The average rate of return on SIPs is the return the investor earns over a specific period of time. SIPs or Systematic Investment Plans offer a convenient way of investing in mutual funds with monthly contributions to build a sizable wealth corpus over time. The average expected rate of return in SIPs vary depending on the fund in question. On average, large-cap equities offer a return of around 12%-18%, while mid-cap funds offer returns of 14%-17%. Alternatively, long-term debt funds can offer returns of 6%-9%. That’s why understanding the average return on SIP is crucial for investors seeking to maximise their earnings. This article debunks what is the average return on SIPs, factors affecting returns, and strategies on how to maximise SIP returns.
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