Amidst the ever increasing awareness in the Indian stock market, mutual fund investment is becoming the first choice of people. Especially Systematic Investment Plan i.e. SIP has made investment avenues very easy for the common man. According to recently revealed data, selected top 5 SIP funds of the country have made investors rich. These great funds have given strong returns of up to 24.4% to investors who started their investment journey with a small initial amount of just Rs 100. If you also want to create a big fund with less money, then this news is very special for you because we are going to tell you in detail about such best options. The growing craze of mutual funds and SIP and its meaning In today's era where inflation is continuously increasing, the returns received on traditional investment options like bank FD or savings accounts are often not sufficient. In such a situation, mutual funds have given investors a great opportunity to beat inflation. The biggest advantage of investing through SIP is that you do not need to invest a large amount at once. You can start investing with a small amount like Rs 500 or even Rs 100 every month as per your convenience. The power of Rupee-Cost Averaging and Compound Interest i.e. Power of Compounding together turns your small investment into a huge corpus in the long run. Know what is this amazing mathematics of Top 5 SIPs. Based on the recent financial performance, the five major mutual fund schemes which have attracted the investors the most, have recorded an average annual return ranging from 20% to 24.4%. Investors who invest in these funds put in money every month in a disciplined manner and the result is that they get handsome returns despite short-term market fluctuations. Financial experts believe that when you invest in SIP with a long-term perspective, a market downturn becomes an opportunity for you to buy more units. This is why these top 5 funds have strengthened investors' portfolios and helped them become financially independent. How to create a big fund with less investment? Often people have this question in their mind that can a fund worth crores be created even with small savings? The answer is yes, provided your investment method is correct and disciplined. Suppose you start a SIP of ₹100 or a few thousand rupees every month and continue it for 10 to 15 years or more, then the power of compounding starts working its wonders. The returns may seem small initially, but as time passes, the interest you earn on the principal amount deposited also starts earning interest. This is why these top performing funds have helped even small investors taste big returns and help them achieve their financial goals. What things should be kept in mind before investing? Before investing money in any mutual fund or SIP, it is very important to keep some important things in mind so that your money remains safe and you can get the right profits at the right time. First of all, understand your financial goals and risk appetite. Apart from this, also check the track record of the fund in the last 3 to 5 years, the experience of the fund manager and the expense ratio of that scheme. Market experts advise to never invest blindly by taking shortcuts or just looking at past returns. If needed, choose your portfolio only after consulting a certified financial advisor so that you do not have to face any kind of financial problem in future.
