Mutual fund SIPs do wonder to one’s long term wealth. Study of past performance (source mutual fund facts sheets of various fund houses for the month of Aug-2020) of large cap mutual fund schemes-regular plan-growth option launched more than 20 years back reveals that many schemes have delivered a CAGR return in the range of 15-18% (Past performance may or may not be repeated in future).
Mutual fund investments are subject to market risk, read all the scheme related documents carefully.
Based on the above study and taking 15% average CAGR return, we found that a disciplined investment of just Rs. 7,000/- a month through SIP route in such schemes could have created a wealth of about a Crore in 20 years’ time.
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