Power of Compounding : Rs 10,000 monthly SIP has grown up to Rs 2.13 crore in these top funds in 20 years

Compound power in SIPS: Although investors have worried about this recent market correction and many have stopped their SIP or systematic investment plans, experts have affirmed that they are a natural phenomenon in the investment cycle. In fact, most of them praised this as an opportunity to visit the portfolio of one and add their investments.

How do mutual funds work to deliver compound yields?

In general, mutual funds of the investors of the fund group and their investment are transmitted through asset classes, including shares, bonds and other kinds of fixed assets. And now these classes of assets harvest interest or return in several ways, including dividends, interest, among others, which again enter mutual funds to obtain substantial yields approximately the time

Therefore, there is now a compound effect created as beans that obtain income in their initial investment also earn money with the reinvest corpus, increasing their richness exponentially over time.

In addition, as there is always a positive side for any aspect, you can see the correction times in the investment of mutual funds such as the moments in which you can obtain more units in an investment of mutual funds. Then, instead of the execution of the bull in its investment value, you can see a bull with its units at such moments.

For example, if you invest RS 1000 assuming a performance or 10 percent per year, after a year, its investment grows at RS 1100. Next year, the 10 percent yield is carried out in RS 1100, multiplying its investment.

Compound effect on SIP

SIP, which is mainly for long -term purposes and is aimed at specific objectives in the future, offers improved compound benefits together with the average sauces of rupee costs that anyone helps you make a longer return time.

Without a subway, with SIP and investment of mutual funds, one cannot ignore the fact that the thesis performance is linked to the market and comes with its own risk and reward. There are also rates linked to fund management, the relationship of expenses and others that to some extent can affect the compound performance benefit.

Therefore, to ensure that your investments align with your future financial objectives, it is imperative that you stay with your long -term financial objectives, as well as once you check your portfolio for any change.

Top 10 mutual funds that have converted RS 10000 sip to RS 2.13 million rupees as of March 28, 2025

Note The investment in these funds through the SIP route began on April 1, 2005 and now they are worth more than 2 million rupees.

And if for this investment, an investor had tasks in the annual sip, then his wealth would have had more.

Discharge of responsibility: This is not an investment advice to invest in this fund. Always seek your risk appetite along with your future financial objectives to align your investments in accordance.