Crorepati dream: 12 mutual funds deliver over 100x return in 2-3 decades
equity mutual funds have given mind-boggling returns of over 100 times when held since inception. A lumpsum investment of Rs 1 lakh (which wasn't a small amount in those days) would have turned you into a crorepati in 2-3 decades, an analysis by ETMutualFunds showed.
HDFC ELSS Tax saver, the topper in the list, offered 23.71% since its inception. A lumpsum investment of Rs 1 lakh in the scheme would have now been Rs 3.79 crore. The scheme has completed 27.93 years of existence in the market.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-108031049»>Nippon India Growth Fund offered 22.64% making a lumpsum investment of Rs 1 lakh to Rs 3.28 crore in around 28 years.
The next two schemes were from Franklin Templeton Mutual Fund. Franklin India Prima Fund and Franklin India Bluechip Fund offered 19.51% and 19.35% respectively on lumpsum investments since their inception. The lumpsum investment would have now grown to Rs 2.19 crore and Rs 2.10 crore respectively.
The question is how does the power of compounding work well in the longer term? “Compounding is indeed a magical phenomenon in the world of investing, capable of turning even modest savings into substantial wealth over time. However, its true power reveals itself only to those who possess the patience and discipline to stay invested for the long term,” said Sagar Shinde, VP Research, Fisdom.
Example:
Source: ACE MF, Fisdom Research.
*We have considered HDFC Top 100 fund regular plan growth for illustration
