What is an equity based index fund? My friend told me that if I invest in these kind of funds for 15-20 years then I can expect a compounded annual growth return of more than 12-15 per cent. Is this true? If yes, which equity based Index Funds in India shall I invest my money? What is the ideal SIP amount I must invest every month for 15 years to get Rs 15 crore by 2039-2040?

Ans: An equity-based index fund is a type of mutual fund or exchange-traded fund (ETF) that invests primarily in stocks that make up a specific stock index, such as the S&P 500 or the BSE Sensex in India. These funds aim to replicate the performance of the underlying index by holding a diversified portfolio of stocks in proportions similar to the index.

As for the expected return of more than 12% compounded annually over 15-20 years, it's crucial to note that while historical performance can provide insights, it doesn't guarantee future returns. Equity investments are subject to market risks, and returns can vary based on market conditions, economic factors, and other variables. While it's not impossible to achieve such returns, it's essential to consider the associated risks and uncertainties.

Choosing the right equity-based index funds in India depends on various factors such as your risk tolerance, investment goals, and time horizon. Some popular index funds in India include:

• HDFC Index Fund - Nifty 50 Plan
• UTI Nifty Index Fund
• ICICI Prudential Nifty Index Fund
• SBI Nifty Index Fund
• Reliance ETF Nifty BeES (an ETF tracking the Nifty 50 index)

It's advisable to conduct thorough research or consult a financial advisor before selecting specific funds.

To calculate the ideal SIP (Systematic Investment Plan) amount to reach a target corpus of Rs 15 crore by 2039-2040, you would need to consider factors such as the expected rate of return, the investment tenure, and the frequency of investments. Assuming a 12% annual compounded growth rate, you can use a SIP calculator available on various financial websites or consult a financial advisor to determine the required monthly investment amount.

Keep in mind that the actual amount required may vary based on market performance and other factors. Additionally, it's crucial to regularly review and adjust your investment plan based on changing circumstances and goals.