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A 10-year SIP in these small-cap funds could have made you crorepati

Upstox
By Upstox News Desk

4 min read | Updated on June 25, 2024, 17:56 IST

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SUMMARY

Regular investments in small-cap mutual funds through SIPs can result in great amounts of money over the period of ten years. For example, SBI, Nippon India, and HSBC small-cap funds returned significant profits by turning modest monthly investments into crores.

Achieving crorepati status through Systematic Investment Plans (SIPs): A detailed look at small-cap funds and their performance over a decade

Achieving crorepati status through Systematic Investment Plans (SIPs): A detailed look at small-cap funds and their performance over a decade

Imagine turning a modest monthly investment of ₹20,000 into a whopping crore in just 10 years. It might seem like a dream, but with the power of Systematic Investment Plans (SIPs) and a healthy dose of discipline, this can be a very real possibility. Further ahead we explore how consistent 10% step-up SIP contribution, coupled with strategic increases and smart fund selection, can pave the path to financial freedom.

Nine small-cap funds that helped to achieve crorepati status for the investors:

Scheme NameAUM (Crore)Expense Ratio (%)1 Year Returns (%)10 Years Returns (%)Since Launch Ret (%)
SBI Small Cap28375.341.5944.2324.8921.36
Nippon India Small Cap51566.111.4757.7524.7322.79
HSBC Small Cap Fund14787.251.755.9921.9923.46
Quant Small Cap21242.791.6366.9121.3713.57
DSP Small Cap13781.071.7443.6221.318.64
Kotak -Small Cap15282.621.6544.8521.1818.41
Axis Small Cap20504.371.6339.120.824.17
Franklin India Smaller Companies12797.291.7662.0220.516.91
HDFC Small Cap29175.051.644.3820.3117.27
Data as of June 24, 2024
Over the past 10 years, the SBI Small Cap fund delivered an impressive return of 24.89%. If you had invested ₹16,000 monthly, your corpus would have grown to ₹1,00,91,392.80. With a total investment of ₹30,59,985.52, you would have earned ₹70,31,407.28. This performance showcases the potential of becoming a crorepati through SIP investments.
Similarly, the Nippon India Small Cap fund achieved a 10-year return of 24.73%. By investing ₹16,000 monthly, your corpus would have reached ₹1,00,13,211.30. With the same total investment of ₹30,59,985.52, your earnings would have been ₹69,53,225.
The HSBC Small Cap Fund posted a 10-year return of 21.99%. If you had invested ₹19,000 monthly, your corpus would have accumulated to ₹1,04,12,672.31. With a total investment of ₹36,33,732.81, you’d have earned ₹67,78,939.
The Quant Small Cap fund generated a 10-year return of 21.37%. With a monthly investment of ₹19,000, your corpus would have grown to ₹1,01,05,930.52. The total invested amount is ₹36,33,732.81, your earnings would have been ₹64,72,197.
The DSP Small Cap fund recorded a 10-year return of 21.3%. By investing ₹19,000 monthly, your corpus would be ₹1,00,71,905.22. With a total investment of ₹36,33,732.81, you’d have earned ₹64,38,172.
The Kotak Small Cap fund achieved a 10-year return of 21.18%. If you had invested ₹19,000 monthly, your corpus would have grown to ₹1,00,13,858.78. The total invested amount is ₹36,33,732.81, your earnings would have been ₹63,80,125.
The Axis Small Cap fund delivered a 10-year return of 20.8%. By investing ₹20,000 monthly, your corpus would have reached ₹1,03,49,872.25. With a total investment of ₹38,24,981.90, you’d have earned ₹65,24,890.
The Franklin India Smaller Companies fund posted a 10-year return of 20.5%. With a monthly investment of ₹20,000, your corpus would be ₹1,02,01,660.66. With a total invested amount of ₹38,24,981.90, you’d have earned ₹63,76,678.
Lastly, the HDFC Small Cap fund generated a 10-year return of 20.31%. If you had invested ₹20,000 monthly, your corpus would have grown to ₹1,01,08,964.32. With a total investment of ₹38,24,981.90, your earnings would have been ₹62,83,982.

Overall, this illustrates that consistent monthly investments (SIP) in these small-cap funds for 10 years have the potential to create significant wealth, turning investors into crorepatis.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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