How Rs 5000 / Mo SIP Mutual Fund Make Investors Crorepati in Last 20 Years

By | March 26, 2017

Want to become a crorepati through investment? I am sure I am not the single person on the earth dreaming about the same. In fact every investor is expecting the same thing, which is higher return on short term. In this article, I will share some awesome mutual funds, which has provided some awesome return in last 20 years.

To understand the return, let me state very specific. If you would have started a SIP mutual fund in all these 5 funds that I am going to share, by investing Rs 5000 every month. Then the current value of your investment would be more than Rs 1 crore. This is not a magic, rather a simple investment which has been shared by Karvy Stock Broking agency.

Now if you do a simple calculation of how much you have invested in last 20 years, if the SIP value is monthly Rs 5000, then it will come as only Rs 12 lakh. But the return is simply outstanding which is more than 1 crore. Which means more than 8-9 times of your invested money.

Top 5 Funds Which Have Made Investors Crorepati in last 20 years, for an investment of Rs 5000 per month

Scheme NameNAVReturns (%)
3 Years5 YearsSince Inception
Birla SunLife Equity G604.2319.0122.7421.43
HDFC Equity Fund G52211.7216.1223.09
HDFC Top 200 Fund G387.3912.2215.2821.02
Reliance Growth Fund G927.5715.0218.6724.57
Reliance Vision Fund G479.8411.2115.9121

Well, the data for this article and the source is taken from karvy website. For latest NAV details, you can always look for the specific fund official website. This is just for an example purpose only. The funds mentioned here are some of the best mutual funds to invest for long term category.

Can I Start Investing in Them now to get similar return in next 20 years?

Like always, we all want to get the name to put our money. As this is just a case study which has the data of last 20 years of these top 5 funds. Now this is not guaranteed that these funds will also perform like in next 20 years. They may give even more return or may be lesser return. One should read and understand the fundamentals of the funds and why or how they can give maximum return.

In simple thumb rule, the possibility of maximum return from an pure equity fund is obvious, at the same time the risk in investment is also high. If you don’t want to take more risk, then your chance of getting higher return is also less. So, it’s very simple to understand, there is no such rocket science.

How to choose mutual funds to get higher return?

If you study these funds and how they have performed in last 20 years, where they have invested heavily and what are their top stocks which gave good return you will easily understand many things. But as a beginner, just make few things simple:

  • If your target is to create wealth for long term which is more than 10+ years of duration, you should put money in pure equity with maximum risk, considering your age also. E.g. there is no point to enter in equity mutual funds at the age of 60+ years. Rather, you should increase your debt part and concentrate more on monthly income option.
  • If you want to get highest return in short period of time, then also you have to choose the pure equity option only.
  • If you want to save income tax through mutual fund investments, then the best way start investing in Equity Linked Savings Scheme or ELSS mutual funds. E.g. Axis LT Equity Fund.
  • If you are looking for a better alternative of bank Fixed Deposit schemes, but a guaranteed return then you can go with the debt mutual funds. I will share a detailed article on debt mutual funds in coming days.
  • As a beginner, one can start SIP with a diversified large cap equity fund of any top company. Or simply look for top 5 equity diversified fund form large cap and choose any one to start your first mutual fund investment.

So, these are few ways you can start your journey of mutual funds. As a beginner you can always take help of any of the robo advisers in India for better understanding, how to buy mutual fund online, get regular suggestions etc. Consider success story or article like this as reference or knowledge purpose only. If you follow the same path blindly without understanding anything, the result may be different.

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