Long Term SIP Return : There are some schemes in the mutual fund market that have proved to be return machines since their launch. Their annualized return has been 15 to 18 percent for a long time. One of these schemes is ICICI Prudential Multicap Fund. This scheme, which invests in multicap category i.e. shares of all types of market caps, has proved to be a return machine for investors. It has given about 18 percent annualized return to those doing SIP in the last 29 years. Those doing monthly SIP of just Rs 1500 have now become owners of Rs 2 crore.
SIP : 18% Annualized Return
ICICI Prudential Multicap Fund’s SIP return data is available for the last 29 years. This scheme has given about 18 percent annualized return to SIP investors in the last 29 years. If someone had done SIP of Rs 1500 every month in this scheme 29 years ago, which can be done by saving Rs 50 daily, then the value of his investment would have increased to Rs 2.23 crore now. Now with an upfront investment of Rs 50 thousand, the total investment is only Rs 5.72 lakh.
Monthly SIP: Rs 1500
Duration: 29 years
Annualized return: 17.80%
Upfront investment: Rs 50,000
Total investment in 29 years: Rs 5,72,000
SIP calculation after 29 years: Rs 1.90 crore
Total profit: Around Rs 1.84 crore
Details about the scheme
Scheme Launch Date : October 1, 1994
Minimum lump sum investment: Rs 5,000
Minimum SIP: Rs 100 per month
Benchmark : Nifty 500 Multicap 50:25:25 TRI
Total Assets: Rs 13,025 crore (June 30, 2024)
Expense Ratio: 1.76% (June 30, 2024)
(source: value research)
Top stocks in portfolios
ICICI Bank
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Infosys
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HDFC Bank
Larsen & Toubro
Cummins India
Syngene International
Airtel
NTPC
About Multicap Mutual Funds
Multi-cap mutual funds are diversified equity funds that invest your money in shares of companies with different market capitalizations. That is, investors’ money is invested in shares of large-cap, mid-cap and small-cap companies under these funds.
According to SEBI rules, it is mandatory to invest 75% of the fund in equity in this category. However, mutual funds can rebalance the multicap fund. They also have the option to switch to another scheme from time to time.
Advantage of investing in multicap
The advantage of this is that if investors are confused about where to invest their money large-cap, mid-cap, small-cap, then the multi-cap category not only removes this dilemma, but your portfolio gets automatically diversified in it. The second advantage is that large-cap funds give stability to your portfolio, while you can get high returns in mid-cap and small-cap. On the other hand, if the performance of any one segment such as mid-cap or small-cap is poor, then large-cap can balance it. Similarly, mid-cap or small-cap can recover the loss in large-cap. Overall, these funds protect against losses in difficult times.
(Note: We have given information here based on the performance of a mutual fund scheme. This is not an investment advice. There are risks in the market, so consult a financial advisor before investing.)
