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)|
(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%).