As they say, the proof of the pudding is in the eating. The magic of compounding must also be seen to believe. For instance, if you were consistent in making an investment of ₹15,000 every month via systematic investment plan (SIP) in JM Flexi cap fund (growth), you could have accumulated around ₹74 lakh by now in fewer than 15 years.
JM Flexi cap fund (growth) was launched on September 23, 2008. It has delivered a performance of 12.51 percent compound annual growth rate (CAGR) return since inception.
This means if someone had invested ₹10,000 at the time of its launch, it would have swelled to ₹55,915 as on April 30, 2023.
As far as SIPs are concerned, if someone were investing ₹15,000 in regular doses in this scheme, the total wealth accumulation would have been ₹6,58,017 in three years by making an investment of ₹5,40,000 only.
In five years, by making a total investment of only ₹9 lakh via SIPs, one could have accumulated ₹12.54 lakh.
Likewise, if someone had invested ₹15,000 on a regular basis for 10 years, total investment would have been ₹18 lakh while the total wealth would have swelled to ₹over ₹35.92 lakh, giving an absolute return of around 100 percent.
| Tenure | Investment (Rs) | Wealth accumulation (Rs) | Difference (Rs) |
| 3 years | 5.4 Lakh | 6,58,017 | 1,18,017 |
| 5 years | 9 lakh | 12,54,872 | 3,54,872 |
| 10 years | 18 lakh | 35,92,871 | 17,92,871 |
| 14 years 7 months | 26.25 lakh | 74,73,732 | 48,48,732 |
(Source: jmfinancialmf.com; wealth accumulation at 12.51% CAGR)
And when we speak about the total returns since inception, the returns are even higher.
Let us suppose, if you were investing ₹15,000 in this scheme via SIPs on a regular basis since the scheme’s launch in 2008, the total wealth would have accumulated to nearly ₹74.73 lakh by investing only 26.25 lakh, giving an absolute return of 185 percent.
More about this scheme
The fund is managed by Satish Ramanathan and Chaitanya Choksi. Its benchmark index is S&P BSE 500 TRI that has given a CAGR return of 12.60 percent during the same period as the fund scheme while the scheme delivered a return of 12.51 percent since inception.
The expense ratio is 2.32 percent for regular plan and 1.40 percent for direct plan.
This scheme has invested in the sectors which include financial services (28.67%), capital goods (12.24%), information technology (7.4%), consumer services (6.99%) and automobile and auto components (6.85%).
The constituent stocks include Larsen & Toubro, Ultra Tech Cement, HDFC Bank, ICICI Bank, RIL, Bank of Baroda, Infosys, Can Fin Homes, REC and Jubilant Foodworks.
