Mutual fund SIP calculator: Your ₹9,000/month equity savings can become ₹3.65 crore in 20 years; here's how

Accumulate Wealth with Equity Mutual Funds: A Smart Investor's Guide

Genius investors don't do different things; they do things differently. By investing wisely, a smart investor can become a millionaire or billionaire.

• For instance, a normal investor starts a monthly equity mutual fund SIP of ₹9,000 and keeps doing it religiously for 20 years, accumulating ₹1.36 crore.
• However, if someone increases their monthly SIP in sync with their annual income, they can accumulate almost twice as much as a typical investor.

How to Become Rich via Equity Mutual Funds?

According to Pankaj Mathpal, CEO & MD at Optima Money Managers, "Equity mutual funds offer a monthly SIP with an annual step-up offer. However, a few people choose an annual step-up. This leads to almost half of the amount which they could have accumulated by opting for the annual step-up."

Annual SIP Step-up: Key to Accelerated Growth

SEBI-registered tax and investment expert Jitendra Solanki advises opting for a 15% annual step-up SIP, which has a significant impact on one's net sum at the time of redemption.

• In normal conditions, an investor takes a 10% annual SIP step-up.
• However, a 15% annual step-up SIP can yield at least 15% annual return on one's money in a long-term time horizon of 20 years or more.

Mutual Fund SIP Calculator: A Powerful Tool for Wealth Creation

Assuming a 15% annual return on a mutual fund SIP of ₹9,000 per month, without annual step-up, the SBI Securities mutual fund calculator suggests that one would be able to accumulate ₹1,36,43,595 (₹1.36 crore) after 20 years.

Mutual Fund Calculator using SIP Step-up: Accelerate Your Wealth

Assuming the same 15% annual return on a mutual fund SIP of ₹9,000 per month, with an annual step-up of 15% (as suggested by Jitendra Solanki), the SBI Securities mutual fund calculator suggests that one would be able to accumulate ₹3,64,92,972 (₹3.65 crore) after 20 years.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.