How Much Can I Earn in 10 Years If I Invest Rs.10,000 and in Which Funds? - Groww (2024)

Even a small investment of Rs. 10,000 in mutual funds can generate substantial returns over a long investment period. The returns will be dependent on various factors like the choice of fund, market trends, and the performance of the particular scheme.

The following sections will discuss the returns of various investment options and how much you can expect to earn by investing Rs. 10,000 for 10 years.

Equity Mutual Funds

These mutual funds primarily invest at least 65% of their fund corpus in stocks and equity-related instruments. The gains and losses of underlying stocks in an equity fund’s portfolio reflect its NAV (Net Asset Value) and, consequently, your profits or losses.

Equity mutual funds carry the highest risk among mutual funds but also offer the possibility of the highest returns. However, their risks are usually lower than investments in direct equity investments as these funds offer a diversified portfolio.

Pros:

  • Offers a range of investment options (large-cap funds, mid-cap funds, small-cap funds, etc.)
  • Diversifies the portfolio across asset sub-classes and sectors to reduce portfolio risk
  • Has the potential to offer considerable and inflation-beating returns
  • Ideal for inexperienced investors with a long-term investment horizon

Moreover, equity funds are a suitable option for investors seeking equity exposure with limited funds.

Cons:

  • These funds tend to have higher management costs.
  • Since they are highly reactive to market volatility, they may not work well for investors with a short-term investment horizon.
  • The performance of an equity fund is highly dependent on the expertise of fund managers.

Hybrid Mutual Funds

These mutual funds invest in both stocks and debt instruments to diversify risk and returns. Hybrid funds can offer higher returns than debt funds but also carry higher risks.

The goal of hybrid funds is to combine the benefits of stocks and debt instruments. In other words, these funds can generate decent returns at moderate levels of risk. Fund managers of these funds allocate the fund corpus to equity and debt instruments based on the objectives of the scheme.

Pros:

  • Offers more stability than pure equity funds
  • Provides diversification by investing in a wide range of stocks and debt instruments
  • Ideal for investors looking for a prudent balance of risk and returns (in this regard, the choice of hybrid fund is crucial)

Cons:

  • Since hybrid funds invest in equity, their performance is impacted by market volatility.
  • Fund managers may not have the skills required to manage both equity and debt allocation.
  • If a fund invests in debt securities with low credit risk, it can lead to the loss of interest as well as capital.

Debt Mutual Funds

These mutual funds invest primarily in fixed-income debt instruments, including treasury bills, corporate bonds, debentures, and money-market instruments. Debt funds aim to considerably reduce the risk factor for investors while offering steady returns.

Conservative investors who are unwilling to participate in a highly volatile equity market may consider these funds. Though it generates lower returns compared to other mutual funds, it is associated with low volatility.

Pros:

  • Debt funds with a low maturity period are the least risky among mutual funds.
  • These schemes can offer higher returns than bank fixed deposits.
  • Debt funds offer higher stability than equity-oriented funds

Cons:

  • The institution issuing corporate bonds may default in paying interest
  • Debt funds carry interest rate risk
  • Historically, stock markets have outperformed debt most of the time

How Much Can You Get from an Investment of Rs. 10,000 in 10 Years?

Firstly, the performance of an investment in mutual funds is dependent on numerous factors, including market fluctuations, the performance of a particular scheme, and the fund manager’s decision. Each and every investment may perform differently, and there are no guaranteed returns.

With this in mind, let us examine the following examples to get a rough estimate of returns on lumpsum investments for a period of 10 years. We will use the lumpsum calculator to figure out the estimated returns.

  • Rs. 10,000 investment in equity funds at an expected return rate of 12%:

Estimated returns = Rs. 21,058 and total value of investment = Rs. 31,058

  • Rs. 10,000 investment in hybrid funds at an expected return rate of 8%:

Estimated returns = Rs. 11,589 and total value of investment = Rs. 21,589

  • Rs. 10,000 investment in debt funds at an expected return rate of 6%:

Estimated returns = Rs. 7908 and total value of investment = Rs. 17,908

If the investor wants to use his Rs. 10,000 for wealth creation and has a high-risk appetite, he can triple his investment in 10 years. If he wants to keep a balance between equity and debt, he can still double his investment.

On the other hand, if he wants the minimum risks with short-duration debt funds, he can make around Rs. 8000 with an investment of Rs. 10,000 in 10 years.

Final Word

There is no one-size-fits-all solution in the case of mutual fund investments. Individuals must consider their financial goals and risk appetite before allocating their savings to a mutual fund scheme.

Furthermore, it is crucial to check certain factors, such as the experience of the fund manager and past returns of the fund, before investing.

You May Also Be Interested to Know

1.

How to Save Money

2.

Where To Invest Money In India?

3.

Reasons Why You Must Plan Your Finances

4.

Investment Options For Self-Employed Individuals

5.

Financial Planning for Beginners

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

How Much Can I Earn in 10 Years If I Invest Rs.10,000 and in Which Funds? - Groww (2024)

FAQs

What happens if I invest $10,000 in SIP for 10 years? ›

It has given 25.96 % annualised returns in ten years. The calculator shows that a monthly SIP of ₹10,000 in this fund could have grown to approx. ₹57,53,702 in ten years. The mutual fund calculator shows how a lumpsum investment of 1 lakh grew more than five times in ten years.

How much will I get if I invest $10,000 in mutual funds? ›

For example, If you invest Rs 10,000 per month for 5 years at 12%, you will receive Rs 8.11 lakh on maturity.

How much mutual fund returns in 10 years? ›

Highest Return Mutual Funds in Last 10 Years
Fund Name5 Years Return10 Years Return
HSBC Small Cap Fund Fund (G)27.1%22.3%
Quant Flexi Cap Fund (G)32.2%22.2%
Motilal Oswal Midcap fund (G)28.3%21.9%
Quant Infrastructure Fund (G)36.9%21.7%
16 more rows

How much to invest to get 10 crore in 10 years? ›

How to accumulate a Rs 10 crore corpus in 10 years? Assuming an expected return rate of 12 per cent per year, an investor would need to invest Rs 4.34 lakh per month in equity funds through SIP to create a corpus of over Rs 10 crore in 10 years.

How to make 1 crore from SIP in 10 years? ›

It is also possible to accumulate one crore in ten years by saving and investing INR 40,000-45000 per month in an aggressive portfolio. If the SIP amount is increased by 5% annually and the interest rate increases by 12%, it would yield ₹1 crore taking ten years and six months to implement and benefit from this method.

How much to invest to make $1,000,000 in 10 years? ›

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

Which SIP is best for 10 years? ›

Top SIP Plans of 5,000 Per Month for 10 Years
Mutual FundRisk InvolvedReturns (%)
ICICI Prudential Technology FundVery High28.08
Quant Active FundVery High33.67
Aditya Birla Sun Life Corporate Bond FundModerate8.19
Quant Large And Mid Cap FundVery High20.57
6 more rows
Feb 20, 2024

What is the SIP of 20k for 10 years? ›

Given that performance, if one would started investing Rs 20,000 monthly through SIP in this fund 10 years ago, they would have got Rs 1.01 crore with capital gains of Rs 77.18 lakh. The expense ratio of the scheme is 0.77 per cent against the category average of 0.62 per cent.

What if I invest $5,000 in SIP for 10 years? ›

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

Which is the best investment for 10 years? ›

  • Real Estate. Real estate is one of the most popular long-term investment option that requires acquiring, owning, renting, managing, or selling assets to experience profit over time. ...
  • Bonds. ...
  • Gold. ...
  • ULIPs. ...
  • Equity Funds. ...
  • Fixed Deposits. ...
  • National Pension Scheme (NPS)
May 7, 2024

What is a good 10 year return on investment? ›

5-year, 10-year, 20-year and 30-year S&P 500 returns
Period (start-of-year to end-of-2023)Average annual S&P 500 return
5 years (2019-2023)15.36%
10 years (2014-2023)11.02%
15 years (2009-2023)12.63%
20 years (2004-2023)9.00%
2 more rows
May 3, 2024

Do investments double in 10 years? ›

The Rule of 72 is focused on compounding interest that compounds annually. For simple interest, you'd simply divide 1 by the interest rate expressed as a decimal. If you had $100 with a 10 percent simple interest rate with no compounding, you'd divide 1 by 0.1, yielding a doubling rate of 10 years.

How do you calculate return on investment for 10 years? ›

You may calculate the return on investment using the formula: ROI = Net Profit / Cost of the investment * 100 If you are an investor, the ROI shows you the profitability of your investments. If you invest your money in mutual funds, the return on investment shows you the gain from your mutual fund schemes.

What is the value of 1 cr after 10 years? ›

The value of 1 Crore, after: - 10 years from now= 50Lakhs. - 15 years from now= 36Lakhs. - 20 years from now= 25Lakhs.

Is 10 years a long term investment? ›

Depending on the investor's requirements, long-term investment can range from as short as 12 months to as long as 30 years. For most investors, the holding period for long-term assets ranges from at least 5 to 10 years.

What happens if I invest $15,000 a month in SIP for 15 years? ›

If you invest in SIP by adopting the formula of 15X15X15, then at the rate of Rs 15,000 per month, you will invest a total of Rs 27,00,000 in 15 years. But if you get the interest on it at the rate of 15 per cent, then it will translate into Rs 74,52,946.

What happens if I invest $20,000 a month in SIP for 10 years? ›

Given that performance, if one would started investing Rs 20,000 monthly through SIP in this fund 10 years ago, they would have got Rs 1.01 crore with capital gains of Rs 77.18 lakh. The expense ratio of the scheme is 0.77 per cent against the category average of 0.62 per cent.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Zonia Mosciski DO

Last Updated:

Views: 5407

Rating: 4 / 5 (51 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Zonia Mosciski DO

Birthday: 1996-05-16

Address: Suite 228 919 Deana Ford, Lake Meridithberg, NE 60017-4257

Phone: +2613987384138

Job: Chief Retail Officer

Hobby: Tai chi, Dowsing, Poi, Letterboxing, Watching movies, Video gaming, Singing

Introduction: My name is Zonia Mosciski DO, I am a enchanting, joyous, lovely, successful, hilarious, tender, outstanding person who loves writing and wants to share my knowledge and understanding with you.