable for long-term financial goals.