Table of Contents
- 1 What is the minimum rate of return in mutual funds?
- 2 What is minimum return in SIP?
- 3 What is the average holding period for a mutual fund?
- 4 What are the tax implications of investing in mutual funds?
- 5 What is principal amount of a mutual fund?
- 6 How to choose the right mutual fund scheme for Your Goals?
What is the minimum rate of return in mutual funds?
There is no minimum return or a sure-shot figure when it comes to investing in stock market-related products. However, the projections for future returns is usually based on the past trends. The broader markets, such as Nifty, have delivered a compounded annual growth rate (CAGR) of around 9-10\% over the past 10 years.
What is minimum return in SIP?
The table below shows the best equity funds:
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan | 34.05\% | ₹1000 |
| ICICI Prudential Technology Fund | 33.33\% | ₹5000 |
| TATA Digital India Fund DIRECT Plan Growth | 35.55\% | ₹5000 |
| Aditya Birla Sun Life Digital India Fund Growth | 33.13\% | — |
How do you calculate IRR for mutual funds?
Internal rate of return or IRR is that rate of return at which NPV from the above investment & cash flows will become zero. IRR is the rate of interest that makes the sum of all cash flows zero, and is useful to compare one investment to another….What is IRR & how to calculate it?
| Compute IRR on Excel | |
|---|---|
| Year 4 | 350000 |
| Year 5 | 350000 |
| IRR | 14\% |
What is the average holding period for a mutual fund?
The average holding period for retail investors in equity mutual funds is more than 24 months in 55.3 per cent cases.
What are the tax implications of investing in mutual funds?
Mutual funds are classified into equity-oriented and debt-oriented for tax purposes. If you invest in equity-oriented Mutual Funds for less than 12 months, you pay 15\% tax on returns. For any duration above that, you pay 10\% on gains exceeding ₹1 lakh.
Which are the top 10 best mutual funds in India?
1 Aditya Birla Sun Life Mutual Fund 2 Axis Mutual Fund 3 BNP Paribas Mutual Fund 4 Canara Robeco Mutual Fund 5 DSP Mutual Fund 6 Edelweiss Mutual Fund 7 Franklin Templeton Mutual Fund 8 HDFC Mutual Fund 9 ICICI Prudential Mutual Fund 10 IDFC Mutual Fund
What is principal amount of a mutual fund?
The principal amount here consists of the periodic payments (usually monthly) that individuals make in a mutual fund scheme via Systematic Investment Plan (SIP). For example if you make a SIP of Rs.500 for 12 months and the NAV when you purchase units if Rs. 5, then you would have purchased 100 units of the scheme.
How to choose the right mutual fund scheme for Your Goals?
There are multiple mutual fund schemes available today that cater to specific life goals, such as children’s education or marriage, retirement, or buying a house. To begin with, you must identify the time frame of your goals. For instance, you want to save up for a vacation in the next year or buy a gadget, these are considered short-term goals.