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Business News/ Money / Personal Finance/  An SIP of 10,000 in this mutual fund would have grown to 2.1 crore in 21 years
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An SIP of ₹10,000 in this mutual fund would have grown to ₹2.1 crore in 21 years

ICICI Prudential Multi Asset Fund has delivered a 17.5 percent return on SIPs in the past 21 years. If someone were investing regularly at the rate of ₹10,000 every month, the investment would have grown to ₹2.1 crore by investing only ₹25.2 lakh

The scheme was launched on October 31, 2002 Premium
The scheme was launched on October 31, 2002

Prior to investing in a mutual fund scheme, investors are expected to weigh a number of pros and cons, and rightly so! They tend to consider a number of factors such as the category of scheme, reputation of the fund house, macro-economic condition, and the scheme’s historical returns, among other factors.

Here, we give a lowdown on the ICICI Prudential Multi Asset Fund, which has completed 21 years of its existence. The scheme has an AUM of 24,060 crore that accounts for nearly 57 percent of the total AUM in the multi asset allocation category.

Historical returns

A lumpsum investment of one lakh in the scheme at the time of inception (October 31, 2002) would have grown to 54.9 lakh as on Sept 30 at a CAGR of 21 percent.

On the other hand, a similar investment in the scheme’s benchmark would have yielded approximately 25.7 lakh i.e., CAGR of 16 percent.

Tenor         CAGR (%) Current Value of 1 lakh investment (Rs)
1                              22.711.22 lakh
3                                29.182.15 lakh
5                     16.462.14 lakh
SI                        21.1054.91 lakh

(Source: Value Research; Returns as on Sept 30, 2023)

In terms of the SIP (systematic investment plan) performance, a monthly investment of 10,000 via SIP since the inception would have grown to 2.1 crore by making an investment of 25.2 lakh i.e., a CAGR of 17.5 percent.

Tenor                Investment (Rs)Market Value (Rs)
1 year                        1.2 lakh 1.34 lakh
3-years                  3.6 lakh4.94 lakh
5-years                   6 lakh10 lakh
7-years                        8.4 lakh15.6 lakh
10 years             12 lakh27.36 lakh
15 years          18 lakh64.58 lakh
SI                              25.2 lakh2.1 crore

As we can see from the table above, a monthly SIP of 10,000 in this scheme would have grown to 1.34 lakh in one year. In three years, the investment would have grown to 4.94 lakh by making an investment of 3.6 lakh in 36 months.

Likewise, if the SIPs continued for 10 years, the total investment would have grown to 27.36 lakh by making a total contribution of 12 lakh. In 15 years, the investment would have risen to 64.58 lakh.

In the past 21 years i.e., since the fund's inception, the total investment would have grown to 2.1 crore by making an investment of 25.2 lakh.

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Published: 05 Nov 2023, 11:56 AM IST
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