## Invest Rs 10000 per month SIP Mutual Funds

Do you wish to know where and how best to invest Rs 10000 per month?

Then you are at the right place.

Investing in mutual funds is one of the best ways to begin your wealth creation journey. And if you have already decided to invest 10000 per month in mutual fund SIP, then its all the more better.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because I can share a real life proof of how one person used SIP investing to create a portfolio of multiple crores.

SIP or Systematic Investment Plans are simple – invest a fixed sum in mutual funds at a regular frequency (generally monthly). Since most common investors are incapable of making big lump sum investments, SIP makes it easy for such people to make small regular investments every month using their monthly salaries without feeling burdened.

Once you have decided to invest a sum of Rs 10000 every month regularly, I am sure that you would be curious to know how much money you will have when you invest Rs 10000 a month in mutual funds for several years?

Right?

So let’s do some basic calculations:

## Value of Rs 10000 per month SIP

Historical SIP returns of good mutual funds have been between 12-18%. The actual returns might differ for different investors. But for this discussion, let’s be conservative and assume the average SIP returns in 10, 15 or 20 years to be 12% per annum.

Here is what a Rs 10000 per month SIP in mutual funds can do over the years:

• 5 year SIP of Rs 10000 monthly = Rs 8.5 lakh
• 10 year SIP of Rs 10000 monthly = Rs 23 lakh
• 15 year SIP of Rs 10000 monthly = Rs 50 lakh
• 20 year SIP of Rs 10000 monthly = Rs 96 lakh
• 25 year SIP of Rs 10000 monthly = Rs 1.79 crore
• 30 year SIP of Rs 10000 monthly = Rs 3.24 crore

Wow!

Those are some big numbers…atleast towards the end. And the picture becomes clearer when you compare these figures with the actual investments made:

• 5 year = Rs 10,000 x 12 x 5 = Rs 6 lakh
• 10 year = Rs 10,000 x 12 x 10 = Rs 12 lakh
• 15 year = Rs 10,000 x 12 x 15 = Rs 18 lakh
• 20 year = Rs 10,000 x 12 x 20 = Rs 24 lakh
• 25 year = Rs 10,000 x 12 x 25 = Rs 30 lakh
• 30 year = Rs 10,000 x 12 x 30 = Rs 36 lakh

The route of SIP investing can create a lot of wealth for you.

And just notice this – If you invest Rs. 10,000 per month via SIP for 10 years, you are actually just investing about Rs 12 lakh. But return you are getting is around Rs 23-24 lakh. It is double of what you originally invested over the 10-year period. And the longer you keep investing, the better the returns get!

So just imagine the kind of wealth you can create if you start investing early on in your career (let’s say at age 25-30) and continue till 60. Your monthly investments of Rs 10,000 in equity funds can grow into Rs 3.5 crore in 30 years! This is the magic of compounding at play.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds are great for real inflation-beating wealth creation.

And at the cost of sounding repetitive, I would say that starting early is unimaginably important. Here is something (very detailed) I wrote about the huge cost of delay in investing. It’s about two friends who start investing at different ages of 25 and 35. You will be shocked to see the difference in the final corpus they create. Do read it!

## Real Example – SIP of Rs 10,000 in Good Mutual Funds

The calculations shared above were done using simple SIP calculator (using fixed average returns of 12%). But in reality, the returns fluctuate and neither stock markets nor mutual fund NAVs move in straight lines.

So let’s use some real life SIP examples instead.

Let’s see what would have happened if you would have started investing Rs 10,000 every month via SIP in some good mutual funds years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting January 2000, if you had invested Rs 10000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 21.1 lac (up to July 2017).

And the value of your investments would be…

• Rs 1.74 crore in HDFC Top 200 Fund
• Rs 1.86 crore in HDFC Equity Fund
• Rs 1.63 crore in HDFC Prudence Fund

We often think it’s difficult to get rich. The above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income! No need for a rich father. 🙂

How to get Rs 1 crore in 20 years? The answer is to invest 10000 every month. How to get Rs 1 crore in 15 years? The answer is to invest Rs 20000 every month.

So now you have answers to your questions like how to become a crorepati by SIP. 🙂

But…

Don’t you feel something is odd in this discussion till now?

There is. And let me highlight it for you –

There is absolutely no need to keep investing just the originally decided amount of Rs 10000 per month for 20-30 years. Your income would increase every year. So your investments too should increase accordingly. Isn’t it?

A Rs 10000 per month investment for 17 years resulted in Rs 1.6-1.8 crore. Just imagine what would have happened if you had decided to go for a Step Up SIP? An SIP that increases every year in line with your income. So for example, it can be Rs 10000 in the first year, followed by 11,000 per month in next year, 12,000 per month in 3rd year and so on…. (i.e., increasing SIP by Rs 1000 every year).

If you want to start a SIP, always keep in mind that you can create ‘more’ wealth if you are able to increase the SIP every year.

Now ofcourse I have chosen funds that help me prove my point. And there have been several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns. But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do it via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by investing in a SIP of 10000 per month, it’s suggested not to have too many funds. Going for just 2-3 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 5000 each in two Large Cap funds
• Rs 5000 Large Cap fund + Rs 5000 Balanced fund
• Rs 7000 Large Cap fund + Rs 3000 Mid&Small Cap fund
• Rs 5000 in Large Cap Fund + Rs 5000 in Flexi/Multi Cap Fund
• Rs 5000 Large Cap fund + Rs 3000 Balanced fund + Rs 2000 Mid&Small Cap fund
• Rs 5000 Balanced fund + Rs 3000 Mid&Small Cap fund + Rs 2000 Large cap fund
• Rs 5000 Index Fund + Rs 5000 Balanced fund

There can be an infinite number of combinations. Suitability of SIP portfolio will differ from one investor to other. If you are not sure about where to invest or are looking for the best SIP for Rs 10000 per month, it’s better to take help of an investment advisor (you can contact me too).

Note – It’s assumed that if investing Rs 10000 in equity funds, you have already taken care of debt investments (via PF, PPF, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too.

I have already written at length as to how setting goals can help better manage investments.

It is always advisable to attach a goal to your investments. It helps keep you motivated and stick with the investment plan for long enough. And this is exactly how the remarkably powerful goal based financial planning works.

You can easily use SIPs to plan for all your goals (Download FREE Financial Goal Excel Worksheet here) and then invest regularly to achieve them. Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest financial goal of them all?

You can even do retirement planning or early retirement planning using mutual funds. In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact me directly using this form

As you must have realized, just knowing where to invest Rs 10000 every month is not enough. You need to know how much to invest in SIP to achieve your financial goals and then, invest in a more structured goal-based manner to live a financially fulfilling life that takes care of all your financial goals.

I will end this post now.

But before I do, let me tell you something important – SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But if you understand and believe in equity and the real power of compounding, I can assure you that taking the SIP route is your best bet to earn high returns offered by equity and that too in a limited monthly income that most people have. You have a real chance of getting very rich over time. And you don’t want to miss that. 🙂

Also please, don’t be under the impression that SIP is only for small investors. You can invest much more than just doing a SIP of 10000 per month.

You can go for (click links below for details):

Or if you want to know how much wealth you can create by investing lesser amounts, then use below links:

By investing regularly via SIP in best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So…

Are you still thinking whether or not to start a SIP in equity mutual funds?

I would suggest you stop thinking and start acting now.

You have all the answers now… and don’t need to wonder what would happen if I invest 10000 a month in mutual funds.

You know exactly how much wealth your small regular systematic investments can create. So start investing if you still haven’t; or increase your SIP investments if you are already investing Rs 10000 per month in mutual fund SIP. Over long-term, you will do incredibly well.

## Invest Rs 15000 per month SIP Mutual Funds

Do you wish to know where and how best to invest Rs 15000 per month?

Then you are at the right place.

Investing in mutual funds is one of the best ways to begin your wealth creation journey. And if you have already decided to invest 15000 per month in mutual fund SIP, then its all the more better.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because I can share a real life proof of how one person used SIP investing to create a portfolio of multiple crores.

SIP or Systematic Investment Plans are simple – invest a fixed sum in mutual funds at a regular frequency (generally monthly). Since most common investors are incapable of making big lump sum investments, SIP makes it easy for such people to make small regular investments every month using their monthly salaries without feeling burdened.

Once you have decided to invest a sum of Rs 15000 every month regularly, I am sure that you would be curious to know how much money you will have when you invest Rs 15000 a month in mutual funds for several years?

Right?

So let’s do some basic calculations:

## Value of Rs 15000 per month SIP

Historical SIP returns of good mutual funds have been between 12-18%. The actual returns might differ for different investors. But for this discussion, let’s be conservative and assume the average SIP returns in 10, 15 or 20 years to be 12% per annum.

Here is what a Rs 15000 per month SIP in mutual funds can do over the years:

• 5 year SIP of Rs 15000 monthly = Rs 12.8 lakh
• 10 year SIP of Rs 15000 monthly = Rs 35 lakh
• 15 year SIP of Rs 15000 monthly = Rs 75 lakh
• 20 year SIP of Rs 15000 monthly = Rs 1.4 crore
• 25 year SIP of Rs 15000 monthly = Rs 2.7 crore
• 30 year SIP of Rs 15000 monthly = Rs 4.8 crore

Wow!

Those are some big numbers…atleast towards the end. And the picture becomes clearer when you compare these figures with the actual investments made:

• 5 year = Rs 15,000 x 12 x 5 = Rs 9 lakh
• 10 year = Rs 15,000 x 12 x 10 = Rs 18 lakh
• 15 year = Rs 15,000 x 12 x 15 = Rs 27 lakh
• 20 year = Rs 15,000 x 12 x 20 = Rs 36 lakh
• 25 year = Rs 15,000 x 12 x 25 = Rs 45 lakh
• 30 year = Rs 15,000 x 12 x 30 = Rs 54 lakh

The route of SIP investing can create a lot of wealth for you.

And just notice this – If you invest Rs. 15,000 per month via SIP for 10 years, you are actually just investing about Rs 18 lakh. But return you are getting is around Rs 35-36 lakh. It is double of what you originally invested over the 10-year period. And the longer you keep investing, the better the returns get!

So just imagine the kind of wealth you can create if you start investing early on in your career (let’s say at age 25-30) and continue till 60. Your monthly investments of Rs 15,000 in equity funds can grow into Rs 4.8 crore in 30 years! This is the magic of compounding at play.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds are great for real inflation-beating wealth creation.

And at the cost of sounding repetitive, I would say that starting early is unimaginably important. Here is something (very detailed) I wrote about the huge cost of delay in investing. It’s about two friends who start investing at different ages of 25 and 35. You will be shocked to see the difference in the final corpus they create. Do read it!

## Real Example – SIP of Rs 15000 in Good Mutual Funds

The calculations shared above were done using simple SIP calculator (using fixed average returns of 12%). But in reality, the returns fluctuate and neither stock markets nor mutual fund NAVs move in straight lines.

So let’s use some real life SIP examples instead.

Let’s see what would have happened if you would have started investing Rs 15,000 every month via SIP in some good mutual funds years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting January 2000, if you had invested Rs 15,000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 31.6 lac (up to July 2017).

And the value of your investments would be…

• Rs 2.61 crore in HDFC Top 200 Fund
• Rs 2.79 crore in HDFC Equity Fund
• Rs 2.44 crore in HDFC Prudence Fund

We often think it’s difficult to get rich. The above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income! No need for a rich father. J How to get Rs 1 crore in 20 years? The answer is to invest 10000 every month. How to get Rs 1 crore in 15 years? The answer is to invest Rs 20000 every month.

So now you have answers to your questions like how to become a crorepati by SIP. 🙂

But…

Don’t you feel something is odd in this discussion till now?

There is. And let me highlight it for you –

There is absolutely no need to keep investing just the originally decided amount of Rs 15,000 per month for 20-30 years. Your income would increase every year. So your investments too should increase accordingly. Isn’t it?

A Rs 15000 per month investment for 17 years resulted in Rs 2.4-2.8 crore. Just imagine what would have happened if you had decided to go for a Step Up SIP? An SIP that increases every year in line with your income. So for example, it can be Rs 15,000 in the first year, followed by 17,000 per month in next year, 19,000 per month in 3rd year and so on…. (i.e., increasing SIP by Rs 2000 every year).

If you want to start a SIP, always keep in mind that you can create ‘more’ wealth if you are able to increase the SIP every year.

Now ofcourse I have chosen funds that help me prove my point. And there have been several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns. But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do it via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by investing in a SIP of 15000 per month, it’s suggested not to have too many funds. Going for just 2-3 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 7500 each in two Large Cap funds
• Rs 5000 Large Cap fund + Rs 10000 Balanced fund
• Rs 10000 Large Cap fund + Rs 5000 Mid&Small Cap fund
• Rs 7500 in Large Cap Fund + Rs 7500 in Flexi/Multi Cap Fund
• Rs 7000 Large Cap fund + Rs 5000 Balanced fund + Rs 3000 Mid&Small Cap fund
• Rs 5000 Balanced fund + Rs 5000 Mid&Small Cap fund + Rs 5000 Large cap fund
• Rs 10000 Index Fund + Rs 5000 Balanced fund

There can be an infinite number of combinations. Suitability of SIP portfolio will differ from one investor to other. If you are not sure about where to invest or are looking for the best SIP for Rs 15000 per month, it’s better to take help of an investment advisor (you can contact me too).

Note – It’s assumed that if investing Rs 15000 in equity funds, you have already taken care of debt investments (via PF, PPF, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too.

I have already written at length as to how setting goals can help better manage investments.

It is always advisable to attach a goal to your investments. It helps keep you motivated and stick with the investment plan for long enough. And this is exactly how the remarkably powerful goal based financial planning works.

You can easily use SIPs to plan for all your goals (Download FREE Financial Goal Excel Worksheet here) and then invest regularly to achieve them. Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest financial goal of them all?

You can even do retirement planning or early retirement planning using mutual funds. In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact me directly using this form

As you must have realized, just knowing where to invest Rs 15,000 every month is not enough. You need to know how much to invest in SIP to achieve your financial goals and then, invest in a more structured goal-based manner to live a financially fulfilling life that takes care of all your financial goals.

I will end this post now.

But before I do, let me tell you something important – SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But if you understand and believe in equity and the real power of compounding, I can assure you that taking the SIP route is your best bet to earn high returns offered by equity and that too in a limited monthly income that most people have. You have a real chance of getting very rich over time. And you don’t want to miss that. 🙂

Also please, don’t be under the impression that SIP is only for small investors. You can invest much more than just doing a SIP of 15,000 per month.

You can go for (click links below for details):

Or if you wish to invest a smaller amount, you can even check the below link:

By investing regularly via SIP in best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So…

Are you still thinking whether or not to start a SIP in equity mutual funds?

I would suggest you stop thinking and start acting now.

You have all the answers now… and don’t need to wonder what would happen if I invest 15000 a month in mutual funds.

You know exactly how much wealth your small regular systematic investments can create. So start investing if you still haven’t; or increase your SIP investments if you are already investing Rs 15000 per month in mutual fund SIP. Over long-term, you will do incredibly well.

## Invest Rs 20000 per month in SIP Mutual Fund

Are you planning to invest Rs 20000 per month? Or for that matter, you have already decided to invest 20000 per month in mutual fund SIP?

Investing Rs 20000 every month means different things to different people. For those with a salary of Rs 50,000, it means a lot (40% of salary). But for someone with Rs 3 lac monthly income, it’s next to nothing (~7% of income)!

In any case, investing in mutual fund SIP is a good decision and you will create a lot of wealth.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because there are several real life proofs for this (like this one where one person used SIP to create a portfolio of multiple crores).

SIP or Systematic Investment Plan is simple – Invest a fixed sum in mutual funds at a regular frequency (mostly monthly). Since most people are incapable of making big lump sum investments, SIP makes it easy for these people to make small and regular investments every month using their monthly salaries.

Now once you have decided to go ahead with your investment plan, my guess is that your main concern would be to know how much you will have if you invest Rs 20000 every month for several years?

Right?

So let’s do some basic calculations:

## Value of Rs 20000 per month Mutual Fund SIP

If you check the historical SIP returns of good mutual funds, you will find that returns have been in the range of 12 to 18%. But let’s be conservative and assume that the average SIP returns in 10, 15 or 20 years will be about 12% per annum.

So here is what a Rs 20000 monthly Systematic Investment Plan can do over the years:

• 5 year SIP of Rs 20000 monthly = Rs 17 lakh
• 10 year SIP of Rs 20000 monthly = Rs 47 lakh
• 15 year SIP of Rs 20000 monthly = Rs 1 crore
• 20 year SIP of Rs 20000 monthly = Rs 1.9 crore
• 25 year SIP of Rs 20000 monthly = Rs 3.5 crore
• 30 year SIP of Rs 20000 monthly = Rs 6.4 crore

Wow!

Those are some big numbers…at least towards the end.

And the picture becomes clearer when you compare these numbers with the actual investments made:

• 5 year = Rs 20,000 x 12 x 5 = Rs 12 lakh
• 10 year = Rs 20,000 x 12 x 10 = Rs 24 lakh
• 15 year = Rs 20,000 x 12 x 15 = Rs 36 lakh
• 20 year = Rs 20,000 x 12 x 20 = Rs 48 lakh
• 25 year = Rs 20,000 x 12 x 25 = Rs 60 lakh
• 30 year = Rs 20,000 x 12 x 30 = Rs 72 lakh

Stunning! Isn’t it?

The route of SIP investing can create a lot of wealth for you.

And just notice that if you invest Rs. 20,000 per month via SIP for 10 years, you are actually investing about Rs 24 lakh. But in return, you are getting around Rs 47-48 lakh. It is double of what you originally invested over the 10-year period.

So just imagine the kind of wealth you can create if you start investing early on in your career (let’s say at age 25-30) and continue till 60. Your monthly investments of Rs 20,000 in equity funds can grow into Rs 6.4 crore in 30 years! This is the magic of compounding at play.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds are great for real inflation-beating wealth creation.

And at the cost of sounding repetitive, I would say that starting early is unimaginably important. Here is a detailed post that I did to highlight the huge cost of delay in investing. It’s about two friends who start investing at different ages of 25 and 35. You will be shocked to see the difference in the final corpus they create. Do read it!

## Real Example – SIP of Rs 20000 in Good Mutual Funds

The calculations above were done using simple SIP calculator (assuming 12% average returns). But in reality, neither stock markets nor mutual fund NAVs move in straight lines. The returns fluctuate and don’t follow straight lines.

So here are some real life SIP examples to show how much you would have if you had started investing Rs 20,000 a month via SIP in good funds years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting from January 2000, if you had invested Rs 20,000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 42.2 lac (up to July 2017).

And the value of your investments would be…

• Rs 3.48 crore in HDFC Top 200 Fund
• Rs 3.72 crore in HDFC Equity Fund
• Rs 3.26 crore in HDFC Prudence Fund

These have been achieved in little over 17 years!

We often think it’s difficult to get rich. But the above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income. How to get Rs 1 crore in 15 years? The answer is to invest Rs 20000 every month. Can’t invest that much? No worries. If you invest Rs 10000 every month, you can still get to Rs 1 crore in 20 years. So if you were looking for an answer to how to become crorepati by SIP, I assume you have your answers now. 🙂

But…

Don’t you feel something is odd in this discussion till now?

There is. And let me highlight it for you –

There is absolutely no need to keep investing just the originally decided amount of Rs 20000 per month for 20-30 years. Your income would increase every year. So your investments should increase too. Isn’t it? Now a Rs 20000 per month investment for 17 years resulted in Rs 3.2-3.8 crore. Just imagine what would have happened if you had decided to go for a Step Up SIP? An SIP that increases every year in line with your income. So for example, it can be Rs 20000 in the first year, followed by SIP of 25,000 per month in next year, SIP of 30,000 per month in 3rd year and so on…. (i.e., increasing SIP by Rs 5000 every year).

I hope you get the picture. 🙂

If you are planning to start a SIP, just remember that you can create ‘more’ wealth if you are able to increase the SIP amount every year.

Now ofcourse I have chosen funds that help me prove my point. And there would be several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns.

But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by doing a SIP of 20000 per month, it’s suggested not to have too many funds. Going for just 2-4 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 10000 each in two Large Cap funds
• Rs 10000 Large Cap fund + Rs 10000 Balanced fund
• Rs 7500 each in two Large Cap funds + Rs 5000 Mid&Small Cap fund
• Rs 10000 in Large Cap Fund + Rs 10000 in Flexi/Multi Cap Fund
• Rs 10000 Large Cap fund + Rs 5000 Balanced fund + Rs 5000 Mid&Small Cap fund
• Rs 10000 Balanced fund + Rs 6000 Mid&Small Cap fund + Rs 4000 Large cap fund
• Rs 10000 Index Fund + Rs 10000 Balanced fund

There can be an infinite number of combinations. Suitability of SIP portfolio will differ from one investor to other.

If you are not sure about where to invest or looking for the best SIP for Rs 20000 per month, it’s better to take help of an investment advisor.

Note – It’s assumed that if investing Rs 20000 in equity funds, you have already taken care of debt investments (via PF, PPF, debt funds, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too.

I have already written at length as to how setting goals can help better manage investments.

In fact, it’s the basis of how the remarkably powerful and useful goal based financial planning works.

You can easily use SIPs to plan for all your goals (download free financial goal worksheet here) and then invest regularly to achieve them. Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest goal of them all?

You can even do your retirement planning or early retirement planning using mutual funds. In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio too. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact Me Directly using this form

As you must have realized by now, just knowing where to invest Rs 20000 every month is not enough. You need to invest according to your financial goals to actually live a financially fulfilling life.

I will end this post now.

But before I do, let me tell you something important – SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But in order to earn high returns offered by equity and that too on a limited monthly income that most people have, taking the SIP route is the best bet.

And please, don’t be under the impression that SIP is only for small investors. You can invest much more than just doing a SIP of 20000 per month. 🙂 You can go for (click links below for details):

Or if you want to know how much wealth you can create by investing lesser amounts, then use below links:

By investing regularly via SIP in the best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So…

Are you still thinking whether or not to start a SIP in equity mutual funds?

I would suggest you stop thinking and start acting now.

You have all the answers now and don’t need to wonder what would happen if I invest 20000 a month in mutual funds. You know exactly how much wealth your small regular systematic investments can create. So start investing if you still haven’t; or increase your SIP investments if you are already investing 20000 monthly in mutual fund SIP. Over long-term, you will do incredibly well.

## Invest Rs 25000 per month in SIP Mutual Funds

Looking to find where and how best to invest Rs 25000 per month? Or have already decided to invest 25000 per month in mutual fund SIP?

If yes, then please read on. This post will tell you how much wealth you can create if you stick with this SIP plan.

Investing Rs 25000 every month means different things to different people. For those with a salary of Rs 50,000, it means a lot. But for someone with Rs 3 lac monthly income, it’s next to nothing! In any case, investing in mutual fund SIP is a good decision and you will create a lot of wealth.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because there are several real life proofs for this (like this one where one person used SIP to create a portfolio of multiple crores).

SIP or Systematic Investment Plan is simple – Invest a fixed sum in mutual funds at a regular frequency (mostly monthly). Since most people are incapable of making big lump sum investments, SIP makes it easy for these people to make small and regular investments every month using their monthly salaries.

Now my guess is that your main concern would be to know how much money you will have when you invest Rs 25000 a month in mutual funds for several years?

Right?

So let’s do some basic calculations:

## Value of Rs 25000 per month SIP

If you check the historical SIP returns of good mutual funds, you will find that many have given average returns in excess of 15%. In fact, in many cases, it’s possible to find mutual funds giving returns higher than even 18% when periods of around 5 years are considered. But let’s be conservative and assume that the average SIP returns in 10, 15 or 20 years will be about 12% per annum.

Here is what a Rs 25000 monthly in a Systematic Investment Plan can do over the years:

• 5 year SIP of Rs 25000 monthly = Rs 21 lakh
• 10 year SIP of Rs 25000 monthly = Rs 59 lakh
• 15 year SIP of Rs 25000 monthly = Rs 1.25 crore
• 20 year SIP of Rs 25000 monthly = Rs 2.4 crore
• 25 year SIP of Rs 25000 monthly = Rs 4.5 crore
• 30 year SIP of Rs 25000 monthly = Rs 8.1 crore

Wow!

Those are some big numbers…atleast towards the end. And the picture becomes clearer when these figures are compared with the actual investments made:

• 5 year = Rs 25,000 x 12 x 5 = Rs 15 lakh
• 10 year = Rs 25,000 x 12 x 10 = Rs 30 lakh
• 15 year = Rs 25,000 x 12 x 15 = Rs 45 lakh
• 20 year = Rs 25,000 x 12 x 20 = Rs 60 lakh
• 25 year = Rs 25,000 x 12 x 25 = Rs 75 lakh
• 30 year = Rs 25,000 x 12 x 30 = Rs 90 lakh

Stunning! Isn’t it?

And notice that in just 10 years, your actual investment of Rs 30 lakh turns into Rs 59-60 lakh. It doubles over a period of 10 years!

The route of SIP investing can create a lot of wealth for you. More so, if you start early on.

So if you start investing early (let’s say at age 25-30) and continue till 60, your monthly investments of Rs 25,000 in equity funds can grow into Rs 8.1 crore in 30 years! This is the magic of compounding.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds offer 12-15% average annual returns in the long term.

And starting early is unimaginably important. Here is a detailed post that I did to highlight the huge cost of delay in investing. It’s about two friends who start investing at different ages of 25 and 35. You will be shocked to see the difference in the final corpus they create. Do read it!

## Real Example – SIP of Rs 25000 in Good Mutual Funds

The calculations above were done using simple SIP calculator based on the assumption that average SIP returns are fixed at 12%. But in reality, neither stock markets nor mutual fund NAVs move in straight lines. The returns fluctuate and don’t follow straight lines.

So here are some real life SIP examples that show how much you would have if you started investing Rs 25,000 a month via SIP in good funds some years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting January 2000, if you had invested Rs 25,000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 52.7 lac (up to July 2017).

And the value of your investments would be…

• Rs 4.36 crore in HDFC Top 200 Fund
• Rs 4.66 crore in HDFC Equity Fund
• Rs 4.07 crore in HDFC Prudence Fund

These have been achieved in little over 17 years!

We often think it’s difficult to get rich. But the above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income. We are discussing investing Rs 25,000 a month. But you can become a crorepati even if you don’t invest that much. So how to get Rs 1 crore in 15 years? The answer is to just invest Rs 20000 every month. Can’t invest that much? No worries. If you can invest just Rs 10000 per month, you can still get to Rs 1 crore in 20 years. Not bad!

So now you have the answer to your question of how to become crorepati by SIP?:-)

But…

Don’t you feel something is odd in this discussion till now?

There is. And let me highlight it for you –

There is absolutely no need to keep investing just the originally decided amount of Rs 25000 per month for 20-30 years. Your income would increase every year. So your investments should increase too. Isn’t it?

Now Rs 25000 per month investment for 17 years resulted in Rs 4-4.4 crore. Just imagine what would have happened if you had decided to go for a Step Up SIP? An SIP that increases every year in line with your income. So for example, it can be Rs 25000 in the first year, followed by SIP of 30,000 per month in next year, SIP of 35,000 per month in 3rd year and so on…. (i.e., increasing SIP by Rs 5000 every year).

So if you are planning to start a SIP, just remember that you can create ‘more’ wealth if you are able to increase the SIP amount every year.

Now ofcourse I have chosen funds that help me prove my point. And there would be several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns.

But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by doing a SIP of 25000 per month, it’s suggested not to have too many funds. Going for just 3-5 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 10000 each in two Large Cap funds + Rs 5000 Balanced fund
• Rs 10000 Balanced fund + Rs 7500 Large cap fund + Rs 7500 Small&Mid cap fund
• Rs 5000 Large Cap Fund + Rs 10000 Balanced fund + Rs 5000 each in two Small&Mid cap funds
• Rs 7500 each in two Large Cap funds + Rs 10000 Mid&Small Cap fund
• Rs 5000 in Large Cap Fund + + Rs 10000 Small&Mid cap fund + Rs 10000 in Flexi/Multi Cap Fund
• Rs 10000 Large Cap fund + Rs 5000 Balanced fund + Rs 5000 Mid&Small Cap fund
• Rs 10000 Balanced fund + Rs 10000 Mid&Small Cap fund + Rs 5000 Large cap fund
• Rs 15000 Index Fund + Rs 10000 Balanced fund

There can be an infinite number of combinations.

Suitability of SIP portfolio will differ from one investor to other. If you are not sure about where to invest or looking for the best SIP for Rs 20000 per month, it’s better to take help of an investment advisor (you can talk to me too).

Note – It’s assumed that if investing Rs 25000 in equity funds, you have already taken care of debt investments (via PF, PPF, debt funds, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too. I have already written at length as to how setting goals can help better manage investments.

In fact, it’s the basis of how the remarkably useful and powerful goal based financial planning works. You can easily use SIPs to plan for all your goals (download free financial goal worksheet here) and then invest regularly to achieve them.

Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest goal of them all?

You can even do critical retirement planning or early retirement planning using mutual funds.

In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio too. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact Me Directly using this form

As you must have realized by now, just knowing where to invest Rs 25000 every month is not enough to live a financially fulfilling life that takes care of all your financial goals. It is far more important to know how much to invest in SIP to achieve each of your financial goals.

I will end this post now. But before I do, let me tell you something important:

SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But in order to earn high returns offered by equity and that too on a limited monthly income that most people have, taking the SIP route is the best bet.

And please, don’t be under the impression that SIP is only for small investors. You can invest much more than just doing a SIP of 25000 per month. 🙂 You can go for (click links below for details):

Or if you want to know how much wealth you can create by investing lesser amounts, then use below links:

By investing regularly via SIP in best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So if you are still thinking whether or not to start a SIP in equity mutual funds, I would suggest you stop thinking and start acting now. You have all the answers now and don’t need to wonder what would happen if I invest 25000 a month in mutual funds. You know exactly how much wealth your small regular systematic investments can create.

So start investing if you still haven’t; or increase your SIP investments if you are already investing 25000 monthly in mutual fund SIP. Over long-term, you will do incredibly well.

## Invest Rs 50000 per month in SIP Mutual Fund

Do you want to know how best to invest Rs 50,000 per month? Or you have already decided to invest 50000 per month in mutual fund SIP?

Investing in mutual fund SIP is a good decision and you will create a lot of wealth… ofcourse if you stick with this SIP investment plan for long enough.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because there are several real life proofs for this (like this one where one person used SIP to create a portfolio of multiple crores).

SIP or Systematic Investment Plan is simple – Invest a fixed sum in mutual funds at a regular frequency (mostly monthly). Since most people are incapable of making big lump sum investments (worth several lacs), SIP makes it easy for these people to make small and regular investments every month using their monthly salaries.

Now I am sure you want to know how much money you will have when you invest Rs 50000 a month in mutual funds for several years?

Right?

So let’s do some basic calculations:

## Value of Rs 50000 per month SIP

If you check the historical SIP returns of good mutual funds, you will find that many have given average returns in excess of 15%. In fact, in many cases, it’s possible to find mutual funds giving returns higher than even 18% when periods of around 5 years are considered. But let’s be conservative and assume that the average SIP returns in 10, 15 or 20 years will be about 12% per annum.

Here is what a Rs 50,000 monthly in a Systematic Investment Plan can do over the years:

• 5 year SIP of Rs 50000 monthly = Rs 42 lakh
• 10 year SIP of Rs 50000 monthly = Rs 1.1 crore
• 15 year SIP of Rs 50000 monthly = Rs 2.5 crore
• 20 year SIP of Rs 50000 monthly = Rs 4.8 crore

Wow!

Those are some big numbers. And the picture becomes clearer when these figures are compared with the actual investments made:

• 5 year = Rs 50,000 x 12 x 5 = Rs 30 lakh
• 10 year = Rs 50,000 x 12 x 10 = Rs 60 lakh
• 15 year = Rs 50,000 x 12 x 15 = Rs 90 lakh
• 20 year = Rs 50,000 x 12 x 20 = Rs 1.2 crore

Stunning! Isn’t it?

The route of SIP investing can create a lot of wealth for you.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds offer 12-15% average annual returns in the long term.

## Real Example – SIP of Rs 50000 in Good Mutual Funds

The calculations shared above were done using simple SIP calculator based on the assumption that average SIP returns are fixed at 12%. But in reality, neither stock markets nor mutual fund NAVs move in straight lines. The returns fluctuate and don’t follow straight lines.

So here are some real life SIP examples to show how much you would have if you had started investing Rs 50,000 a month via SIP in good funds years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting from January 2007, if you had invested Rs 50,000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 63 lac (up to July 2017).

And the value of your investments would be…

• Rs 1.39 crore in HDFC Top 200 Fund
• Rs 1.47 crore in HDFC Equity Fund
• Rs 1.53 crore in HDFC Prudence Fund

These have been achieved in little over 10 years!

And what if you had started this SIP even earlier, say in January 2000?

In that case, your actual total investment in each would have been about Rs 1.05 crore lac (up to July 2017).

And the value of your investments would be…

• Rs 8.7 crore in HDFC Top 200 Fund
• Rs 9.3 crore in HDFC Equity Fund
• Rs 8.1 crore in HDFC Prudence Fund

These have been achieved in little over 17 years!

We often think it’s difficult to get rich. But the above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income. Ofcourse you can become a crorepati really fast if you are ready to invest Rs 50,000 a month. But even if you cannot invest that much, it’s still possible to achieve that target. So how to get Rs 1 crore in 15 years? The answer is to invest Rs 20000 every month. And how to get Rs 1 crore in 20 years? The answer is to invest Rs 10000 every month. Plain and simple.

But…

Don’t you feel something is odd in this discussion till now?

There is. And let me highlight it for you –

There is absolutely no need to keep investing just the originally decided amount of Rs 50000 per month for 10-20 years. Your income would increase every year. So your investments should increase too. Isn’t it? Now a Rs 50000 per month investment for 17 years resulted in Rs 8-9 crores.

Just imagine what would have happened if you had decided to go for a Step Up SIP?

An SIP that increases every year. So for example, it can be Rs 50000 in the first year, followed by SIP of 60,000 per month in next year, SIP of 70,000 per month in 3rd year and so on…. (i.e., increasing SIP by Rs 10000 every year).

I hope you get the picture.

If you are planning to start a SIP, just remember that you can create ‘more’ wealth if you are able to increase the SIP amount every year.

Now ofcourse I have chosen funds that help me prove my point. And there would be several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns.

But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by doing a SIP of 50000 per month, it’s suggested not to have too many funds. Going for just 4-5 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 10000 each in two Large Cap funds + Rs 20000 Balanced fund + Rs 10000 Small&Mid cap fund
• Rs 20000 Balanced fund + Rs 7500 each in two Large cap funds + Rs 15000 Small&Mid cap fund
• Rs 30000 Index Fund + Rs 10000 Balanced fund + Rs 10000 Small&Mid cap fund
• Rs 15000 in Large Cap Fund + Rs 10000 each in two Small&Mid cap fund + Rs 15000 in Flexi/Multi Cap Fund
• Rs 10000 each in two Balanced funds + Rs 10000 each in two Mid&Small Cap funds + Rs 10000 Large cap fund

There can be an infinite number of combinations. Suitability of SIP portfolio will differ from one investor to other.

If you are not sure about where to invest or looking for the best SIP for Rs 50000 per month, it’s better to take help of an investment advisor.

Note – It’s assumed that if investing Rs 50000 in equity funds, you have already taken care of debt investments (via PF, PPF, debt funds, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too. I have already written at length as to how setting goals can help better manage investments. In fact, it’s the basis of how the remarkably intuitive goal based financial planning works.

You can easily use SIPs to plan for all your goals (download free financial goal worksheet here) and then invest regularly to achieve them. Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest goal of them all?

You can even do your retirement planning or early retirement planning using mutual funds.

In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio too. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact Me Directly using this form

As you must have realized, just knowing where to invest Rs 50,000 every month is not enough to live a financially fulfilling life that takes care of all your financial goals. Talking about investing regularly in mutual funds, it is more important for you to know how much to invest in SIP to achieve your financial goals.

I will end this post now.

But before I do, let me tell you something important – SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But in order to earn high returns offered by equity and that too on a limited monthly income that most people have, taking the SIP route is the best bet.

And please, don’t be under the impression that SIP is only for small investors. You can invest much more than just doing a SIP of 50000 per month. 🙂 You can go for (click links below for details):

Or if you want to know how much wealth you can create by investing lesser amounts, then use below links:

By investing regularly via SIP in best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So…

Are you still thinking whether or not to start a SIP in equity mutual funds?

I would suggest you stop thinking and start acting now.

You have all the answers now and don’t need to wonder what would happen if I invest 50,000 a month in mutual funds. You know exactly how much wealth your small regular systematic investments can create.

So start investing if you still haven’t; or increase your SIP investments if you are already investing 50000 monthly in mutual fund SIP. Over long term, you will do incredibly well.

## Invest Rs 1 Lakh (100000) per month in SIP Mutual Fund

Do you want to know how best to invest Rs 1 lakh per month? Or you have already decided to invest Rs 1,00,000 per month in mutual fund SIP?

Investing in mutual fund SIP is a good decision and you will create a lot of wealth.

Why do I say so?

Because it’s well proven; I have benefited from it greatly myself and also because there are several real life proofs for this (like this one where one person used SIP to create a portfolio of multiple crores).

SIP or Systematic Investment Plan is simple – Invest a fixed sum in mutual funds at a regular frequency (mostly monthly). Since most people are incapable of making big lump sum investments (worth several lacs), SIP makes it easy for these people to make small and regular investments every month using their monthly salaries.

So what will be the value of your Rs 1 lakh (100000) monthly investment in mutual fund SIP after several years?

Let’s do some basic calculations:

## Value of Rs 1 lakh per month SIP

If you check the historical SIP returns of good mutual funds, you will find that many have given average returns in excess of 15%. In fact, in many cases, it’s possible to find mutual funds giving returns higher than even 18% when periods of around 5 years are considered. But let’s be conservative and assume that the average SIP returns in 10, 15 or 20 years will be about 12% per annum.

Here is what a Rs 1 lakh monthly in a Systematic Investment Plan can do over the years:

• 5 year SIP of Rs 1 lakh monthly = Rs 85 lakh
• 10 year SIP of Rs 1 lakh monthly = Rs 2.3 crore
• 15 year SIP of Rs 1 lakh monthly = Rs 5.0 crore
• 20 year SIP of Rs 1 lakh monthly = Rs 9.6 crore

Wow!

Those are some really big numbers. And the picture becomes clearer when these figures are compared with the actual investments made:

• 5 year = Rs 1 lakh x 12 x 5 = Rs 60 lakh
• 10 year = Rs 1 lakh x 12 x 10 = Rs 1.2 crore
• 15 year = Rs 1 lakh x 12 x 15 = Rs 1.8 crore
• 20 year = Rs 1 lakh x 12 x 20 = Rs 2.4 crore

Stunning! Isn’t it?

The route of SIP investing can create a lot of wealth for you.

Compared with other options like fixed deposits, PF, etc. (where you won’t get more than 7-8% returns), equity funds offer much better 12-15% average annual returns in the long term.

## Real Example – SIP of Rs 1 lakh in Good Mutual Funds

The calculations above were done using simple SIP calculator based on the theoretical assumption that average SIP returns will be 12%. But in reality, neither stock markets nor mutual fund NAVs move in straight lines. The returns fluctuate and don’t follow straight lines.

So here are some real life SIP examples to show how much you would have if you had started investing Rs 1 lakh a month via SIP in good funds years back:

Note – The choice of fund(s) or fund house is just for sharing the concept. It should not be construed as an investment recommendation.

Starting from January 2007, if you had invested Rs 50,000 per month in HDFC Top 200, HDFC Equity and HDFC Prudence, your actual total investment in each would have been about Rs 1.27 crore (up to July 2017).

And the value of your investments would be…

• Rs 2.77 crore in HDFC Top 200 Fund
• Rs 2.94 crore in HDFC Equity Fund
• Rs 3.07 crore in HDFC Prudence Fund

These have been achieved in little over 10 years!

And what if you had started this SIP even earlier, say in January 2000?

In that case, your actual total investment in each would have been about Rs 2.11 crore (up to July 2017).

And the value of your investments would be…

• Rs 18.6 crore in HDFC Top 200 Fund
• Rs 17.4 crore in HDFC Equity Fund
• Rs 16.3 crore in HDFC Prudence Fund

These have been achieved in little over 17 years!

We often think it’s difficult to get rich. But the above examples prove otherwise.

Investing in mutual fund SIPs can make you a SIP crorepati even with a normal income. Ofcourse you can become a crorepati really fast if you are ready to invest Rs 1 lakh a month. But even if you cannot invest that much, it’s still possible to achieve that target.

So how to get Rs 1 crore in 15 years? The answer is to invest Rs 20000 every month. And how to get Rs 1 crore in 20 years? The answer is to invest Rs 10000 every month. Plain and simple.

Now ofcourse I have chosen funds that help me prove my point. And there would be several other bad funds too where a systematic investment strategy would have resulted in much lower SIP returns.

But I am trying to highlight the potential of serious wealth creation here. And if you believe in the power of equity, then for most common people, the best way to invest regularly in equity is to do via mutual fund SIPs.

## Model SIP Mutual Fund Portfolio

If you wish to create a portfolio of mutual funds by doing a SIP of 50000 per month, it’s suggested not to have too many funds. Going for just 4-6 funds is more than enough.

Depending on one’s risk profile, some possible combinations are:

• Rs 25,000 each in one Large Cap, Balanced, Small&Mid Cap & Index Fund
• Rs 25,000 each in two Large Cap funds + Rs 25,000 Balanced fund + Rs 25,000 Small&Mid cap fund
• Rs 30,000 Balanced fund + Rs 20,000 each in two Large cap funds + Rs 30,000 Small&Mid cap fund
• Rs 50,000 Index Fund + Rs 30,000 Balanced fund + Rs 10,000 each in two Small&Mid cap funds
• Rs 30,000 in Large Cap Fund + Rs 15,000 each in two Small&Mid cap fund + Rs 20,000 each in two Flexi/Multi Cap Funds

There can be an infinite number of combinations.

Suitability of SIP portfolio will differ from one investor to other. If you are not sure about where to invest or looking for the best SIP for Rs 1 lakh per month, it’s better to take help of an investment advisor (can talk to me too).

Note – It’s assumed that if investing Rs 1 lakh in equity funds, you have already taken care of debt investments (via debt funds, EPF, PPF, etc.) in accordance with your asset allocation based investment plan. It is also assumed that you wish to invest for at least 5 years. Anything lower (like 2-3 years) and you should go for debt options or have a very small percentage in equities.

SIPs are really helpful when it comes to investing in equity without much effort or stress. But SIPs can be helpful when it comes to goal based investing too. I have already written at length as to how setting goals can help better manage investments. In fact, it’s the basis of how the remarkably intuitive goal based financial planning works.

You can easily use SIPs to plan for all your goals (download free financial goal worksheet here) and then invest regularly to achieve them. Goals like saving for children’s education, children’s marriage, saving for your house purchase, foreign trips, etc. can be done easily and efficiently through systematic investment plans of mutual funds.

And why leave the biggest goal of them all?

You can even do your retirement planning or early retirement planning using mutual funds.

In addition to the mandatory savings you do for your retirement (via EPF or PPF), you can use SIPs to create a good retirement mutual fund portfolio too. Investing in mutual funds for retirement is a no-brainer if you don’t want to run out of money before you die.

## Need Help?

As a professional investment advisor, I do help investors create goal-based financial plans to achieve their real financial goals. If you wish to get yourself a solid financial plan that tells you how much to invest, where to invest and for how long to invest for your financial goals, you can contact me for professional advice.

Here is how to contact me:

• Go through the Services Page to see how I create your financial plan and use the form (at the end of the page) to contact me
• Contact Me Directly using this form

As you must have realized, just knowing where to invest Rs 1 lakh every month is not enough to live a financially fulfilling life that takes care of all your financial goals. Talking about investing regularly in mutual funds, it is more important for you to know how much to invest in SIP to achieve your financial goals.

I will end this post now.

But before I do, let me tell you something important – SIP is no magic that will solve all your financial worries. Also, it does not guarantee high positive returns. But in order to earn high returns offered by equity and that too on a limited monthly income that most people have, taking the SIP route is the best bet.

And don’t worry if you can’t invest a lakh every month. You can still do very well by investing even smaller amounts. To know how much wealth you can create by investing lesser amounts, use below links:

By investing regularly via SIP in best mutual funds for long term SIP investment, you can create a solid portfolio that earns inflation-beating returns without any hassles.

So…

You have all the answers now and don’t need to wonder what would happen if I invest 1 lakh a month in mutual funds. You know exactly how much wealth your small regular systematic investments can create.

So start investing if you still haven’t; or increase your SIP investments if you are already investing in mutual funds. Over the long term, you will do incredibly well.