SIP: Do you want a car worth 15 lakhs in 5 years? How much SIP will you need and which fund is right?

Everyone wants to buy a car, but due to a lack of funds, they are unable to do so. You can overcome this problem with the right investment and planning. SIP is the easiest and most popular way to invest in mutual funds.

Through this, you can create a huge fund by depositing in installments. First, let us know how much installment a person will have to invest if he wants to deposit Rs 15 lakh in 5 years.

Calculation

According to a 16 percent return, if a person wants to deposit Rs 15 lakh in 5 years, then he will have to deposit Rs 17 every month. In this way, he will be able to create a fund of Rs 15 lakh in 5 years. The amount invested by you in these 5 years will be Rs 10,20,000. With this, you will get a total return of Rs 5,01,767.

Now let us know which fund will be better for you. We have taken a balanced fund here. The return received in a mutual fund depends on the fluctuations in the market. Therefore, invest in it only on the advice of an expert.

These funds gave excellent returns

Fund Return (in 5 years) Expense Ratio

HDFC Balance Advantage fund 24.42% 0.75%
Baroda BNP Paribas Balance Advantage fund 16.71% 0.74%
Aditya Birla SL Balance Advantage Fund 15.52% 0.68%
Nippon India Balance Advantage Fund 15.40% 0.55%

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