Invesco India multi cap fund was launched on March 17, 2008. In the past 14 years, the fund scheme has a delivered a return at a compound annual growth rate (CAGR) of 18.07 percent. This means if someone had invested ₹1,00,000 in Invesco India multi cap fund at the time of launch, the sum would have grown to over ₹11.27 lakh by now.
But the larger return can be pocketed when investment is made regularly via systematic investment plans (SIPs). When you make a small investment regularly for a long time, the investment can grow to a sizeable sum, and towards the latter part of the fund’s tenor; its growth happens at a faster pace than during the earlier part.
Wealth advisors and investment experts often assert that investors are supposed to invest small amounts regularly in order to accumulate large amount of savings to meet their financial goals via SIPs (systematic investment plans).
About the scheme
The fund scheme was launched in March 2008 as an open-ended equity scheme investing across large cap, mid cap and small cap stocks. Its benchmark index is Nifty500 Multicap 50:25:25 TRI and the fund is managed by Pranav Gokhale and Amit Nigam.
The fund scheme has a portfolio of 58 stocks out of which, there are 20 large cap, 17 mid cap and 21 small cap stocks. Its key constituent stocks, as on June 30, are RIL, ICICI Bank, Infosys, Axis Bank, Cholamandalam Investment, SBI, Timken India, Bharat Electronics, Balkrishna Industries and Sundaram Fasteners.
As we can see in the table below, a regular investment of ₹10,000 would have grown to ₹4,83,750 in a span of three years. In a five-year period, this amount would have swelled to ₹7,81,463.
And if the investment were done for a period of 10 years, it would have grown to ₹31.78 lakh. And finally, since inception, the regular investment of ₹10,000 would have grown to ₹85.43 lakh.
Years | CAGR (%) | Corpus |
3 | 18.49 | ₹4,83,750 |
5 | 10.03 | ₹7,81,463 |
10 | 17.11 | ₹31,78,301 |
SI | 18.03 | ₹85,43,970 |
(Source: AMFI)
So, regardless of how small the investment is, consistency is the key to saving a large corpus despite market fluctuations. Instead of losing hope during a bear phase, or getting carried away during a bull phase — investors should remain committed to their investment discipline.