Best SIP Plans – Invest 666 Rs Daily and Earn 5.5 Crore Rupees After 20 Years

Best SIP Plans

Investing in mutual funds through Systematic Investment Plans (SIPs) is a powerful strategy for wealth creation over the long term. This essay explores how a disciplined investment of ₹666.6 daily (₹20,000 monthly) with an annual step-up of 10% and an expected annual return rate of 15% can grow to approximately ₹5.5 crore over 20 years. We will also highlight five mutual funds that are well-suited for this investment strategy.

Best SIP Plans – Investment Details

Before delving into the mutual funds, let’s break down the investment details:

• Daily Investment: ₹666.6
• Monthly Investment: ₹20,000
• Annual Step-Up: 10%
• Expected Return Rate (Annual): 15%
• Time Period: 20 years

Investment and Returns Breakdown

• Total Invested Amount: ₹1,37,46,000
• Estimated Returns: ₹4,19,26,624
• Total Value: ₹5,56,72,624

The disciplined approach of Best SIP Plans, combined with the power of compounding, makes it possible to achieve significant financial goals.

Also Read…. Best SIP Plans : Invest Rs 4000, You Can Earn 1 Crore – Comprehensive Guide

Best SIP Plans for Long-Term Wealth Creation

These are the 5 Best SIP Plans :

1. Quant Small Cap Fund

Overview: The Quant Small Cap Fund focuses on small-cap stocks, which have high growth potential. It is known for aggressive growth and can offer substantial returns over the long term.

• Fund Objective: To generate capital appreciation by investing in a diversified portfolio of small-cap stocks.
• Risk Level: High
• Investment Horizon: Long-term (5+ years)

2. Nippon India Small Cap Fund

Overview: This fund aims to provide long-term capital growth by predominantly investing in equity and equity-related instruments of small-cap companies.

• Fund Objective: To seek long-term capital appreciation by investing in small-cap stocks.
• Risk Level: High
• Investment Horizon: Long-term (5+ years)

3. HSBC Small Cap Fund

Overview: The HSBC Small Cap Fund is designed to identify and invest in small-cap companies with the potential for significant growth and profitability.

• Fund Objective: To achieve long-term capital appreciation by primarily investing in small-cap stocks.
• Risk Level: High
• Investment Horizon: Long-term (5+ years)

4. SBI Small Cap Fund

Overview: SBI Small Cap Fund is one of the top-performing small-cap funds in India. It aims to provide investors with opportunities for long-term capital growth by investing in small-cap companies.

• Fund Objective: To provide investors with opportunities for long-term growth by investing predominantly in small-cap companies.
• Risk Level: High
• Investment Horizon: Long-term (5+ years)

5. HDFC Small Cap Fund Regular

Overview: HDFC Small Cap Fund focuses on small-cap stocks with high growth potential. It is managed by one of the most trusted names in the Indian mutual fund industry.

• Fund Objective: To generate long-term capital appreciation by investing predominantly in small-cap companies.
• Risk Level: High
• Investment Horizon: Long-term (5+ years)

The Power of Compounding

The key to achieving substantial returns lies in the power of compounding. By investing consistently and allowing your investments to grow over time, the returns generated in the early years start earning returns themselves, leading to exponential growth. Here’s how the investment grows with compounding:

Step-Up SIP

The concept of a step-up SIP involves increasing your investment amount periodically. In this case, an annual step-up of 10% means that you will increase your monthly investment by 10% every year. This helps in significantly boosting the corpus over the long term.

Expected Returns Calculation

Given the expected return rate of 15% per annum, the investment calculation involves using the future value of a series formula, considering the annual increment in investment. The significant returns are primarily driven by the compound interest effect, which is maximized over the 20-year period.

Projected Growth

Assuming the SIP investment continues with the specified parameters:

• Year 1 Monthly SIP: ₹20,000
• Year 2 Monthly SIP: ₹22,000
• Year 3 Monthly SIP: ₹24,200
• … (and so on, increasing by 10% annually)

By the end of 20 years, the power of compounding coupled with disciplined investments and annual increments will result in the significant corpus of approximately ₹5.5 crore.

Conclusion

Investing ₹666 daily through a systematic investment plan (SIP) can be a highly effective strategy for long-term wealth creation. With an annual step-up of 10% and an expected annual return rate of 15%, this disciplined approach can potentially grow your investment to ₹5.5 crore over 20 years. The recommended mutual funds, including Quant Small Cap Fund, Nippon India Small Cap Fund, HSBC Small Cap Fund, SBI Small Cap Fund, and HDFC Small Cap Fund Regular, are well-suited for investors looking to capitalize on the growth potential of small-cap stocks. By leveraging the power of compounding and staying committed to your investment plan, you can achieve significant financial goals and secure a prosperous future.

Disclaimer

The information provided in this essay is for educational and informational purposes only and should not be construed as financial or investment advice. The projections and figures mentioned, including the investment amounts, expected returns, and total value, are based on hypothetical scenarios and assumptions. Actual investment performance may vary due to market conditions and other factors.