Crorepati formula: Rs 9,000 SIP in this fund has given over Rs 1 crore in 14 years; check details

Mutual fund investment: The instability of the stock market has prompted individuals to explore mutual funds as a more reliable investment option. Examples of funds yielding substantial returns of 10 to 20 times over an extended timeframe have piqued the interest of potential investors. Nonetheless, it is crucial to bear in mind that mutual fund investments carry inherent risks tied to market fluctuations.

While high returns are possible in the market, there is also a risk of financial loss. It is imperative for investors to conduct extensive research and seek guidance from financial advisors before entering into mutual fund investments to guarantee well-informed choices. While the promise of lucrative returns may be attractive, it is essential to approach mutual fund investing with caution and a carefully crafted strategy.

Several mutual fund (MF) schemes have historically provided significant returns, helping investors build substantial wealth. One such scheme is the Nippon India Small Cap Fund, which currently has assets under management totaling Rs 61,646 crore as of November 30, 2024. 

It is an open-ended equity scheme that primarily invests in small-cap stocks and has consistently grown investors' wealth over the past 14 years. Launched in September 2010, the scheme has yielded a return of 22.22 percent since its inception, outperforming its benchmark, NIFTY Smallcap 250 TRI.

The small-cap mutual fund scheme boasts an impressive Rs 61,646 crore in assets under management and is heavily invested in sectors such as industrials, materials, and financials. The fund has the majority of its money invested in Capital Goods, Financial Services, Consumer Staples, and Healthcare sectors. Key holdings in the scheme's portfolio include prominent stocks like HDFC Bank, MCX, Kirloskar Brothers, Apar, and Tube Investments.

Returns

Over the past year, the scheme has yielded a return of 31.10%, 29.26% over the last 3 years, and 35.76% over the last 5 years. The returns over the last 10 years have been 22.33%. If an individual had invested Rs 9000 monthly in the scheme for 14 years, their investment would have grown to Rs 1,14,70,364, with an annualized return of 25.95%.

The scheme's document indicates that a Rs 10,000 investment would have grown to Rs 45,838 over the last 5 years and to Rs 176,052 over the last 14 years, surpassing the benchmark returns of Rs 66,365.

Period    This fund    Category average
6 months    1.76%    5.52%
1 year            28.38%    29.01%
3 years            26.97%    22.86%
5 years            36.11%    32.65%
7 years            21.63%    18.68%
10 years    23.03%    19.28%