Building wealth through mutual fund SIPs does not always require a large monthly investment. Investors can begin with a small amount and continue investing regularly over the long term. For example, if a cup of tea costs ₹10, saving ₹10 a day could amount to around ₹300 a month.
Some mutual funds allow investors to start SIPs with as little as ₹100 per month. Regular investments over an extended period can help investors participate in the growth potential of equity markets.
The information provided for this article highlights five equity mutual fund SIPs that have generated long-term returns ranging from 19.8% to 24.6%. However, details for only three of those funds are specified below.
Quant ELSS Tax Saver
The Quant ELSS Tax Saver allows investors to start an SIP with a minimum investment of ₹500.
Its current Net Asset Value (NAV) is ₹117.89. According to the information provided, the fund has delivered a 19.8% return over the past 10 years through SIP investments.
Union Small Cap Fund
For investors considering the Union Small Cap Fund, the minimum SIP investment mentioned is ₹1,000.
The fund’s current NAV is ₹66.09. Over a 10-year SIP period, it has generated a return of 20%, according to the figures provided.
Invesco India Mid Cap
The Invesco India Mid Cap fund offers a relatively low entry point for SIP investors, with a minimum investment of ₹100.
Its current NAV stands at ₹232.6. The fund has delivered a 20.2% return over the last 10 years for SIP investors, based on the information provided.
Small SIPs Can Be Started for the Long Term
SIPs allow investors to invest a fixed amount at regular intervals instead of putting a large sum into the market at once. The minimum investment amount varies from one mutual fund to another, making it possible for investors to choose an option according to their investment capacity.
However, mutual fund returns are market-linked and can change over time. Past performance should not be treated as a guarantee of future returns. Investors should consider their financial goals, risk tolerance and investment horizon before selecting a mutual fund.
Disclaimer
This article is meant for general informational purposes only and does not constitute investment or financial advice. Mutual fund investments are subject to market risks, and past returns do not guarantee future performance. Investors should carefully review the scheme details and consult a qualified financial professional before making any investment decision.