₹11K monthly SIP since the launch of this blue chip mutual fund would have grown to ₹1 crore. Check how
ICICI Prudential Bluechip Fund has delivered an annualised return of 14.98 percent since the launch of this scheme
If you continue to invest in one mutual fund scheme in small doses, it can – and often does – grow to a large corpus over a period of time. This multiplier effect is referred to as ‘compounding’ in the investing parlance.
This means growth of investment in the first few years gets added to the principal amount. And the return on initial investment in the later years gets added to it, thus accelerating the pace of return. The effect of compounding is so potent that — it is metaphorically also referred to as ‘magic’.
Here, we handpick one mutual fund and monitor its return since its inception and estimate the overall growth of the corpus if someone had been investing since the launch of the scheme.
If someone were investing ₹11,000 for the past three years, the investment would have grown to ₹5.46 lakh by investing only ₹3,96,000.
In five years time, the investment would have swelled to ₹11.10 lakh by investing ₹6,60,000 only. And if someone were consistently investing ₹11,000 since the launch of the scheme, the corpus would have grown to ₹one crore by growing at an annualised rate of 14.98 percent.
| Tenure | Corpus (Rs) | Annualised return (%) |
|---|---|---|
| 1 year | 1.50 lakh | 9 |
| 3 years | 5.46 lakh | 18.28 |
| 5 years | 11.10 lakh | 24.07 |
| Inception | 1 crore | 14.98 |
(Source: icicipruamc.com)
More about the scheme
ICICI Prudential Bluechip fund was launched on May 23, 2008. Its total asset size is ₹68,033 crore, reveals icicipruamc.com.
Its key constituent stocks include HDFC Bank, ICICI Bank, RIL, L&T, Bharti Airtel, Maruti Suzuki, Axis Bank, Ultratech Cement, Infosys, Sun Pharma, NTPC and Hero Motocorp. The scheme is managed by Anish Tawakley and Vaibhav Dusad.
Meanwhile, it is vital to note that the past returns do not guarantee future returns. In other words, just because a scheme has given good returns in the past – it does not mean that it will continue to grow at the same pace in future as well.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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