Mutual Fund Calculator: How Much SIP Required To Create A Corpus of Rs 1 Cr In 10 Years?

The power of compounding, rupee cost averaging, flexible investment amounts starting at Rs 500 per month, and lower risks are all advantages of SIP in mutual funds, which serve as bread and butter for investors. Since mutual fund investments are best for long term here we have taken an example on how much SIP is required to create a corpus of Rs 1 Cr In 10 years. The responses here are of different industry experts and are not advised by us.

Shruti Jain, CSO, Arihant Capital Markets

For creating a corpus of ₹1 crore in 10 years through a Systematic Investment Plan (SIP) with an assumed interest rate of 8% per annum, you can use the following formula:

Calculate the monthly SIP amount: Monthly SIP Amount = Desired Corpus / ((1 + Monthly Rate of Return)^(Number of Months)) Monthly

SIP Amount = 1,00,00,000 / ((1 + (0.08/12))^(10*12))

Using the above formula, the approximate monthly SIP amount required to create a corpus of Rs. 1 crore in 10 years would be around ₹55,000.

Here are some mutual funds that you can consider for accumulating wealth:

ICICI Prudential Focused Bluechip Equity Fund

Aditya Birla Sun Life Small and Midcap Fund

Tata Equity PE Fund

L&T Tax Advantage Fund

SBI Nifty Index Fund

These mutual funds have generated decent returns for their unitholders. However, it is important to note that mutual fund selection should be based on your individual financial goals, risk tolerance, and investment horizon.

Satyen Kothari, the founder and CEO of Cube Wealth

The amount required for a Systematic Investment Plan (SIP) to create a corpus of Rs 1 crore in 10 years depends on various factors such as the expected rate of return and the frequency of investments. Assuming an average annual return of 12%, you would need to invest approximately Rs 41,500 per month through SIP to reach the target corpus of Rs 1 crore. However, it's important to note that market fluctuations and other variables can impact the actual returns. Additionally, it's advisable to consult with a financial advisor or use online calculators to get a more accurate estimation based on your specific investment goals and risk appetite.
There is probably no fund that won't go up and down in a 10 year span. So it is important to consult an advisor and check the funds from time to time.

However,currently these funds are good for long term wealth creation.

1. HDFC Top 100

2. Quant Active Fund

3. Icici Pru Large and Midcap

4. Kotak Emerging Equities

5. Canara Small Cap

Aashika Jain, Financial Expert and Editor, Forbes Advisor

Systematically investing money in the stock market is among the safest ways to invest with the added benefits of a fair degree of stability and possible tax rebates. To be able to build a corpus of INR 1 cr in 10 years, they need to simply start with a base investment of INR 32,000 per month. If we look at the average annual return of mutual funds and understand an average of 12% returns to be an achievable target year-on-year, a top-up annual increase of 10% per year is the ideal plan to achieve your target of INR 1 cr.

Some of the best-performing SIP mutual fund across categories to be considered include:

- Quant Tax Plan - Direct Plan

- Canara Robeco BlueChip Equity Fund - Direct Plan

- Quant Large and Mid Cap Fund - Direct

- PGIM India Midcap Opportunities Fund - Direct Plan

- Quant Small Cap Fund - Direct Plan

Amar Ranu, Sr. VP & Head - Investment products and Insights, Anand Rathi Shares and Stock Brokers

The SIP amount depends upon the expected rate of return from the market. For the given 12% and 15% growth rate, one needs to have a monthly SIP amount of INR 43,100 and INR 36,000 respectively for 10 years to reach a corpus of INR 1 cr.

Pankaj Mathpal, Certified Financial Planner

Assuming a CAGR of 12%, investors should invest around Rs. 45,000 per month through SIP to accumulate Rs. 1 crore in 10 years. Alternatively investors can start an SIP of Rs. 30,000 initially and Step up the SIP amount by 10% every year to accumulate the same amount in 10 years.

Recommended schemes : Aditya Birla Sun Life Flexi Cap Fund, Motilal Oswal Large & Midcap Fund, Aditya Birla Sun Life Balanced Advantage Fund, ICICI Prudential Multicap Fund.

Suman Bannerjee, CIO, Hedonova, a US based Hedge Fund

To accumulate Rs 1 crore in 10 years, a person would need to invest approximately Rs 48,000 per month, assuming a 10% rate of interest. HDFC Index Sensex, Mirae Asset Large Cap, Parag Parikh Flexi Cap Fund are some of the suggested funds to start SIP.

Pamarty Venkataramana, an accomplished international corporate lawyer, columnist & advisor to income tax officials

To calculate the Systematic Investment Plan (SIP) required to create a corpus of Rs 1 crore in 10 years, you need to consider the following factors:

Expected rate of return: The rate of return varies for different mutual funds and is subject to market fluctuations. As an estimate, you can assume an average annual return of around 10-12%. However, please note that historical returns are not indicative of future performance.

Investment frequency: SIP allows you to invest at regular intervals, such as monthly, quarterly, or annually. For the purpose of this calculation, we will assume a monthly investment.

Using these assumptions, you can calculate the SIP amount required using the following formula:

SIP Amount = Future Value / ((1 + Expected Return)^(n) - 1) * (1 + Expected Return)

Where:

Future Value is the desired corpus (Rs 1 crore)

Expected Return is the annual rate of return (10-12% or the expected range)

n is the number of investment periods (10 years * 12 months = 120 months)

Using this formula, you can calculate the SIP amount required to achieve the desired corpus of Rs 1 crore in 10 years.

As for specific mutual fund suggestions, it is important to note that providing personalized financial advice or specific fund recommendations is beyond the scope of this AI model. However, you can consider the following points while selecting mutual funds:
Diversification: Invest in a diversified portfolio of mutual funds to spread the risk across different asset classes and sectors.
Risk profile: Assess your risk tolerance and choose funds that align with your risk appetite. Mutual funds range from conservative to aggressive, depending on their investment objectives.

Fund performance: Review the historical performance of mutual funds over different time periods, considering factors such as returns, consistency, and volatility. However, past performance should not be the sole criteria for decision-making.

Fund manager expertise: Evaluate the track record and experience of the fund manager managing the mutual fund you are considering.

To make an informed decision about mutual funds, it's advisable to consult with a financial advisor or conduct thorough research on various mutual fund options, considering your financial goals, risk tolerance, and investment horizon.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.