Crorepati Making Mutual Fund Scheme: 962% Returns! Rs 10,000 SIP Per Month Becomes Rs 2.78 Crore In 21 Yrs

Systematic investment plans (SIPs) are offered by mutual fund companies. SIPs are a disciplined form of investment, where a fixed amount is deducted from your bank account at a scheduled time. That being said, SIPs are also seen as one of the best investment options to hedge long-term returns. And in the case of the ICICI Prudential Value Fund, this is true.

ICICI Prudential Value Fund has emerged as a crorepati-making investment scheme. An SIP of Rs 10,000 per month with an upfront investment of Rs 1 lakh for 21 years records a whopping 962.15% gain.

As per Value Research Online data, if you invested an upfront amount of Rs 1 lakh in ICICI Prudential Value Fund and carried a monthly SIP of Rs 10,000 for a span of 21 years, you would gain an annualized return of 18.46%. In total you would have invested Rs 26.20 lakh across 21 years, and your corpus would come to around Rs 2,78,28,405, or over Rs 2.78 crore.

ICICI Prudential Value has outperformed BSE 500 TRI and equity value-oriented schemes. Over a 3-year span, ICICI Prudential Value recorded 20.85% upside, while 5-year performance is up by 25.14%.

On a year-on-year basis, ICICI Prudential Value recorded 11.40% upside, surpassing its peers. For instance, SBI Contra Fund saw 4.02%, while HSBC Value Fund climbed 5.23%, Bandhan Value Fund - Regular Plan surged 3.35%, and Nippon India Value Fund soared by 5.06%, as per Value Research Online.

But data also showed that if an investor invested Rs 10 lakhs in ICICI Prudential Value Fund scheme since inception, they would record a compounded annual growth return (CAGR) of 20.1%, and their corpus would be worth Rs 4.85 crore.

ICICI Prudential Value Fund was launched on August 16, 2004. The scheme is an open-ended equity scheme following a value investment strategy. The scheme invests in value stocks-good companies temporarily available at good bargains, with the potential for long-term growth.

The investment objective of the scheme is to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

As per the main profile of the scheme, the scheme is suitable for investors who are willing to participate in the process of discovering stocks which are undervalued but have the potential to do well due to strong fundamentals and those stocks which are likely to grow with the revival in economic growth.

Also, the scheme is suitable for investors who are willing to invest for a fairly long term with an aim to benefit from the full investment cycle and have over 5 years of investment horizon. Investors who are looking to invest in a diversified portfolio can consider this scheme.

However, investors should consult their financial advisor if in doubt about whether the product is suitable for them.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.