Mutual funds have long been one of the most popular investment options for those looking to grow their wealth over time. But did you know that a simple SIP (Systematic Investment Plan) of just Rs 10,000 per month could make you a millionaire in 10 years? Yes, thanks to the impressive performance of some funds like Quant Flexi Cap Fund, investors have seen their investments multiply significantly. Let’s take a closer look at how it happened and how you can benefit from similar opportunities.
Quant Flexi Cap Fund—A Wealth Generator
If you are someone who believes in long-term investments, Quant Flexi Cap Fund is a great example of how patience pays off. Over the last 10 years, the direct plan of this scheme has delivered an annualised return of 22.03%. These kinds of returns have the potential to turn small monthly investments into significant wealth over time.
For example, if you had invested Rs 25,000 per month in this fund for the last 10 years, your total investment would have been Rs 30 lakh. But thanks to the power of compounding and the high returns generated by the fund, that investment would now be worth an impressive Rs 1.09 crore.
Breakdown of the Numbers—How Much You Could Have Earned
Here’s a simple breakdown to understand the massive returns:
- Monthly SIP: Rs 25,000
- Duration: 10 years
- Total investment: Rs 30,00,000
- Fund Value after 10 years: Rs 1.09 crore
- Profit: Rs 1.09 crore – Rs 30 lakh = Rs 79 lakh
In this case, Rs 79 lakh is the total profit that an investor would have gained after 10 years, purely from the returns of the mutual fund. For those who had opted for a Rs 10,000 SIP, the final amount would be proportionally smaller, but still impressive. A Rs 10,000 SIP would have grown to around Rs 43.68 lakh in the same period.
Why Choose Mutual Funds for Wealth Creation?
Mutual fund SIPs are known for being an effective way to invest in the stock market without having to actively manage your portfolio. When you invest through a SIP, you spread your investments over time, reducing the risk associated with market fluctuations.
The Quant Flexi Cap Fund has been a star performer in this space, delivering consistent returns that have outpaced many other financial instruments. However, it’s essential to remember that all mutual fund investments are subject to market risks, and past performance does not guarantee future returns.
Consider Capital Gains Tax on Your Returns
One important factor to consider when investing in mutual funds is the tax implications. Any profits made from equity mutual funds are subject to capital gains tax. For long-term investments (held for more than 1 year), a 10% long-term capital gains tax is applied on profits exceeding Rs 1 lakh in a financial year. Therefore, the actual amount you receive after selling your mutual fund units will be slightly lower than the gross amount shown in your portfolio.
The Power of SIPs in Growing Wealth
In conclusion, mutual fund SIPs, when chosen wisely, can be a powerful tool for wealth creation. The Quant Flexi Cap Fund is an excellent example of how even modest monthly investments can grow into substantial sums over time. But always remember to consult with a financial advisor and consider your risk tolerance before investing in any mutual fund.
Source: IndiaTV
