What is the average return on mutual funds in India? (2024)

What is the average return on mutual funds in India?

Looking at the seven major categories of mutual funds above, the average annualized return for 2021 was 11.54%. Large-cap stock funds performed the best, outpacing many of the returns investors may have gotten on other accounts, such as certificates of deposit (CDs), high-yield savings accounts, and even real estate.

What is the average mutual fund return?

Looking at the seven major categories of mutual funds above, the average annualized return for 2021 was 11.54%. Large-cap stock funds performed the best, outpacing many of the returns investors may have gotten on other accounts, such as certificates of deposit (CDs), high-yield savings accounts, and even real estate.

What is a good return on investment for mutual funds in India?

SIP investment

For example, you invest Rs 1,000 a month in a mutual fund scheme using the systematic investment plan or SIP route. The investment is for 10 years, with an estimated rate of return of 8% per year.

What if I invest $1,000 in mutual funds for 10 years?

Evaluating this equation, the future value of the monthly SIP of Rs 1000/month over 10 years at a 12% annual rate of return would be approximately Rs 2.32 lakhs. In this, you are making an investment of Rs 1.2 lakhs and gaining Rs 1.12 lakhs, making a total return Rs 2.32 lakhs.

How to make 1 crore in 5 years?

The essential steps to make ₹1 crore in 5 years include setting your financial goals early on, planning your path, investing in Equity Mutual Funds, and doing consistent tax planning. The popular investment options in India include stocks, bonds, ETFs, mutual funds, and ULIPs.

What if I invest 3 000 a month in SIP for 5 years?

What if I invest 3,000 a month in SIP for 5 years? If you invest 3,000 for 5 years, you will have a corpus of ₹ 2,34,247. Potential gains of ₹ 54,247 on your investment of ₹ 1,80,000. Here, the expected growth rate is assumed to be 10%.

Can we get 15% return on mutual fund?

Two schemes from Bandhan Mutual Fund, HDFC Mutual Fund, JM Mutual Fund, Kotak Mutual Fund, and SBI Mutual Fund offered more than 15% in three, five, seven, and 10-year horizons.

What is a good 10 year return on a mutual fund?

Is a 10% return on a mutual fund good? Yes, a 10% return on a mutual fund is considered a good return. What is the average ten-year return on mutual funds in India? The average ten-year return on mutual funds in India is 20%.

What if I invest $50,000 in mutual fund?

Considering 8% returns, an investment of Rs 50,000 can fetch you Rs 2,33,051 in 20 years. Not suitable for long-term wealth creation or investors with a high-risk appetite.

Is 2023 a good time to invest in mutual funds?

Smallcap funds rewarded investors with a 37 percent returns on average in 2023, midcap funds with 32 percent, while largecap funds delivered 20 percent returns on average. On that note, here are the five things that had the most impact on your MF investments in 2023.

What if I invest $5,000 in SIP for 10 years?

The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 27.7 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 24.8 lakh in 10 years.

What is SIP 5000 per month for 20 years?

5000 per month for tenure of 20 years or so you can build a corpus of Rs. 1 Crore. You can easily compare different SIP schemes online and check out various mutual fund^^ portfolios. You can pick a portfolio as per the investment amount, risk appetite and historical returns that the fund house has been offering.

What is the value of 1 lakh after 20 years?

Additionally, the value decreases even more with a longer time horizon. Assuming an annual inflation rate of 5%, the value of one lakh will be about INR 37 thousand, INR 29 thousand, and INR 23 thousand after 20, 25, and 30 years, respectively. The answer is to set aside money that is adjusted for inflation.

Is 2 crore enough to retire in India?

However, considering inflation, it would be better to aim for a corpus of Rs 2 crore as this would allow you to start from the inflation-adjusted value of Rs 30,000 in 20 years, which is around Rs 96,000 per month.

How much wealth should I have at 35?

One common benchmark is to have two times your annual salary in net worth by age 35. So, for example, say that you earn the U.S. median income of $74,500. This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings.

Can I retire with 3 crore in India?

For example, if you want to retire in 40 years, estimate your yearly expenses after retirement to be around ₹10 lakhs. So, with an inflation rate of 7%, you will have to save 3 crores for your retirement. However, this goal can be achieved by making some effective investments.

Can I double my money in 5 years?

As a rate of return, long-term mutual funds can offer rates between 12% and 15% per year. With these mutual funds, it may take between 5 and 6 years to double your money.

What happens if I invest 20000 a month in SIP for 10 years?

Upon the investment and year mentioned above, one can conclude that the investor, who invested 20000 per month for 10 years, generates an income of INR 47 lakh. Therefore, it means he invested INR 24 lakh in the first ten years and earned around INR 48 lakh, twice the amount of the original investment in 10 years.

What ROI will double your money in 6 years?

For example, to double your money in six years, you would need a rate of return of 12%.

How to get 5 crores?

Talukdar says, “If the same person starts investing at 40, she would need to invest Rs 50,543 per month for the next 20 years to build Rs 5 crore by 60—almost twice what is required if she had started investing five years earlier. This illustrates how important it is to start investing early.”

What is the 15x15x15 rule?

What is the 15x15x15 rule in mutual funds? The mutual fund 15x15x15 rule simply put means invest INR 15000 every month for 15 years in a stock that can offer an interest rate of 15% on an annual basis, then your investment will amount to INR 1,00,26,601/- after 15 years.

What if I invest $1,000 a month in mutual funds for 20 years?

If you were to stay invested for a shorter duration, say 20 years, you'd invest Rs 2,40,000, but your portfolio value would be Rs 9.89 lakh.

What is the 8 4 3 rule in SIP?

One of the strategies for compounding money through mutual funds is to use the 8-4-3 rule, where the compounding effect grows exponentially. In the initial 8 years, the compounding effect shows good results, but its speed increases in the next 4 years and super-exponentially in the following 3 years.

Is 7 crore enough to retire in India?

Just as a rule of thumb, if you have got post-tax annual expense of about Rs 20 lakh, you need a minimum corpus of about Rs 5-6 crore just to maintain that lifestyle, inflation adjusted. So keeping real about what that number is important.

Is 10 crore enough to retire in India?

Assuming your life expectancy to be 80-90 years, this corpus shall easily help you get Rs 1.5 lakh per month for your retirement. The only suggestion is to have adequate medical insurance and term insurance in place.

References

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