A Monthly SIP Of Rs 11,000 In This Bluechip Fund For 17 Years Would Have Made You A Crorepati

Wealth accumulation in the long term needs consistent investment and prudent financial planning. It’s a dream for many to build a corpus of Rs 1 crore. Regular investments through a Systematic Investment Plan (SIP) can yield significant wealth if held over a long period. Equity mutual funds or equity-linked mutual fund schemes are known for giving substantial returns over the years, though they carry higher risk.

If you are open to exploring a high-risk, high-reward investment roadmap, accumulating Rs 1 crore through mutual fund SIPs won’t be a difficult task. Several mutual fund schemes have given attractive returns to investors in the long term due to the power of compounding. For instance, the ICICI Prudential Bluechip Fund Direct Growth plan has given an annualised return of 14.98% since its inception in May 2008. 

With substantial returns since its inception, an investment of Rs 11,000 per month in the scheme through SIP would have surpassed Rs 1 crore today.  

Let’s take a look at how the monthly SIP would have grown over the years:

As per the ICICI Prudential AMC official website, the ICICI Prudential Bluechip fund has given an annualised return of 14.98% so far in nearly 17 years, since its inception.

Let’s see how an investment of Rs 11,000 per month would have grown today:

Total Investment: Rs 22.44 lakh

Duration: 17 years

Interest Rate: 14.98%

Total Returns: Rs 80.73 lakh

Total Corpus fund: Rs 1.03 crore

As per the official scheme document, the plan has given the following annualised returns on SIP investments:

1 year: 9%

3 year: 18.28%

5 years: 24.07%

Since Inception (17 years): 14.98%

Based on the above returns, a monthly SIP of Rs 11,000 in the scheme would have turned into Rs 13 lakh in five years, Rs 2.41 lakh in three years and Rs 63,000 in one year.

The fund was launched with an aim to provide long-term capital for investors from a portfolio primarily comprising equity and equity-related securities of large-cap companies, also known as Indian bluchips.  

Currently, the fund’s Assets Under Management (AUM) stand at Rs 68,033.75 crore. The net asset value (NAV) is Rs 109.26 per unit. Its portfolio includes companies such as HDFC Bank, ICICI Bank, Reliance Industries, Larsen & Toubro, Bharti Airtel, Infosys and Sun Pharma, among others.

While historical returns of the fund are impressive, investors need to remember that past performance does not guarantee future results. Market conditions, economic changes and global factors can influence fund performance in the future.

That said, disciplined investing through SIPs remains a strong strategy for long-term wealth creation.