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By investing Rs 10,000 monthly for 31 years, an investor saw his Rs 37.2 lakh investment grow into Rs 13.64 crore
Rs 10,000 monthly SIP yields 13.64 crore in 31 years.
Investing through a Systematic Investment Plan (SIP) in mutual fund equity schemes can yield impressive results over time, transforming small, regular investments into substantial wealth. A prime example of this is the Franklin India Bluechip Fund, which turned an investment of Rs 10,000 per month into an astounding Rs 13.64 crore in just 31 years. This success story highlights the power of long-term investments and compounding returns.
By committing Rs 10,000 each month for over three decades, an investor has seen their total investment of Rs 37.2 lakh grow into a fortune of Rs 13.64 crore, representing an annual return of 18.5%. This performance underscores the potential of disciplined investing in mutual funds over a long period, which is often the key to building significant wealth. Data from Value Research reveals these remarkable results, showing how strategic, patient investments in equity funds can yield extraordinary outcomes.
What Is Franklin India Bluechip Fund?
As one of the oldest large-cap equity mutual fund schemes, the Franklin India Bluechip Fund has a well-established track record of success. The fund primarily focuses on investing in blue-chip companies, with around 80% of its portfolio dedicated to large-cap stocks. As of December 5, 2024, the fund’s Net Asset Value (NAV) stands at Rs 1,016.58, and its Assets Under Management (AUM) total Rs 7,789 crore. However, it’s important to note that this fund falls into the ‘Very High’ risk category according to its Riskometer, with an expense ratio of 1.84%.
Focus on Top Bluechip Companies
The fund is heavily invested in equity, with 97% of its assets allocated to stocks. The remaining 2.95% is in cash and cash equivalents. Franklin India Bluechip Fund is known for its investments in some of the most prominent and stable companies, including ICICI Bank, Axis Bank, HDFC Bank, Reliance Industries, and Mahindra & Mahindra. This focus on well-established, large-cap companies is a key factor contributing to the fund’s strong long-term performance.
The fund has delivered impressive returns over different time periods. In the last year alone, it generated a return of 25.66%. Its 3-year return stands at 13.07%, while its 5-year return is 16.45%. Over 7 years, the return has been 12.45%, and over 10 years, it has offered a steady 11.35%. These results show how long-term investments in large-cap funds can provide solid returns for patient investors.
How to Invest in Franklin India Bluechip Fund
Interested investors can begin investing in the Franklin India Bluechip Fund by visiting the Franklin Templeton Mutual Fund website. Whether you’re a seasoned investor or new to the world of mutual funds, the SIP option allows you to invest systematically and build wealth over time.
Other Funds Also Offer Wealth-Building Opportunities
There are numerous other equity mutual funds that have created wealth for long-term investors. Through regular SIPs in these funds, many individuals have built substantial wealth. However, it is always recommended to consult a financial expert before making any investment decision to ensure you’re making the right choice based on your financial situation.
While the past performance of a fund can be an indicator of its potential, experts advise against making investment decisions based solely on this. A fund’s historical returns do not guarantee future results. It’s crucial to assess your personal financial goals, risk tolerance, and investment horizon before committing funds. Financial advisors can provide valuable insights and help tailor your investment strategy to suit your individual needs.
