Rs 1 Cr corpus in just 10 years through SIP with small-cap funds

Making your investments work hard for you is the main goal of a structured investment plan, or SIP. You have a few choices if your goal is to earn one crore during the next ten years.

• Combine lump sum and SIP: If you have a starting amount, consider a lump sum investment to jumpstart your growth. Then, add regular SIP contributions to benefit from compounding.
• Risk and reward: While large-cap funds offer lower risk, their returns may be moderate. Consider diversifying with a portion allocated to small-cap or sector funds for potentially higher returns, but be aware of the increased risk involved.
• Gradual increase: This strategy focuses on consistently increasing your monthly SIP amount. By squeezing more from your savings over time, you can reach your goal even with smaller initial contributions.

Here are three small-cap mutual funds where if you have made SIP with a 10% increase each year your investment would have turned into 1 crore in just 10 years.

Nippon India Small Cap Fund

With a monthly investment of Rs 12,000 and a yearly step-up of 10%, the Nippon India Small Cap scheme has yielded impressive returns over the past decade, boasting a substantial 10-year return of 28.18%. This has translated into a handsome investment sum of over Rs 1 crore, demonstrating the potential of small-cap investments when coupled with disciplined SIP contributions and periodic step-ups.

SBI Small Cap Fund

Investors in the SBI Small Cap scheme have witnessed remarkable growth over the past decade, as evidenced by its impressive 10-year return of 26.82%. With a monthly investment of Rs 13,000 and a step-up of 10%, this scheme has transformed consistent SIP contributions into a substantial investment corpus exceeding Rs 1 crore.

DSP Small Cap Fund

The DSP Small Cap scheme has delivered commendable results over the past decade, offering investors a compelling 10-year return of 24.52%. Through monthly investments of Rs 15,000 and a step-up of 10%, investors have witnessed their capital grow significantly, culminating in an investment corpus surpassing Rs 1 crore.

Dreaming of financial freedom? Use our Online SIP Calculator to see how regular investments can add up to grow wealth. Take the first step towards your goals. Calculate now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.