A monthly SIP of 10K in this mutual fund since launch would have grown to ₹7.74 crore. Check details

A monthly SIP of 10,000 since the launch of Sundaram ELSS Tax Saver Fund in March 1996 would have swelled to 7.74 crore by investing a total of 33.7 lakh over a period of 28 years and 10 months.

MintGenie Team
First Published31 May 2024, 04:51 PM IST
Sundaram ELSS Tax Saver Fund is an open-ended mutual fund linked to Nifty 500 TRI. The scheme is managed by Sudhir Kedia and Rohit Seksaria
Sundaram ELSS Tax Saver Fund is an open-ended mutual fund linked to Nifty 500 TRI. The scheme is managed by Sudhir Kedia and Rohit Seksaria

A regular investment in a mutual fund via systematic investment plan (SIP) reaps great dividends. This means if you keep investing small sums into a scheme on a regular basis, the total investment can, and does, grow into a substantial amount over a long period of time. 

This significant increase in the investment is also known as ‘magic of compounding’.

Here, we handpick one mutual fund scheme and examine the returns delivered over a period of time. The scheme we are referring to here is ‘Sundaram ELSS Tax Saver Fund’.

ALSO READ | Mutual Funds: Why use your appraisal to step up your SIP investments?

As one can see in the table below, if someone had invested 10,000 consistently for one year, it would have swelled to 1.4 lakh by investing only 1.20 lakh into this ELSS scheme.

Similarly, in three years, an SIP of 10,000 would have grown to 4.85 lakh by investing 3.6 lakh across 36 months in this scheme.

Year                  Investment (Rs) Interest (%)Return (Rs)
1 year                             1.2 lakh34.041.4 lakh
3 years                                        3.6 lakh20.474.85 lakh
5 years                         6 lakh21.6610.27 lakh
Inception                           33.7 lakh18.137.74 crore

(Source: sundarammutual.com)

Likewise, an investment made over 5 years would have grown to 10.27 lakh by investing only 6 lakh in 60 months.

And eventually, a regular SIP of 10,000 since the inception of the scheme in March 1996 would have grown to 7.74 crore by investing a total of 33.7 lakh over a period of 28 years and 10 months.

More about the scheme

Sundaram ELSS Tax Saver Fund is an open-ended mutual fund with a benchmark index of Nifty 500 TRI. The scheme is managed by Sudhir Kedia and Rohit Seksaria.

The fund is overweight on banks, pharmaceuticals and retailing and underweight on power, finance and auto components. Its assets under management (AUM) are 1,276 crore, as on May 30, 2024.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

 

 

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First Published:31 May 2024, 04:51 PM IST
HomeMutual FundsA monthly SIP of 10K in this mutual fund since launch would have grown to ₹7.74 crore. Check details

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