Compounding: How SIP Can Help You Build a 1 Crore
SIP or Systematic Investment Plan is a method of investing in mutual funds, where you can invest a fixed amount at regular intervals, such as monthly or quarterly. SIP helps you to build a habit of saving and investing, and also benefits from the power of compounding and rupee cost averaging.
CAGR or Compound Annual Growth Rate is a measure of the annualized return of an investment over a period of time. It shows how much your investment has grown or shrunk on an average basis each year. CAGR is calculated as:
CAGR=(Beginning Value/Ending Value)^(1/Number of Years) − 1
Based on the web search results, here are the top 10 SIP plans for 3 years in India to invest in 2024, ranked by their CAGR for the last 3 years:
| Mutual Fund | Category | CAGR (3 Years) | NAV | AUM |
|---|---|---|---|---|
| Quant Active Fund | Multi Cap | 34.38% | ₹54.11 | ₹7,413 Crs |
| HDFC Top 100 Fund | Large Cap | 31.86% | ₹609.61 | ₹23,233 Crs |
| SBI Bluechip Fund | Large Cap | 31.09% | ₹57.32 | ₹32,492 Crs |
| Kotak Bluechip Fund | Large Cap | 30.84% | ₹345.88 | ₹7,334 Crs |
| Tata Large Cap Fund | Large Cap | 30.20% | ₹304.36 | ₹1,486 Crs |
| Edelweiss Large Cap Fund | Large Cap | 29.75% | ₹46.66 | ₹686 Crs |
| Mirae Asset Large Cap Fund | Large Cap | 29.42% | ₹73.33 | ₹52,007 Crs |
| PGIM India Flexi Cap Fund | Flexi Cap | 21.46% | ₹37.17 | ₹6,092 Crs |
| Canara Robeco Emerging Equities Fund | Large & Mid Cap | 21.11% | ₹191.14 | ₹19,904 Crs |
| DSP Flexi Cap Fund | Flexi Cap | 20.98% | ₹91.62 | ₹10,067 Crs |
