New Delhi: Be it mutual funds or stock market, many investors are investing in them without caring about the risk. This is because such investors want higher returns. Perhaps this is the reason why the number of people investing in them is continuously increasing. One such mutual fund has made investors millionaires. The name of this mutual fund is Nippon India Growth Fund. It is a mid cap equity fund, which mainly invests in mid cap stocks. When it comes to mid-cap stocks, the risk increases here. This mutual fund of Nippon comes in very high risk category, but it is also much better in returns. This mutual fund has been giving good returns for the last several years. This fund has transformed a monthly SIP of Rs 1100 into a corpus of over Rs 5 crore. That means investors have become millionaires.
20 thousand rupees became 28 lakh rupees, this mutual fund of SBI created a stir
What is mutual fund?
Just as many people invest money in banks or FDs, similarly money is also invested in mutual funds. It is issued by any bank or financial institution. In this, you get more interest than bank or FD. In this also you can invest money in lump sum or every month. There are many types of these depending on the risk. Banks or institutions that issue mutual funds invest the money received from investors in equity, bonds, money markets etc.
How to make Rs 1100 to Rs 5 crore?
Nippon India Growth Fund has made millionaires of those investors who invested in it for the long term. In this, with a monthly SIP of Rs 1100, a fund of more than Rs 5 crore has been created in 29 years. This fund was started on 8 October 1995. It has given an average annual return of 23.75 percent since its inception.
If you had done a monthly SIP of Rs 1100 at the inception of this fund, the total investment in these 29 years would have been Rs 3,82,800. According to 23.75 percent annual return, in these 29 years you would have got about Rs 5.15 crore only from interest. In such a situation, your total fund in 29 years would have been around Rs 5.19 crore. That means you would have become a millionaire in these 29 years.
How right is it to invest in mutual funds?
Mutual funds are linked to the stock market. In such a situation, investing in them is risky. Experts say that never invest in mutual funds for short term. Whenever you plan to invest in it, make it for long term i.e. 10-15 years or more. In such a situation, the chances of getting good returns are higher.
Disclaimer: The recommendations given in this analysis are those of individual analysts or broking companies and not of NBT. We advise investors to consult certified experts before taking any investment decision. Because stock market conditions can change rapidly.