Monthly SIP of ₹10,000 in This Mutual Fund Grew to ₹1.12 Crore Over 19 Years: Check How
If you are investing in mutual funds, the returns can be significantly higher if you remain consistent.
For a three-year investment period, the same monthly investment would have grown to ₹5.13 lakh from a total investment of ₹3.6 lakh, yielding a return of 24.45%.
Are you new to investing? Then it's important to remember that compounding is key to building wealth in the long run.
If you are investing in mutual funds, the returns can be significantly higher if you remain consistent.
In this context, let’s take a closer look at the potential returns from a specific mutual fund scheme—Sundaram Focused Fund—since its launch in November 2005, particularly through systematic investment plans (SIPs).
If you had invested ₹10,000 every month in the Sundaram Focused Fund over the past year, your total investment of ₹1.20 lakh would have grown to ₹1.44 lakh, resulting in a return of 40.50%.
For a three-year investment period, the same monthly investment would have grown to ₹5.13 lakh from a total investment of ₹3.6 lakh, yielding a return of 24.45%.
Over five years, a total investment of ₹6 lakh would have produced ₹10.71 lakh, equating to an annualized return of 23.38%.
Furthermore, if you had consistently invested ₹10,000 every month in this mutual fund since its inception, your total investment would have reached ₹1.1198 crore, providing a compounded return of 15.14% over nearly 19 years.
The Sundaram Focused Fund is a focused mutual fund launched on November 11, 2005, managed by Bharath S and Sudhir Kedia.
The fund has invested in various sectors such as banks (21.3%), retail (11.2%), electrical equipment (8.1%), pharmaceuticals (7.4%), telecommunications (7.2%), IT (7.1%), petroleum (6.3%), aerospace (5.2%), construction (4.9%), and finance (4.6%).
It's important for investors to understand that these numbers come from past performance, and just because something did well before doesn't mean it will do well in the future. So investment-related decisions must be taken solely based on past performances.
Investment decisions should not rely solely on previous returns.
Note: This information is for educational purposes only. Investors must consult a SEBI-registered investment advisor before making any investment decisions.
