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Home / Money / Personal Finance /  Mutual funds SIP calculator: How to accumulate 1 crore in 10 years?
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Mutual funds SIP calculator: Ravi Ujjwal is a 40 year old salaried professional and he is planning to invest for the higher studies of his 6 year old daughter. As per Ravi's assessment, he would need around 1 crore for the higher studies of his daughter and he want to meet this investment goal by starting an investment today. Ravi is not in mood to invest in direct stocks as he doesn't have much time to monitor his portfolio and fundamentals of the listed companies. And most importantly, he doesn't have a lump sum for investing as well.

Speaking on whether this investment goal is viable or not; SEBI registered tax and investment expert Jitendra Solanki said, "As the investor don't want to invest in direct stock market and his daughter is 6 year old already. He needs to accumulate 1 crore in 10 years as his daughter will become eligible for higher studies at around 16-18 years." 

Solanki said that equity mutual funds in monthly SIP mode is the most suitable investment option that the investor can look at as he lacks lump sum amount for one time investing.

Echoing with Jitendra Solanki's views; Kartik Jhaveri, Director — Wealth at Transcend Capital said, "Investing in mutual funds SIP for 10 year is expected to yield at least 12 per cent per annum. But, to achieve 1 crore target in 10 years, investors are advised to use annual step-up in one's monthly SIP. It helps an investor to start one's investment with lowest possible amount. Normally, annual step-up is advised around 10-15 per cent, but to achieve such an ambitious investment goal, I would advise an investor to maintain 20 per cent annual step-up in one's monthly SIP amount."

Mutual fund calculator

So, if Ravi or any other investor maintains 20 per cent annual step-up for its 10 year SIP, then assuming 12 per cent annual return, one will have to start monthly SIP with 21,000, suggests SIP calculator.

Photo: Courtesy Piggy SIP calculator
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Photo: Courtesy Piggy SIP calculator

On mutual fund SIP plans that can give 15 per cent return in 15 years; Vinit Khandare, CEO & Founder at MyFundBazaar India Private Limited listed out the following SIP plans:

Small-cap Fund: SBI Small Cap Fund - Regular Growth.

Mid-cap Fund: Aditya Birla Sun Life Mid Fund - Plan - Growth Regular Plan.

Large-cap Fund: HDFC Top 100 Fund - Regular Plan - Growth.

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