SIP Investment Tips: Indian investors are investing under Systematic Investment Plan (SIP) as a good investment. Many investors set a goal for themselves and choose the path of investment through SIP. If you are also thinking of investing in small amounts for a long time, then you can also think about doing SIP.

However, investing in SIP depends on the stock market. Therefore, changes may also be seen in its returns. If you are thinking of making a corpus of crores of rupees through SIP, then today we are going to tell you about this complete calculation.

SIP investment for corpus worth crores of rupees

If you start SIP of Rs 12,000 every month and continue this investment for about 19 years, then your total investment will be Rs 27,36,000. If you get the expected return of 12 percent from SIP, you will have accumulated a good fund.

The real game will be compounding in the long run. If all the market conditions remain favorable for you, then after 19 years you will have a corpus of Rs 1,05,03,905 crore. In this total return, you will get only interest of about Rs 77,67,905 lakh.

What is SIP?

Systematic Investment Plan itself is called SIP. People invest in mutual funds through SIP. In this investment, you invest for a long time in small amounts at regular time and for a fixed period.

In this way, people can create a large lump sum corpus fund in the long run. However, investing in SIP is subject to market risks.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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Mutual Fund Portfolio Management: Due to abundance of investment options, investors sometimes have to face problems. Investors are not able to take decisions regarding all these. If you have also invested in different mutual funds under SIP, then you can understand this problem.

Due to good funds, investors invest small amounts in different funds. This makes his portfolio appear scattered. The biggest problem arises when you have to select some of these funds and leave the rest. According to the report of ETWealth, expert Ravi Kumar has told how to deal with this problem. He has given information on how you can manage your portfolio.

5 to 6 funds are enough

Ravi Kumar has informed that, if an investor regularly monitors his funds and has an understanding of funds, then only 5 to 6 mutual funds are enough for such investors. He told that the role of every fund is different, hence one should avoid investing in similar companies. Different funds should always be selected on the advice of market experts. So that there is diversity in the portfolio.

Keep these things in mind while managing funds

Many investors believe that the more funds there are, the better the diversification, but this is not necessary. According to Ravi, the real thing is how different the funds you choose are from each other and how balanced their investment style is. If you have invested all your money in the same type of shares, then the number of funds and companies may increase, but you will not get much benefit by staying in the same segment.

Giving further information, Ravi Kumar said that every equity fund has its own style. Some focus on growth stocks, while others focus on value or quality stocks. Therefore, it is important to include such funds in the portfolio which have different investment strategies, so that balance is maintained even in the ups and downs of the market.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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