DSP BlackRock Equity Fund Completes 20 Years. What If You Had Invested Rs 1,000 A Month?

DSP BlackRock Equity Fund recently completed 20 years of its existence. The fund (dividend option) has delivered 20.65 per cent compound annual growth rate since its inception, outperforming the 13 per cent return of Nifty50 index by a huge margin, says its website. The objective of DSP BlackRock Equity Fund is to seek to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India. DSP BlackRock Equity Fund benchmarks itself against NIFTY 500 index.

If you consider the NIFTY 500, DSP BlackRock Equity Fund has also outperformed this index by a big margin. NIFTY 500 has delivered a return of 14.4 per cent during the past 20 years as compared to the fund's 20.65 per cent return.

What if you had invested Rs 1,000 in the fund each month since its inception? Now you would be sitting on a corpus of nearly Rs 26 lakh as compared to your invested amount of Rs 2.41 lakh crore. If you had invested Rs 4,000 each month, it would have been over a crore now. Returns for investments in dividend plans of schemes are calculated after assuming that the net dividend payouts post statutory taxes & levies, are re-invested back in the scheme. As of March 31, 2017, the fund had assets worth Rs 2,310 crore under management. 

Overall, the country's mutual fund industry managed an asset base of over Rs 18 lakh crore. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.

Inflows into domestic equity mutual funds have helped Sensex and Nifty rise to record levels. According to estimates domestic investors are pouring in Rs 4,000 crore every month into equity mutual funds through systematic investment route. Systematic Investment Plans or SIPs are fixed amounts invested at regular intervals in a financial instrument.