SIPs can help turn Rs. 10,000 to Rs. 22.66 lacs in 10 years.
- Date : 27/10/2022
- Read: 3 mins
A SIP or systematic investment plan is an investment tool for the long term.
A SIP or systematic investment plan is an investment tool for the long term. SIP helps investors to minimize their market risk as an investor does not need to stress over market volatility. SIP gives an average return like the equity market during the investment period.
Also Read: Use a SIP calculator to determine how much return your SIP can provide
UTI Value Opportunities Fund: Its regular plan is a great example of the return a SIP provides. If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs. This mutual fund has provided around 25.5% annual return in the past two years, and its absolute return has been 57.6%. The past three years have yielded a 13.5% annual return and 46% absolute. The return for the annual category for the previous three years has been 11.85%. It gave an 11.25% annual return in the past five years, and the category return was 8.65% during this time. This fund's regular plan has provided a 12.2% annual return in the past ten years with over 215% absolute return.
Calculator for SIP
If an investor had invested Rs. 10,000 monthly in this fund around three years back, the amount would have grown to Rs. 4.46 lacs. If an investor collected the same amount over five years, the amount would have been Rs. 8.12 lacs. Talking about seven years, the amount would have been Rs. 12.65 lacs, and for ten years, it would have been Rs. 22.66 lacs.
Also Read: Can SIPs beat slowdowns?
The fund has invested 98.43$ in Indian equities. It has a 52.23% large-cap exposure, mid-cap exposure of 14.34%, and small-cap exposure of 12.22%. UTI Value Opportunities Fund has holdings in stocks like Cipla, Bharti Airtel, ITC, Bajaj Auto, Infosys, Axis Bank, SBI, ICICI Bank, and HDFC Bank.
Peers
Nippon India Value Fund - Growth, IDFC Sterling Value Fund - Regular Plan - Growth, Templeton India Value Fund - Growth, and ICICI Prudential Value Discovery Fund-Growth are some of its competitors or peers that have given excellent returns to the SIP investors.
Conclusion
A SIP has the power to multiply your money manifolds, and we have just seen how. It is a very wise move to invest in SIP as an investor. Beginners and experts can both invest in SIPs and expect great returns with low, moderate, or high risk. It depends on an investor's risk capacity and the fund they choose.
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As an enthusiast with extensive knowledge in financial investments, particularly in the realm of systematic investment plans (SIPs), let me assure you that the information provided in the article aligns with the principles of SIP investing.
The article emphasizes the long-term nature of SIPs as an investment tool, designed to minimize market risk by spreading investments over time. This is a sound strategy, and the assertion that SIPs provide an average return resembling the equity market during the investment period is accurate.
The specific example of the UTI Value Opportunities Fund is noteworthy. The article states that investing Rs. 10,000 as an SIP for a decade would result in a total return of Rs. 21.66 lacs. The fund's historical performance is detailed, indicating impressive annual returns over various time frames, and the mention of a SIP calculator to estimate returns adds practicality to the discussion.
Furthermore, the breakdown of the fund's portfolio allocation, including exposure to large-cap, mid-cap, and small-cap stocks, provides valuable insights for potential investors. Mentioning competitors or peers, such as Nippon India Value Fund and ICICI Prudential Value Discovery Fund, contributes to a comprehensive view of the market.
In conclusion, the article effectively communicates the potential of SIPs to multiply investments significantly over time. It encourages both beginners and experts to consider SIPs, highlighting the importance of aligning investment choices with individual risk capacity. The emphasis on the fund chosen and the duration of investment reflects a nuanced understanding of SIP strategies.
If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
