Hello Mate! Are you considering building your further wealth? Just believe in us and spend your two minutes reading this article.
Whether a beginner or expert, you will agree with us that Mutual Fund SIPs are the best when it comes to low-risk investment choices. Welcome 2023 as a wealth builder for your future self. Mutual funds give you the privilege to target a particular sector in the share market or to place your complete funds on a diversified range. Given the inflation rate and the compounding interest benefit of mutual funds, investing via the SIP method is the best way to secure your financial future. As a long-term investment plan, it’s the most efficient way to increase the decreasing value of your savings. Even if you are a little aggressive investor who plans to earn lakhs in just the next 5 years.
Building Your Wealth Through Mutual Fund SIP Method
If you want to earn lakhs, let’s say ₹50 Lakh, that too in 5 years, then you will not only just need to evaluate your goal but also the plan implementation. So, not just only the target amount but you should need to find out how much money you will have to invest, how much risk you can bear, how much persistence you have, and the need to live without all the money you are going to invest in SIP form for next 5 years.
‘Now for the individual with a moderately-aggressive risk profile who plans to accumulate ₹50 Lakhs in the next 5 years, it is suggested to invest in categories such as Flexi cap funds or Multicap funds which invest in a diversified mix of stocks across any market segment and sectors. For example, if an individual plans to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus,” mentioned livemint.
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“So, mutual fund schemes such as HDFC Flexi cap Fund and Nippon India Multicap Fund have given a stellar return of 19.40% and 15.90% respectively in the current year as compared to their category average of 2.59% and 5.91% respectively in the same period. These two funds have been consistent performers over the years because of their diversified asset allocation and investment strategies that have helped them to be resilient to market downturns,” further explained.