SIP strategy: How many years it takes for over 10% returns

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While all mutual fund investors want to multiply their wealth fast, it doesn’t happen quickly or in a very short span of time.

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Mutual fund SIPs take time to show substantial result as the power of compounding always works well in the long term.

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A report by FundsIndia says that investing in equity mutual funds with a time frame of 7+ years has led to a good experience.

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In most instances a 7-year year time-frame increases the odds of returns greater than 10%, the report says.

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However, in rare instances where returns were less than 10%, extending the time frame by 1-2 years helps.

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Data shows that investors should start their SIP with a longer investment horizon for best results.

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Disclaimer: Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.

[{"selector":"#anim-f2a26691-ced2-46b0-a19c-7bf5a4251948 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Next: 3 Bucket Formula to Automate Savings and Investments Next: 3 Bucket Formula to Automate Savings and Investments See Next