There are many such mutual fund schemes in the market, which have made investors rich through long-term SIP. Compared to small savings, they have got many times higher returns.
SIP vs RD Return: Smallcap funds invest the money of investors in the shares of smallcap companies. Investing in these is definitely somewhat risky as compared to largecap or multicap, but investing in them through SIP not only covers the risk, but also gives strong returns in the long term. There are many smallcap mutual funds in the market that have made investors rich in the long run. They have got double or triple returns as compared to small savings schemes. Here, we have listed some smallcap funds where SIPs have given investors up to 2.5 times higher returns than Recurring Deposits (RD) after 10 years. At the same time, the risk in these funds is also average or less than average. Both are options for promoting long-term investments.
Check RD Calculation
Post Office Recurring Deposit (RD) is currently earning 5.8 per cent interest on quarterly compounding basis. It is more as compared to RD of SBI or other banks. Here the interest received on RD by common investors, not senior citizens, has been considered as the basis.
Investment per month: Rs 5000
Interest: 5.8%
Duration: 10 years
Value at maturity: 813232
Check Here Funds With Best SIP Returns
SBI Small Cap Fund
10 Year SIP Return: 22% CAGR
Value of Rs 5000 Monthly SIP in 10 years: Rs 19.12 lakh
Value of lump sum investment of Rs 1 lakh: Rs 8.85 lakh
Minimum SIP investment: Rs 500
Minimum lump sum investment: Rs 5000
Total Assets: 11,831 crore (May 31, 2022)
Expense Ratio: 1.74% (May 31, 2022)
Risk: Below average
Nippon India Small Cap Fund
10 Year SIP Return: 21.76% CAGR
Value of Rs 5000 Monthly SIP in 10 years: Rs 19 lakh
Value of lump sum investment of Rs 1 lakh: Rs 8.29 lakh
Minimum SIP investment: Rs 1000
Minimum lump sum investment: Rs 5000
Total Assets: 18,675 crore (May 31, 2022)
Expense Ratio: 1.82% (May 31, 2022)
Risk: Average
Kotak Small Cap Fund
10 Year SIP Return: 19% CAGR
Value of Rs 5000 Monthly SIP in 10 years: Rs 16.5 lakh
Value of lump sum investment of Rs 1 lakh: Rs 6 lakh
Minimum SIP investment: Rs 1000
Minimum lump sum investment: Rs 5000
Total Assets: 7192 Crore (May 31, 2022)
Expense Ratio: 1.95% (May 31, 2022)
Risk: Below average
DSP Small Cap Fund
10 Year SIP Return: 18.6% CAGR
Value of Rs 5000 Monthly SIP in 10 years: Rs 16 lakh
Value of lump sum investment of Rs 1 lakh: Rs 6.52 lakh
Minimum SIP investment: Rs 500
Minimum lump sum investment: Rs 500
Total Assets: 8323 crore (May 31, 2022)
Expense Ratio: 1.88% (May 31, 2022)
Risk: Average
ICICI Prudential Smallcap Fund
10 Year SIP Return: 15.70% CAGR
Value of Rs 5000 Monthly SIP in 10 years: Rs 13.6 lakh
Value of lump sum investment of Rs 1 lakh: Rs 4.5 lakh
Minimum SIP investment: Rs 100
Minimum lump sum investment: Rs 5000
Total Assets: 3611 Crore (May 31, 2022)
Expense Ratio: 2.13% (May 31, 2022)
Risk: Average
(source: value research)
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