FAQs
What Is 7-5-3-1 Rule in SIP? The 7-5-3-1 Rule of SIP advocates for long-term equity investment, diversification, and incremental SIP growth to maximise returns. It offers valuable strategies for a rewarding investment journey.
What is the 7/5/3-1 rule in mutual fund SIP investment? ›
What Is 7-5-3-1 Rule in SIP? The 7-5-3-1 Rule of SIP advocates for long-term equity investment, diversification, and incremental SIP growth to maximise returns. It offers valuable strategies for a rewarding investment journey.
What is the best way to invest in SIP? ›
How to Invest in Systematic Investment Plan (SIP)
- Set investment goals – The most important step is to know your risk tolerance. ...
- Choose a Mutual Fund scheme – There are various schemes available in the market. ...
- Apply – Once you have chosen your preferred scheme, you can now apply for the SIP of your choice.
At the core of the SIP strategy lies the 7-5-3-1 rule, which stresses a seven-year investment tenure. Proponents of this rule say seven years is the minimum holding period, which has not seen negative returns in the market as the market goes through a complete cycle in around seven years.
Which SIP is best for $1000 per month? ›
- Best SIP Plans for INR 1000 Investment Per Month.
- ICICI Prudential BHARAT 22 FOF - Direct Plan.
- Motilal Oswal Midcap Fund - Direct Plan.
- Bank of India Small Cap Fund - Direct Plan.
- Quant Small Cap Fund - Direct Plan.
- Mirae Asset Great Consumer Fund - Direct Growth.
- Mahindra Manulife Focused Fund - Regular Growth.
If you invest 5,000 INR per month for a period of 20 years and you estimate a return of 12% then you can expect the value of your investment to be around 50 lakh rupees. If you instead invested for 30 years and the rate of return remained the same then the value of your investment would be around 1.7 crore rupees.
What if I invest 3 000 a month in SIP for 5 years? ›
If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.
What happens if I invest $1,000 in SIP for 20 years? ›
Based on this data you will have approx 08–09 lakhs. Here your money will be safe or have zero risk. Mid Cap Mutual Fund:- If you invest Rs 1000/per month for 20 yrs in Mid cap mutual fund, Assuming that 15–16 % interest rate. You will have approx 15–16 lakhs.In long term all mutual funds are safe.
What if I invest $10,000 a month in SIP? ›
The 8-4-3 rule of compounding can be your way to achieve the Rs 1 crore corpus goal. Jiral Mehta, Senior Research Analyst, FundsIndia said that in this strategy, if you invest Rs 10,000 every month, assuming annual returns of 12 per cent, it takes 8 years to reach the Rs 16 lakh maturity amount.
What happens if you invest 2000 per month in SIP? ›
Investing ₹2000 per month in SIPs for 20 years is a powerful way to build long-term wealth. You can pave the way for a financially secure future with a disciplined approach and the right choice of mutual funds. So why wait? Invest in these options today and make 2024 a year of SIPs!
SIP Crorepati Route: Consider a scenario where you begin your SIP journey with a monthly investment of Rs 10,000. If you commit to increasing this amount by 5% annually, you can accumulate a substantial sum of Rs 1 crore in approximately 18.3 years, or 220 months.
Which type of SIP gives highest return? ›
Best SIP Plans in India in 2024
| Returns |
|---|
| Fund Name | 3 Years | 10 Years |
|---|
| Pure Stock Fund Bajaj Allianz | 19.31% | 15.67% View Plan |
| Diversified Equity Fund HDFC Standard | 15.67% | 15.12% View Plan |
| Growth Super Fund Max Life | 15.78% | 13.57% View Plan |
7 more rowsBy investing Rs 50,000 per month one time, he could look to accumulate Rs. 19.16 lakhs in twenty years with 20% annualized returns. We have taken a weighted average of the return of each fund after considering the lower 3-year and 5-year returns as the return over the 20 years.
What is the 15-15-15 rule in SIP? ›
How to calculate 15-15-15 rule? To calculate the 15-15-15 rule, multiply 15% of your monthly income by 12 to get the annual investment amount. Invest this amount monthly for 15 years in a mutual fund targeting 15% annual returns. Use an SIP calculator to project potential earnings based on these inputs.
What is rule of 72 for SIP? ›
A simple method for estimating how long it will take for an investment to double based on its fixed yearly rate of return is the Rule of 72. You may calculate roughly how long it will take for your portfolio to double in size by dividing 72 by the fixed rate of return.
What is the 3-5-10 rule for mutual funds? ›
Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).
What is the 80 20 rule in mutual funds? ›
You have a low risk appetite and cannot tolerate market fluctuations. You can apply the 80-20 rule by investing 80% of your portfolio in debt mutual funds that invest in high-quality and low-duration securities, and 20% in equity mutual funds that can provide some growth and diversification.
