SIP investing is becoming a popular choice today. Can a monthly SIP of just ₹2,000 create a corpus of ₹5 crore? Let's find out which fund achieved this feat...

SIP Investment: SIP investing is becoming a popular choice today. By investing small amounts under SIP, you can build a large corpus. Can a monthly SIP of just ₹2,000 create a corpus of ₹5 crore? This is possible with the help of long-term investing and compounding.

Nippon India's Growth Mid Cap Fund has delivered similar returns to investors. Nippon India's Mid Cap Fund has delivered a compound annual growth rate (CAGR) of 22 percent over the last 30 years, turning small monthly investments into a corpus of crores of rupees. This Nippon India fund was launched on October 8, 1995. Let's explore the complete calculations for building a corpus of ₹5 crore...

Monthly investment of ₹2,000 and a corpus of ₹5 crore

Nippon India Growth Mid Cap Fund has generated a return of approximately 22.44 percent over the past 30 years. This means that if a person had started a monthly SIP of ₹2,000 when this fund was launched, they would have a corpus of over ₹5 crore today.

SIP Calculation

If a person had started a monthly SIP of ₹2,000 for 30 years in this fund, their total investment would have been ₹720,000. At an annualized return of 22.44 percent, this small amount would have grown significantly over time. At the end of 30 years, this SIP would have created a corpus of approximately ₹5.17 crore. Compounding works wonders on long-term investments, providing investors with good returns.

Disclaimer: (The information provided here is for informational purposes only. It is important to note that investing in the market is subject to market risks. Always seek expert advice before investing. India Employment News never recommends investing here.)