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News Topical, Digital Desk : Mutual fund returns depend on the stock market. Therefore, people used to avoid investing in them. However, given the attractive returns they offer, everyone is now eager to invest in them.
Today we will understand with the help of SIP calculation that if someone wants to create a fund of Rs 1 crore from an SIP of Rs 5000, then how much time will it take?
Calculation
- Investment amount- Rs 5000 per month
- Investment return – 12%
If someone wants to build a corpus of ₹1 crore through a monthly SIP of ₹5,000, they would need to invest for 26 years at a 12% return. Over these 26 years, you would receive ₹10,800,000. Your principal would be ₹15,60,000.
Accordingly, your return over these 26 years could be ₹9,240,000. This return could be higher or lower.
What is Small Cap Fund?
Small-cap funds primarily invest in equities and related securities of small companies or small-cap companies. Small-cap companies are those ranked 251st or lower. These companies can have a market capitalization of less than ₹5,000 crore.
Who gave the highest returns in 5 years?
| Name | AUM | Expense Ratio | CAGR 5Y |
| Quant Small Cap Fund | 30169.7063 | 0.77 | 30.14082084 |
| Nippon India Small Cap Fund | 68571.851 | 0.63 | 27.65221078 |
| Bandhan Small Cap Fund | 18173.8513 | 0.42 | 27.32862991 |
| Invesco India Smallcap Fund | 8999.3331 | 0.4 | 26.9973826 |
| Edelweiss Small Cap Fund | 5330.1713 | 0.43 | 25.6057984 |
| HDFC Small Cap Fund | 38020.3127 | 0.67 | 25.35470112 |
| HSBC Small Cap Fund | 16202.8301 | 0.64 | 25.1562594 |
| Tata Small Cap Fund | 11409.73688 | 0.34 | 24.83695578 |
| Canara Rob Small Cap Fund | 13060.3702 | 0.46 | 24.63660162 |
| Bank of India Small Cap Fund | 1981.5898 | 0.53 | 24.39765879 |
Keep in mind that funds that have delivered good returns in the past may not necessarily deliver good returns in the future. Choose your funds wisely.
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