Best SIP Investment Scheme: Mr. A (fictitious name) started investing Rs 5000 monthly through Systematic Investment Plan (SIP) relying on a mutual fund scheme started 29 years ago. When he got better returns in the initial months, his confidence in the scheme increased and he continued investing Rs 5000 monthly. Recently, when the news came that the scheme had completed 29 years, he checked his SIP account. He could not believe that his small investment on monthly basis has now reached Rs 13 crore. The name of this scheme is Nippon India Growth Fund.
Nippon India Growth Fund was launched on October 8, 1995. It has recently completed 29 years. In these 29 years, this fund has given returns of 22.86% per annum to lump sum investors and 23.53% per annum to SIP investors. The benchmark for this is NIFTY Midcap 150 TRI. The total AUM of the fund was Rs 34,584 crore as of November 30, 2024. Whereas the expense ratio was 1.59%.
Return in SIP: This scheme increased the money 78 times, got Rs 1 crore from SIP of Rs 1000, retirement became wonderful
What is the investment strategy?
The objective of this scheme is to achieve high returns in the long term by investing in equity and equity related securities through a research based approach. Companies showing above average growth are included in the portfolio of growth funds. These companies reinvest a large part of their profits in company expansion, acquisitions and research and development. These companies can be in leadership positions in their respective sectors or can be among the leaders. Most growth funds are high-risk, high-reward. The risks present in these are covered by long term investment. Financial advisors recommend investing in such funds for at least 5 years or more.
SIP Return: 2000 rupees kept getting deducted from the account every month, suddenly when I checked the account became 1 crore, i.e. money increased at the rate of 21% annually.
SIP performance of the fund
SIP data of Nippon India Growth Fund is available for 29 years. In 29 years, this scheme has given 23.52 percent annualized returns to SIP investors. In this sense, if someone had invested Rs 5000 monthly when the scheme was launched, he would now have accumulated around Rs 13 crore.
Annualized return of SIP in 29 years: 23.52%
Monthly SIP amount: Rs 5000
Total investment in 29 years: Rs 17,40,000
Total value of SIP after 29 years: Rs 13,06,60,687
SIP in SBI: Be it SIP or Lump Sum, this scheme of SBI Mutual Fund is superior to all in 15 years, made 1 lakh 17 lakhs
lump sum fund performance
Nippon India Growth Fund was started on 8 October 1995. In these 29 years, this fund has given returns of 22.86% per annum to lump sum investors. If someone had invested a lump sum of Rs 1 lakh in this fund at the beginning of this fund and waited, then the value of today’s money would have been Rs 4,05,19,520 i.e. around Rs 4 crore.
Annualized return since launch: 22.86%
Value of investment of Rs 1 lakh: Rs 4,05,19,520
1 year return: 36.05%
Value of investment of Rs 1 lakh: Rs 1,36,050
3 year return: 26.66% per annum
Value of investment of Rs 1 lakh: Rs 2,03,180
5 year return: 28.91% per annum
Value of investment of Rs 1 lakh: Rs 3,56,430
This scheme of Nippon India topped its category, increased the money 19 times in 12 years, 28% annualized return on SIP
Fund Portfolio: Top Holdings
Cholamandalam Financial : 2.78%
Power Finance Corporation: 2.68%
Persistent Systems: 2.66%
BSE: 2.49%
Fortis Healthcare: 2.44%
Voltage: 2.43%
The Federal Bank: 2.40%
Max Financial: 1.93%
NTPC: 1.82%
Tube Investment: 1.82%
Fund Portfolio: Top Sector
Auto: 10.47%
Financial: 7.76%
Pharma: 7.59%
Industrial: 6.53%
Bank: 5.78%
Consumer: 5.62%
Retail: 5.27%
Capital Market: 4.42%
Healthcare: 4.40%
Power: 4.33%
(Note: We have given information here based on the performance of a mutual fund scheme. This is not investment advice. There are risks in the market, so consult a financial advisor before investing.)
