Just as any other ‘magic’, the magic of compounding should also be seen to feel it. When you make an investment, it can grow to a sizeable sum, and it tends to grow at a faster pace during the later years than during the early years.
The magic of compounding makes handling investments a simple affair. Even Oracle of Omaha Warren Buffett once said that investing is a ‘simple game’ that financial advisors have made harder than it is.
So, we can say that consistency is the key to saving a large corpus despite volatility. And rather than losing hope during a bear phase, it is recommended that investors remain committed to their investing discipline.
| Value Funds | 10-year-return (%) | AUM ( ₹crore) |
| ICICI Prudential Value Discovery Fund | 17.63 | ₹27,677 |
| HSBC Value Fund | 18.04 | ₹8,189 |
(Source: AMFI, regular returns as on April 3, 2023)
| Value Funds | Investment (SIP of 10K for 10 years) | 10-year-return |
| ICICI Prudential Value Discovery Fund | ₹12 lakh | ₹32,84,499 |
| HSBC Value Fund | ₹12 lakh | ₹33,71,144 |
As we can see in the table above, ICICI Prudential Value Discovery Fund gave a return of 17.63 percent in the past 10 years while its assets under management (AUMs) stand at ₹27,677 crore.
This means if someone had invested ₹10,000 every month, the investment of ₹12 lakh would have grown to ₹32,84,499.
At the same time, HSBC Value Fund gave a return of 18.04 percent with and its AUMs stand at ₹8,189 crore.
This means if someone had invested ₹10,000 every month, an investment of ₹12 lakh would have grown to ₹33,71,144 by now.
Here we share more details on these two mutual fund schemes:
ICICI Prudential Value Discovery Fund: The scheme was launched on August 16, 2004. It has given a return of 19.35 percent since its inception. This means if someone had invested ₹10,000 at the time of launch, it would have grown to ₹2,69,290 by now.
The key constituent stocks of the scheme are ONGC, Sun Pharma, NTPC, ICICI Bank and Bharti Airtel.
HSBC Value Fund: This scheme was launched on January 8, 2010. It has given a return of 14.54 percent since inception. This means if someone had invested ₹10,000 at the time of launch, it would have grown to ₹59,598 by now.
The key constituent stocks of the scheme are ICICI Bank, NTPC, SBI, Infosys, Sun Pharma and HDFC Bank.
