A monthly SIP of ₹10K in this mutual fund since 2008 would have grown to ₹90 lakh
Quant Focused Mutual Fund has given an annualised return of 18 percent, which means if someone had regularly invested ₹10,000 in this fund since the launch of this scheme in 2008, it would have grown to ₹90 lakh
Investing a small sum on a regular basis in a mutual fund scheme can reap great dividends to investors. So they do! As they say ‘the proof of the pudding is in the eating’, here we demonstrate how a monthly SIP into a mutual fund can grow multi-fold over a long period of time.
We have randomly selected one mutual fund scheme — Quant Focused mutual fund which has delivered a reasonably good return of 18 percent since its launch in August 2008 i.e., 15 years and 8 months ago.
At the outset, let us first elaborate what a focused mutual fund is.
What is a focused mutual fund?
These mutual funds are focused on the number of stocks (maximum being 30) with at least 65 percent in equity and equity-related instruments, as per the SEBI’s categorisation of mutual fund schemes.
As we can see in the table below, the scheme has delivered 54 percent return in the past one year. This means if someone had invested ₹10,000 a month (i.e. 1,20,000 in a year), the investment would have grown to ₹1.52 lakh.
In a three-year-period, the regular investment via systematic investment plan of ₹10,000 would have grown to ₹5.26 lakh by investing a total of ₹3.6 lakh.
| Year | Return (%) | Investment (Rs) | Market Value (Rs) |
| 1 year | 54.69 | 1,20,000 | 1.52 lakh |
| 3 years | 26.51 | 3,60,000 | 5.26 lakh |
| 5 years | 26.58 | 6,00,000 | 11.53 lakh |
| 7 years | 21.43 | 8,40,000 | 17.99 lakh |
| Since inception | 18 | 18,80,000 | 90 lakh |
(Source: http://www.quantmutual.com)
Likewise, a regular investment of ₹10,000 a month for a five-year period would have grown to ₹11.53 lakh by investing only ₹6 lakh.
The same pattern of investment could have swelled to ₹17.99 lakh in a span of seven years by making an investment of ₹8.4 lakh.
And finally, if the SIP had continued since the launch of the scheme in 2008, the investment would have grown to a whopping ₹90 lakh by growing at an annualised rate of 18 percent. In this case, the total investment made is only ₹18.8 lakh.
More about Quant Focused Mutual Fund
This focused mutual fund was launched on August 28, 2008. Its benchmark is Nifty 500 TRI.
The top constituent stocks of this mutual fund are Jio Financial Services, RIL, Britannia, LIC, Adani Green Energy, GAIL, Adani Power, TCS, Hindalco Industries and Tata Power.
Notably, the article carries the historical returns of this scheme and the past returns do not guarantee the future returns, which are driven by a host of unrelated factors such as macro-economic factors, category of scheme, quality of constituent stocks and reputation of fund house and past performance of fund managers (particularly in an active scheme).
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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