What is 5 year return in mutual fund? (2024)

What is 5 year return in mutual fund?

Assume a $10,000 investment grows to $12,000 over a five year period. To calculate the total return over the period, divide the ending value by the beginning value and then subtract one. [ (12,000/10,000) – 1 = 0.20 = 20% ] It might seem like a 20% return over five years would equate to a 4% annual return.

How much return can I expect from mutual funds in 5 years?

Returns from Short Term Debt Funds - Low Risk
Scheme Name1 Year5 Years
Aditya Birla SL Short Term Fund (G)7.00%7.84%
UTI Banking & PSU Debt Fund - Reg (G)6.00%5.79%
HDFC Short Term Opportunities Fund (G)7.07%7.54%
Axis Banking & PSU Debt Fund (G)6.27%7.42%

How is 5 year return calculated?

Assume a $10,000 investment grows to $12,000 over a five year period. To calculate the total return over the period, divide the ending value by the beginning value and then subtract one. [ (12,000/10,000) – 1 = 0.20 = 20% ] It might seem like a 20% return over five years would equate to a 4% annual return.

Which mutual fund gives highest return in 5 years?

PSU cap funds have offered an average return of 27.02% in five years. CPSE ETF, the topper in the category, gave more than 27.61%. Invesco India PSU Equity Fund gave 27.49%. SBI PSU Fund gave 25.49% during the same time period.

What if I invest 20000 a month in mutual funds for 5 years?

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.

What if I invest $1,000 in mutual funds for 10 years?

(You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.

What if I invest $1,000 a month in mutual funds for 20 years?

If you were to stay invested for a shorter duration, say 20 years, you'd invest Rs 2,40,000, but your portfolio value would be Rs 9.89 lakh. A decade-long investment of Rs 1,000 per month would equal Rs. 2,30,038, as compared to Rs. 1,20,000 invested over the same period.

What is a good return in 5 years?

Best SIP Plans for 5 Years Investment 2024
Fund Name5 YearsRSI
Large and Mid Cap Fund QUANT23.27%19.64%
Flexi Cap Fund PARAG PARIKH23.90%20.15%
Large and Mid Cap Fund EDELWEISS20.32%16.76%
7 more rows

Is 7% annual return realistic?

A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.

What is a good return over 5 years?

The average annual return for the S&P 500, when adjusted for inflation, over the past five, 10 and 20 years is usually somewhere between 7.0% and 10.5%. This means that if your portfolio is returning better than 10.5%, you have a good ROI.

How much can a mutual fund make in 10 years?

Average Mutual Fund Returns
Category2021 Return10-Year
U.S. Large-Cap Stock26.07%14.96%
U.S. Mid-Cap Stock23.40%13.12%
U.S. Small-Cap Stock24.19%12.74%
5 more rows
Jan 22, 2022

What is very high risk in mutual fund?

High-risk mutual funds are those that invest in stocks or equity that have a higher risk of losing value. These funds are also known as equity funds or growth funds. They are designed for investors who are willing to take on more risk in exchange for the potential of higher returns.

Is mutual fund safe for long term?

In the category of market-linked securities, mutual funds are a relatively safe investment. There are risks involved but those can be ascertained by conducting proper due diligence.

How much will $20 000 be worth in 10 years?

The table below shows the present value (PV) of $20,000 in 10 years for interest rates from 2% to 30%. As you will see, the future value of $20,000 over 10 years can range from $24,379.89 to $275,716.98.

How much money do I need to invest to make $3000 a month?

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

What if I invest 3 000 a month in SIP for 5 years?

What if I invest Rs. 3,000 a month in SIP for 5 years? If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.

How much should I invest a month to become a millionaire in 10 years?

Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.

How much is $500 a month invested for 10 years?

Here's how a $500 monthly investment could turn into $1 million
Years InvestedBalance At the End of the Period
Dec 17, 2023

How long should you keep money in a mutual fund?

Typically, the ideal holding period for an equity mutual fund is considered anywhere between a minimum of 3-5 years. But data shows that only investments in 3% of the units continued for more than 5 years.

How much do I need to invest a month to be a millionaire in 5 years?

Saving a million dollars in five years requires an aggressive savings plan. Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate.

What if I invested $1000 in S&P 500 10 years ago?

According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.

How long will it take for an $1000 investment to double in size when invested at the rate of 8% per year?

The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

Can I double my money in 5 years?

Money experts say that if one remains invested in a disciplined way, in the long run, mutual funds can give around 12-15% returns.So, an investment of ₹1 lakh in MFs will double ( ₹2 lakh) in six years assuming a 12% interest rate.

What is the safest investment with the highest return?

Safe investments with high returns: 9 strategies to boost your...
  • High-yield savings accounts.
  • Certificates of deposit (CDs) and share certificates.
  • Money market accounts.
  • Treasury securities.
  • Series I bonds.
  • Municipal bonds.
  • Corporate bonds.
  • Money market funds.
Dec 4, 2023

Which is the best portfolio for 5 years?

Hybrid mutual funds are the type of funds that invest in both equity and debt funds. However, the equity and debt component of a hybrid mutual fund varies from fund to fund. These funds are one of the best investment plans for 5 years as they provide both regular income and the potential to earn higher returns.


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