₹30,000 Monthly SIP to ₹1 Cr in 10 Years – Nippon India Multicap Funds’ Approach

In today’s challenging financial world, investors are always on the lookout for effective strategies to accumulate wealth over time. For this, multi-cap mutual funds have become an attractive option.

Among a wide range of mutual funds in this category, Nippon India Multi Cap Fund has attracted significant attention from investors because of its diversification and the ability to produce capital gains in the long run.  In this blog, we will explore how a monthly SIP of ₹30,000 in Nippon India Multi Cap Fund could pave the way to achieving a corpus of ₹1 crore.

Understanding Nippon India Multi Cap Funds

The Nippon India Multi Cap Fund invests in stocks of various companies irrespective of their market capitalization, across sectors and industries that reflect their inherent potential for growth and high returns in the long term. This fund attempts to combine the stability of large-cap stocks with the growth potential of mid and small-cap companies.

Some key features of these Multi Cap Funds are discussed below:

Diversified Portfolio

The fund aims to invest at least 25% of its capital in large, mid, and small-cap firms. This diversification seeks to capitalize on market trends and provide liquidity when the market is volatile.

Growth-Focused Strategy

The fund investment strategy involves focusing on ‘growth at reasonable valuations’. It aims to discover opportunities before they are widely visible in the market, and it targets investing in companies with solid financials and long-term strategies.

Active Management

The fund uses both top-down and bottom-up approaches, to take active sector calls. This strategy allows the fund to be well-positioned to capture current market opportunities and adapt to changing economic environments.

How SIP Can Be a Powerful Tool in Wealth Generation?

SIP or Systematic Investment Plan has become one of the most effective methods to build wealth in the financial world. They allow investors to accumulate a significant amount of money over long periods by investing a regular amount of money at fixed intervals. 

SIP works on a very basic but effective principle of compounding. Investors decide on a mutual fund scheme and invest a fixed sum periodically, generally monthly or yearly. The invested amount is deducted from the investor’s bank account and credited to the selected mutual fund scheme. SIP investing harnesses the power of rupee-cost averaging.  

When market prices are low, investors acquire more units, and when prices are high, they receive fewer units. This approach assists in navigating market fluctuations and minimizes the average cost of investment in the long run. 

₹1 Cr with ₹30,000 Monthly SIP in Nippon India Multicap Fund

An investor can achieve a ₹1 crore corpus with a ₹30,000 monthly SIP in Nippon India multi-cap fund over 10 years by using the right strategy and exploiting the market conditions.

An SIP calculator is a tool that helps an investor estimate the returns from the SIP investment. It operates using a specific formula: This is given by the formula,

M = P × ({[1 + i]^n − 1}/i) × (1 + i) 

where M is the maturity amount, 

P is the monthly SIP investment, 

n is the number of payments and 

i is the periodic rate of interest.

For instance, to gain  ₹1 crore by investing in the Nippon Multi-cap Fund, you will need a monthly investment of around ₹30,000 for 10 years at a return of 18%. This calculation shows the effectiveness of SIPs and the power of regular, disciplined investing through SIPs.

Conclusion

Nippon India Multi Cap Fund is an attractive investment option for those investors who want to create long-term wealth. The diversified approach, growth-oriented approach, and past performance of the fund make it suitable for those who are interested in utilizing the power of SIP investing.