An SIP of 10K in this flexi cap mutual fund would have grown to ₹30 lakh in 10 years. Check how

If you are a mutual fund investor, you must be aware that one of the most feasible and preferred routes of investing is systematic investment plan or SIP. This offers an array of benefits, for obvious reasons. First, it allows the investors to make the most of rupee cost averaging.

Under the rupee cost averaging, investor can average out the cost of acquiring an asset when they buy its units at different prices over a period of time. Second, it inculcates a sense of financial discipline. Third, it allows investors to let their investment grow considerably so long as they stay invested over a period of time.

Here, we randomly handpick one mutual fund scheme (Edelweiss Flexi Cap Fund) and monitor its return since inception to evaluate how much the investment would have grown since its launch if the investor were consistent over a period of time.

For instance, if someone were investing regularly into Edelweiss Flexi Cap each month in form of SIP for just one year, the investment would have grown to ₹1.13 lakh by investing a total of ₹1.20 lakh.

In two years, this investment of ₹10K every month would have spiked to ₹2.65 lakh, whereas the total investment stands at ₹2.40 lakh. In three years, the total return would have reached ₹4.59 lakh whereas the investment stands at ₹3,60,000. In five years, total investment would have grown to ₹9.35 lakh by investing a total of ₹6 lakh.

(Source: edelweissmf.com)

Power of compounding

And if the investor had continued to invest ₹10,000 every month for seven years, the corpus would have grown to ₹15.93 lakh by making an investment of ₹8,40,000.

In 10 years, total corpus would have swelled to ₹28 lakh when the investment stands at ₹12 lakh. Since inception (Feb 3, 2015), if someone were investing ₹10,000 every month into this scheme, the total return would have grown to ₹30.42 lakh.

More about this fund

Top constituent stocks include HDFC Bank, ICICI Bank, RIL, L&T, Infosys, NTPC, Bharti Airtel, Ultratech, Bajaj Finance and Coforage.

This flexi cap mutual fund’s benchmark is Nifty 500 TRI. Market cap allocation between large cap, mid cap and small cap in the fund is 66.70: 25.28: 8.03. The scheme has three fund managers: Trideep Bhattacharya, Ashwani Kumar Agarwalla and Raj Koradia.

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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