From Rs. 26.10 Lakh to Rs. 2.67 Crore: Discover this Mutual Fund behind This Remarkable Growth!
Investing consistently in a mutual fund can lead to significant returns over time, with gains often accelerating in the later years. This phenomenon, known as compounding, can sometimes seem like financial magic. To illustrate this, let's explore the performance of...
01:04 PM Sep 10, 2024 IST
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Honey sharma
Investing consistently in a mutual fund can lead to significant returns over time, with gains often accelerating in the later years. This phenomenon, known as compounding, can sometimes seem like financial magic. To illustrate this, let's explore the performance of the ICICI Prudential Multi Asset Fund.
Track Record of ICICI Prudential Multi-Asset Fund
Launched on October 31, 2002, the ICICI Prudential Multi Asset Fund has shown impressive growth. If an investor had put Rs. 1 lakh into this fund a year ago, it would have grown to Rs. 1.32 lakh by June 30, 2024. Over three years, the same investment would have risen to Rs. 1.88 lakh, and in five years, it would have reached Rs. 2.48 lakh.
Benefits of Systematic Investment Plans (SIPs)
The real magic of mutual fund investing comes with regular contributions through Systematic Investment Plans (SIPs). For example:
- 1 Year: Investing Rs. 10,000 per month would result in an accumulated value of Rs. 1.39 lakh from a total investment of Rs. 1.2 lakh.
- 3 Years: Monthly investments of Rs. 10,000 would grow to Rs. 5.13 lakh from an investment of Rs. 3.6 lakh.
- 5 Years: Investing Rs. 10,000 per month would accumulate to Rs. 11.12 lakh from Rs. 6 lakh invested.
- 7 Years: The investment would grow to Rs. 17.52 lakh from Rs. 8.4 lakh invested.
Long-Term Investment Returns
Continuing investments over a longer period yield even greater returns:
- 10 Years: A total investment of Rs. 12 lakh would grow to Rs. 30.32 lakh.
- 15 Years: Investing Rs. 18 lakh would result in a value of Rs. 69.37 lakh.
Investment Since Inception
If an investor had been contributing Rs. 10,000 monthly since the fund's inception, the total investment of Rs. 26.10 lakh would have grown to an impressive Rs. 2.67 crore.
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The ICICI Prudential Multi Asset Fund demonstrates the power of compounding and the benefits of regular, disciplined investments. Longer investment periods significantly enhance returns, making SIPs a powerful tool for building wealth over time.
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