If you’re targeting to create a significant fund over the long term, SBI Flexi Cap Fund could be a fantastic option for you. By investing just ₹1000 every month through a Systematic Investment Plan (SIP), you can potentially accumulate ₹1.5 crores in 35 years!. This impressive growth is due to the power of compounding, which helps your money grow exponentially over time.
SBI Flexi Cap Fund: Ideal for Long-Term Investment
The SBI Flexi Cap Fund invests in companies of various market capitalizations, including large-cap, mid-cap, and small-cap stocks. This flexibility allows the fund to adapt to market conditions and seize growth opportunities across different market segments.
Benefits of SIP and Compounding
Investing through a SIP ensures regular and disciplined investments, which can significantly benefit from compounding. Starting with a small amount and continuing to invest regularly can lead to substantial wealth creation over time.
Returns from ₹1000 SIP
Based on an estimated annual return of 15%, here’s how your investment could grow over different time periods:
| Investment Duration | Total Investment | Estimated Fund Value |
| 10 years | ₹1,20,000 | ₹2,78,657 |
| 20 years | ₹2,40,000 | ₹15,15,955 |
| 30 years | ₹3,60,000 | ₹70,09,821 |
| 35 years | ₹4,20,000 | ₹1,48,60,645 |
Also Read : Mutual Fund for Retirement Planning
Benefits and Risks
Benefits :
- Wealth Creation: Small, regular investments can grow into a substantial fund over time.
- Market Diversification: Investing across different market caps helps reduce risks.
- Disciplined Investing: SIP encourages regular and disciplined investing.
Risks:
- Market Risk: Mutual funds are subject to market risks, and the value of your investment can fluctuate.
- Investment Horizon: Ensure you have a long-term investment horizon to fully benefit from compounding.
- Risk Assessment: Evaluate your risk tolerance and investment goals before investing.
Investing in mutual funds like the SBI Flexi Cap Fund can help you achieve your long-term financial goals. Just remember to stay informed and make decisions based on your financial situation and risk appetite.
Also Read: Best FD Interest Rates 2025: Which Bank is Offering the Highest Interest on FD?