Mutual Fund Calculator: A Rs 10,000 SIP in this midcap fund turns into Rs 1.82 crore

financialexpress.com:

In the world of investments, two important factors define your success journey: first is picking the right investment, and second is harnessing the magic of compounding by staying invested for a longer period of time.

This formula also works in the case of mutual fund investments. There are two ways available for investing in a mutual fund scheme: you can either invest a lump sum amount or start an SIP (Systematic Investment Plan). An SIP allows an investor to start their investment journey with a small amount and contribute periodically to build substantial wealth over time. Here, we will discuss a mutual fund scheme that has given stellar returns since its inception in August 2004.

The fund, which was launched in August 2004, has grown by 19.42% annually and 3280% in absolute terms over the last around 20 years, turning a Rs 1 lakh lumpsum investment into a corpus of nearly Rs 34 lakh. A monthly SIP of Rs 10000 in this fund would have turned into a massive Rs 1.82 crore for investors.

Also read: SIP gives better returns than lump sum in mutual fund investment?

The fund has surged by 54% in the last one year, turning Rs 10K SIP into Rs 1,54,000. Its 2-year growth is 33% annualised, making Rs 10,000 SIP into around Rs 3,50,000. Returns in 3 years stood at 22% annualised, which would have made Rs 10,000 SIP into Rs 5.5 lakh.

The HSBC Midcap Fund Growth has an AUM of 10,342 crore and has delivered over 20% annualised return in the last 5 years. The fund has an expense ratio of 1.73%. The minimum investment in HSBC Midcap Fund Growth is Rs 5,000 and the minimum SIP is Rs 500.

This product is suitable for investors who are seeking long term capital appreciation and investment predominantly in midcap equity and equity