Mutual Funds: How a simple ₹10,000 SIP could lead you to ₹2 crore—here’s the secret

If you had invested ₹10,000 monthly in the Canara Robeco Flexicap Fund since its inception, your total investment of ₹25.50 lakh would have remarkably grown to ₹1.79 crore as of August 30, 2024. This impressive performance highlights the power of disciplined investing through a Systematic Investment Plan (SIP).

Inception and strategy

Launched in September 2003, the Canara Robeco Flexicap Fund has spent over two decades delivering substantial capital appreciation. The fund invests across a spectrum of companies, from large-cap to small-cap, employing a blend of bottom-up stock selection and top-down sectoral analysis. This dual approach allows the fund to pinpoint fundamentally strong companies while identifying promising sectors for growth.

Outpacing the competition

Since its inception, the fund has achieved a Compound Annual Growth Rate (CAGR) of 18.31%, surpassing its benchmark, the BSE 500 Total Return Index (TRI), which recorded a CAGR of 17.23%. 

Additionally, when compared to the BSE SENSEX TRI, which posted a CAGR of 17.58%, Canara Robeco Flexicap Fund has proven its ability to generate superior returns.

Performance of lump-sum investments

For those considering a lump-sum investment, an initial outlay of ₹10,000 would have grown to ₹3.39 lakh through this fund. In contrast, investing the same amount in the benchmark index would have yielded ₹2.82 lakh. This further underscores the fund's capability to enhance returns over time.

A diversified portfolio

As of August 30, 2024, the Canara Robeco Flexicap Fund manages assets worth ₹13,510.37 crore and maintains a well-diversified portfolio comprising 67 stocks. Notably, the top 10 holdings makeup 37% of the fund’s net assets, demonstrating a balanced approach to liquidity and long-term growth.

Meet the managers

The fund is aptly managed by Shridatta Bhandwaldar, the Head of Equities, alongside Pranav Gokhale, the Fund Manager. Their expertise and strategic vision are crucial in navigating market cycles while ensuring sustainable returns for investors.

“We are proud that our fund house has recently crossed an AUM of Rs. 1 lakh crore. As a fund house that has always focused on companies with a strong competitive position, we are happy to have a scheme such as our Canara Robeco Flexi cap Fund that has been around for more than two decades with investments in companies that have a high quality of management,” said Rajnish Narula, MD and CEO, Canara Robeco Mutual Fund.