• Source:JND

Mutual Fund SIP Calculation: India's investor base has been increasing year after year since the COVID period, as more unique investors are turning towards equities to start their investment journey.

According to the Securities and Exchange Board of India, till October last year, India had a total registered investor base of around 12.3 crore. The new investors are not only fueling the stock market sentiment, but they are also strengthening all available investment instruments by embracing investment habits as per their risk appetite and needs.

Many of them invest directly into equities, while some choose a systematic investment path into mutual funds. The investor base of exchange-traded funds (ETFs) is also growing at a decent pace.

Mutual Fund Can Be Best For Wealth Creation In Long-Run

Meanwhile, if you are an existing investor or a new one, looking to accumulate a corpus by investing a fixed amount for a decent period, then Mutual Funds can be a better option.

Also Read: Reliance Share Price Dips 5%; Here's Why RIL Shares Are Falling Today

Considering the historic return data of top equity mutual funds, it can be said that one can generate a good wealth by staying long in their investment journey, irrespective of changing the investment habit based on market fluctuations.

What is a Mutual Fund SIP

The mutual fund systematic investment plan allows investors to invest a certain amount every month that goes into equities, debt, or commodities, depending on the kind of mutual fund you have chosen. The fund is managed by Fund Managers.

Now, let's understand the calculation for a scenario where an investor is willing to do an SIP of Rs 10,000 for 10 years. The annualised compounded interest rate for this calculation is 12 per cent, which is considered the standard return rate for a long-standing investment.

Rs 10,000 SIP Calculation

A total investment for an investor doing a Rs 10,00 SIP every month for 10 years will be Rs 12,00,000. Considering the 12 per cent annualised return, he must be earning an estimated return of Rs 10,40,359. Meaning, with a SIP of Rs 10,000 per month for a period of 10 years, the investor can accumulate an estimated Rs 22,40,359.

  • Invested Amount Rs 12 Lakh
  • Estimated Compounded Returned Earned On Investment - Rs 10,40,359 lakh
  • Total Value - (Principal Money + Interest Earned) Rs 22,40,359
  • Tenure - 10 Years

Mutual Fund Industry's Total AUM

According to the Association of Mutual Funds in India (AMFI) data, Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry grew from Rs 12.95 trillion as on November 30, 2015, to Rs 80.80 trillion till the end of November 2025, surging more than 6-fold in 10 years.

Also Read: Adani Group News: Adani Enterprises' Rs 1,000 Crore Bond Issue Sold Out Within A Hour

Meanwhile, the MF Industry’s AUM surged over 3 fold from Rs 30.01 trillion as on November 30, 2020, to Rs 80.80 trillion as on November 30, 2025. 

(Disclaimer: This story is for informational purposes only. Please consult with an adviser for investment advice.) 

 


Also In News