Mutual funds performance in the last 25 years

This article is in continuation of our article titled “Mutual funds performance in the last 20 years”

Once upon a time in Chennai, the birth of two successful mutual funds have taken place over a few drinks. Kothari Pioneer Asset Management Co. Ltd launched India’s first two private sector mutual funds in November 1993, namely, Kothari Pioneer Bluechip Fund (Franklin India Bluechip Fund) and Kothari Pioneer Prima Fund (Franklin India Prima Fund).

The Indian economy opened up in 1991 under the Narasimha Rao Government. India saw major reforms with the introduction of economic liberalization. The government decided to open up India economy to private and foreign investment and make it more market and service oriented. In 1992 the private sector was allowed into the mutual fund industry. Up until then, all the fund houses were state-owned with Unit Trust of India being a market leader.

The following mutual funds have successfully completed their silver jubilee and are few of the top performers in the industry.

NameInception DateReturn since launchWorth of Rs 5,000 SIP since the last 25 years (Rs) 
Franklin India Bluechip FundDecember 1, 199320.47%Rs 2.95 CrInvest
Franklin India Prima FundNovember 30, 199319.78%Rs 3.7 CrInvest
Canara Robeco Equity Tax Saver FundMarch 31, 199314.36%Rs 1.43 CrInvest
SBI Large and Midcap FundFebruary 28, 199314.21%Rs 2.32 CrInvest
HDFC Capital Builder ValueFebruary 1, 199414.13%Rs 2.04 CrInvest

Franklin India Prima Fund

Launched in December 1993, this fund gave 19.78% return since inception. The fund manages Rs 6,458 crore worth assets. In the last 10 years, the fund gave 22.79% annualized return. The fund focuses on investing in mid-caps that exhibit higher growth than large established companies. The fund manager Mr. R. Janakiraman comes with 19 years of experience in the small and midcap domain and uses it to manage the fund. A SIP started at inception 25 years ago in this fund is worth Rs 3.7 Cr right now. A Rs 15.15 lakh investment has grown to a whopping Rs 3.7Cr in just 25 years.

Franklin India Bluechip Fund

Launched in December 1993, this fund gave 20.47% return since inception. The fund manages Rs 7, 685 crore worth assets. In the last 10 years, the fund gave 16.07% annualized return. The fund invests in large and established businesses which have a long track record and enjoy leadership in their respective industries. The fund manager Mr. Anand Radhakrishnan is with the fund since 2007 and manages multiple funds of the fund house. He is a skilled manager with proficient stock picking experience. A SIP started at inception 25 years ago in this fund is worth Rs 2.95 Cr right now. A Rs 15.15 lakh investment has grown to a whopping Rs 2.95 Cr in just 25 years.

SBI Large and Midcap Fund

Launched in February 1993, this fund gave 14.21% return since inception. The fund manages Rs 2,352.8 crore worth assets. In the last 5 years, the fund gave 17.3% annualized return. The fund follows a blend of value and growth style of investing. Also, it follows both a top-down and bottom-up approach to stock picking and chooses companies across sectors. Earlier the fund was in the flexi-cap category and now is a part of the large and mid-cap category. The fund has a new manager since 2016, Mr. Saurabh Pant. He was with the fund house since 2007 and manages SBI FMCG Fund since 2011. His investment style is on the aggressive side. The results of his new strategy are yet to reap. A SIP started at inception 26 years ago in this fund is worth Rs 2.32 Cr right now. A Rs 15.60 lakh investment has grown to a whopping Rs 2.32 Cr in just 26 years.

Canara Robeco Equity Tax Saver Fund

Launched in March 1993, this fund gave 14.36% return since inception. The fund manages Rs 869 crore worth assets. In the last 10 years, the fund gave 19.47% annualized return. The fund has dual benefits of tax saving and equity investment. It follows a flexible investment strategy investing across market caps. Its portfolio is diversified with no sector or theme bias. The fund follows a growth style of investing emphasizing on the quality of business management. A SIP started at inception 25 years ago in this fund is worth Rs 1.43 Cr right now. A Rs 15.15 lakh investment has grown to a whopping Rs 1.43 Cr in just 25 years.

HDFC Capital Builder Value

Launched in February 1994, this fund gave 14.13% return since inception. The fund manages Rs 4,159 crore worth assets. In the last 10 years, the fund gave 20.20% annualized return. The fund is a value fund that aims to achieve capital appreciation/income in the long term by primarily investing in undervalued stocks. It follows a value style of investing. The fund managers, though relatively new to the fund, have over 18 years of experience. A SIP started at inception 25 years ago in this fund is worth Rs 2.04 Cr right now. A Rs 15 lakh investment has grown to a whopping Rs 2.04 Cr in just 25 years.

 

From the above examples, we can clearly see the benefits of SIP and long-term investing. Investing in mutual funds for the long term is clearly beneficial. Now you know where to invest for your retirement if you haven’t started planning for it already.

However, the golden rule is that do not invest in a fund based on just past performance. This should be just one of your criteria and not the sole criteria.

Happy retirement! Happy investing!

0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like
Read More

एचडीएफसी प्रूडेंस फंड को एचडीएफसी बैलेंस्ड एडवांटेज फंड में परिवर्तित कर दिया गया है

भारत की सबसे बड़ी और प्रचलित म्युचुअल फंड योजना,एचडीएफसी प्रूडेंस फंड विलय करने के लिए तैयार है और…