scorecardresearchMutual Fund Investing: How to grow ₹12,000 per month into ₹74 lakh; Details here

Mutual Fund Investing: How to grow 12,000 per month into 74 lakh; Details here

Updated: 22 Nov 2022, 03:00 PM IST
TL;DR.
Had you invested 12,000 every month for 15 years since the launch of Franklin India Focused Equity Fund, the corpus would have grown to 74 lakh. We share more details on the scheme to help you decide if you should invest or not
Had you invested  <span class='webrupee'>₹</span>12,000 every month for 15 years since the launch of Franklin India Focused Equity Fund, the corpus would have grown to  <span class='webrupee'>₹</span>74 lakh. We share more details on the scheme to help you decide if you should invest or not

Had you invested 12,000 every month for 15 years since the launch of Franklin India Focused Equity Fund, the corpus would have grown to 74 lakh. We share more details on the scheme to help you decide if you should invest or not

Disciplined investing bears its fruits. If you invest even a tiny sum consistently, the corpus can grow really huge thanks to the rich dividends which the compounding accrues.

Franklin India Focused Equity Fund delivered a return of 13.71 percent since its inception on July 26, 2007. This means if someone had invested one lakh at the time of the scheme’s launch, it would have grown to 7,09,462 in November 2022. Although this is a huge sum, but the real fruits of compounding can be reaped when invested via systematic investment plan (SIP).

Sample this. A regular investment of 12,000 would have grown to 74.31 lakh in 183 months upon contribution of 21,96,000 i.e., an increase of 52,35,880.

As we can see in the table below, if someone had invested 12,000 consistently in past three years, the sum would have grown to become 6,00,582 against an investment of 4,32,000. In a five-year period, the sum would have grown to over 10 lakh against an investment of 7,20,000.

It is worth noticing that the rates of return were different for different time periods. As per the AMFI (Association of Mutual Funds in India) data, Franklin India Focused Equity Fund gave a return of 12.47 percent in past five years and 20.54 percent in past three years as on November 15, 2022.

Time                    Return (%)SIP of 12,000 grew to (Rs)Amount invested (Rs)
3 years                                                       20.546,00,5824,32,000
5 years                                                     12.4710,02,7867,20,000
Since inception13.7174,31,88021,96,000.

(Source: AMFI data)

Some key details

Franklin India Focused Equity Fund was launched on July 26, 2007. Total assets under management (AUM) have grown to 8,498 crore in the scheme, as per the AMFI data. The return of the benchmark index of the scheme (i.e., Nifty 500 Total Return Index) was 14.09 percent during the tenure of the scheme.

Top 10 companies where the fund has invested as on October 31 include ICICI Bank, HDFC Bank, Axis Bank, L&T, Bharti Airtel, SBI, Cipla, Maruti Suzuki, KEI Industries and Infosys.

Sector-wise, the mutual fund scheme comprises banks (34.14%), construction (7.49%), industrial products (6.32%), telecom (services- 5.31%), consumer durables (2.59%), petroleum products (2.33%), and call, cash & other current assets (4.61%).

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First Published: 22 Nov 2022, 03:00 PM IST