₹26,000 Monthly SIP in Nifty 50 Index Fund: How Big Can Your Corpus Grow?

The Nifty 50 Index is a diversified benchmark that tracks 50 leading companies from various sectors of the Indian economy. 

The index is widely used for multiple financial purposes. Investors and fund managers use the Nifty 50 to benchmark the performance of mutual funds and portfolios. It also serves as the foundation for creating index funds, exchange-traded funds (ETFs), and structured financial products. The index consists of 50 stocks, is calculated in real-time, and undergoes semi-annual rebalancing to ensure it reflects current market conditions accurately.

SIP Investment Growth Projection

Assuming monthly investments of ₹26,000, the expected corpus after different periods can be calculated using these average growth rates.

Calculations assume end-of-month investments and compounding annually.

Why Choose an Nifty 50 Index Fund for SIP?

• Diversification: Exposure to 50 top companies reduces stock-specific risk.
• Cost-Effective: Index funds typically have lower expense ratios.
• Consistent Performance: Historically exhibits steady growth as seen in the CAGR figures.
• Discrete Market Timing Risks: SIPs average the purchase cost, reducing impact of market volatility.

About Angel One Nifty 50 Index Fund

The Angel One Nifty 50 Index Fund is one of the many index funds available in India that track the performance of the Nifty 50 Index.

This fund is passively managed, meaning it doesn’t try to outperform the market but instead aims to match the returns of the Nifty 50 Total Returns Index (TRI). To do this, the fund invests in the same 50 companies that make up the Nifty 50 Index and in the same proportion as they are represented in the index.

Around 95% of the fund’s total assets are invested in these Nifty 50 companies, while the remaining amount may be placed in money market instruments to handle liquidity needs and cover expenses.

The main goal of the scheme is to replicate the performance of the Nifty 50 Index and deliver returns that are close to the index, before expenses and tracking errors. However, like all investments, there is no guarantee that the fund will exactly achieve this objective.

It is an open-ended scheme, which means investors can buy or sell units of the fund at any time, and it continuously tracks the Nifty 50 Index.

Also Read, Can SIPs Help You Save ₹25 Lakh in 10 Yrs for Your Child’s Education?

Conclusion

Investing ₹26,000 monthly via an SIP in a Nifty 50 index fund can build significant wealth over time. The fund’s long-term CAGR of 12.1% shows strong potential for sustained growth, balancing risk and return effectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.