Latest news with #flexi
News18
19-05-2025
- Business
- News18
Want Rs 1 Crore? How Only Rs 4,800 Monthly Saving Can Make You A Crorepati
Last Updated: Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings using SIP and step-up SIP strategies. Securing your financial future should be one of the top priorities, as it reduces stress during the higher ages. For this, saving is a must. The earlier you start saving, the bigger corpus you will end up creating with less effort. Saving your money without investing it anywhere will have a negative effect as inflation will erode away your money over the years. Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings: Financial experts suggest mutual funds (MFs) are one of the effective ways to create your wealth and beat inflation. Investments in mutual funds can be done monthly or lump sum. Monthly investment in mutual funds is called a systematic investment plan (SIP). A step-Up SIP is a systematic investment plan where you increase your monthly investment amount by a fixed percentage each year — let's say, 10 per cent. This helps align your investments with your growing income and reduces the initial burden. The Financial Plan To Reach Rs 1 Crore Target Corpus: Rs 1 crore Expected Return: 12% per annum Investment Horizon: 10, 15, and 20 years Equity mutual funds and index funds in India have historically delivered 10–14 per cent annualised returns over the long term. We use 12 per cent as a conservative yet realistic return assumption. How Much To Invest Monthly — With and Without Step-Up SIP? In order to save Rs 1 crore in 15 years, you need a monthly SIP of Rs 23,000 (without step-up). However, if you raise your SIP by 10% every year, you will require Rs 9,000 per month initially. In order to create a corpus of Rs 1 crore in 20 years, you need a monthly SIP of Rs 4,800 only for the first year. However, it will have to be increased by 10 per cent every year. Here's the table indicating SIP amount (with or without step-up) to create a wealth corpus of Rs 1 crore: Monthly SIP Amount Required to Reach Rs 1 Crore Note: Step-up SIP assumes a 10% increase in monthly contribution every year. Where Should You Invest This SIP? The SIP amount will be invested in mutual funds — flexi cap funds, large- & mid-cap funds, mid-cap funds, small-cap funds, and index funds. These are the classification based on the size or the company and the risk profile of the investor. While index funds typically give an annual return of 12-14 per cent, mid-cap and small-cap can give a CAGR of around 18 per cent in the long term. However, small-cap and mid-cap funds carry relatively higher risk. Some of the popular mutual fund schemes are Parag Parikh Flexi Cap Fund, JM Financial Flexi Cap, Motilal Mid Cap Fund, HDFC Mid Cap Fund Opportunity Fund, Kotak Emerging Equity Fund, Nippon India Small Cap Fund, Axis Small Cap Fund, and Bandhan Small Cap Fund. How to Choose the Right SIP Fund? Tip: For passive investors, Index Funds or ETFs offer simplicity and low cost. Mutual Funds are subject to market risks. They also carry expense ratio, which are charged irrespective of the returns you make. One same mutual fund scheme might have different expense ratio on different platforms — go for cheaper one. There is an exit charge also if you redeem within a particular period, let's say within 90 days. What Will Be The Value Of Rs 1 Crore After 20 Years, 30 Years, and 50 Years? As the years pass, the money loses its value due to inflation. The value of Rs 100 is significantly lower than what it used to be 30 years ago. After 20 years, Rs 1 crore will only be worth about Rs 31.18 lakh in today's terms due to inflation. After 30 years, Rs 1 crore will be worth around Rs 17.41 lakh in today's currency. top videos View all After 50 years, Rs 1 crore will only be worth about Rs 5.43 lakh in today's terms due to the compounding effect of inflation. So, it is necessary to do financial planning after considering the inflation effect. First Published:
Mint
13-05-2025
- Business
- Mint
THESE 6 flexi cap mutual funds gave over 20% annualised return in past 3 years. Check list here
Before you invest in a mutual fund, it is recommended to compare the returns delivered by the scheme and compare the same with those of other schemes in the same category – be it large cap, value funds, flexi cap or other. Here, we list out the six mutual fund schemes which have delivered over 20 percent annualised return in the past three years. In other words, if someone invested ₹ 1,00,000 three years ago, the investment would have grown to ₹ 1,72,800 now by growing at an annualised rate of 20 percent. For the unversed, a flexi cap mutual fund scheme is the one which is flexible to invest its assets across market capitalisation i.e., small cap, mid cap and large cap in any proportion. However, the fund must invest at least 65 percent in equity and equity-related instruments, as per the Sebi's categorisation of mutual fund schemes. Flexi Cap Fund 3-year-return(%) Franklin India Flexi Cap Fund 20.51 HDFC Flexi Cap Fund 24.26 Invesco India Flexi Cap fund 22.39 JM Flexi Cap Fund 24.73 Motilal Oswal FC fund 23.53 Parag Parikh Flexi Cap Fund 20.48 (Source: AMFI; returns as on May 8, 2025) As one can see in the table above, JM Flexi Cap Fund has delivered 24.73 percent annualised return in the past three years and HDFC Flexi Cap Fund has given 24.26 percent in the past three years. Other schemes which have delivered more than 20 percent annualised return include Invesco India Flexi Cap fund and Motilal Oswal Flexi Cap Fund. Meanwhile, it is important to note that the past returns do not guarantee future returns. This means just because a scheme has delivered good returns in the past, it does not mean it will continue to deliver the same returns in the future as well. Aside from past returns, other factors which should affect your decision of whether to invest in a scheme or not include past performance of the fund manager, reputation of the fund house, category of scheme and overall market scenario. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
Time of India
05-05-2025
- Business
- Time of India
52% equity mutual funds outperform against their benchmarks in 3 years
Live Events Around 52% equity mutual funds have outperformed their respective benchmarks in the last three years, an analysis by ETMutualFunds showed. There were 228 equity mutual funds in the said period, of which 119 funds outperformed their respective benchmarks in the said other words, 109 funds have underperformed their respective benchmarks in the same period indicating an underperformance of 48% in the last three funds had the highest outperformance score of 100%. There were three funds in the category of which all three outperformed their respective benchmarks in the last three value funds had an outperformance score of 95% in the last three years. There were 19 funds in the category of which 18 have outperformed their respective benchmarks. Out of 19 funds, only LIC MF Value Fund has failed to outperform its benchmark in the said next category in the list was multi cap funds. The multi cap funds had an outperformance score of 71%. Out of 14 funds in the category, 10 outperformed their respective benchmarks in the said period. Axis Multicap Fund managed to outperform its benchmark in the said period, followed by ICICI Prudential Multicap Fund which outperformed its benchmark in the similar cap funds and flexi cap funds had an outperformance score of 61% and 52% respectively in the last three years. Parag Parikh Flexi Cap Fund , the largest flexi cap fund based on assets managed, has outperformed its benchmark in the same period. HDFC Flexi Cap Fund also managed to beat its benchmark in the similar of the ELSS funds have managed to beat their benchmarks in the mentioned period. Out of 36 funds in the ELSS category, 18 have managed to outperform their benchmark in the same period. SBI Long Term Equity Fund, the oldest ELSS fund, managed to outperform its benchmark in the last three ELSS Tax Saver Fund, the oldest ELSS fund, failed to beat its benchmark in the last three funds and large & mid cap funds had an outperformance score of 48% and 38% in the last three years. There were 25 focused funds in the last three years, of which 12 funds managed to outperform their benchmarks in the mentioned were 26 large & mid cap funds that have completed three years of existence in the market of which 10 have managed to outperform their 35% small cap funds outperformed against their benchmarks. Out of 23 small cap funds, eight funds have outperformed their respective benchmarks. Nippon India Small Cap Fund , the largest small cap fund based on assets managed, outperformed against its Small Cap Fund which gave 21.37% return in the last three years, outperformed its benchmark Nifty Smallcap 250 - TRI which gave 18.61% in the said period. SBI Small Cap Fund and Kotak Small Cap Fund failed to beat their benchmarks in the same cap funds had the lowest outperformance score. Around 32% mid cap funds outperformed their respective benchmarks in the last three years. HDFC Mid-Cap Opportunities Fund, the largest mid cap fund based on assets managed, managed to outperform its benchmark in the last three Oswal Midcap Fund and Nippon India Growth Fund outperformed their respective benchmarks in the mentioned considered all equity categories. We considered regular and growth options. We calculated the returns of equity schemes and their respective benchmarks in the last three the above exercise is not a recommendation. The exercise was done to evaluate which equity mutual funds have outperformed their respective benchmarks in the last three should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making investment decisions.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
