Crorepati goals: Rs 10,000 SIP in this fund in 1993 would have given you Rs 5.80 crore; check details

During a period of heightened concern among investors regarding the fluctuating Indian equity market, numerous experts are recommending continued investment in SIPs for long-term wealth accumulation and crorepati goals. According to Securities and Exchange Board of India Chairperson Madhabi Puri Buch, there is no better time than the present to consider investing in SIPs. 

Buch, while referencing data, emphasized the importance of avoiding market timing and highlighted the benefits of SIPs in terms of averaging out acquisition costs. At the unveiling of SBI Mutual Funds’ Rs 250 JanNivesh SIP scheme, Buch stated, “The most favourable returns from market-linked instruments are typically achieved by refraining from trying to time the market.” 

She further emphasized that SIPs are an ideal investment product due to their ability to mitigate risk through cost averaging, making them a sound investment strategy.

Over time, numerous mutual fund schemes have demonstrated impressive performance, enabling investors to turn their modest monthly contributions into a substantial portfolio.

Canara Robeco Asset Management Company recently marked the 32nd anniversary of one of its schemes that has consistently delivered impressive returns since its inception. This open-ended hybrid scheme primarily focuses on equity and equity-related instruments. 

Canara Robeco Equity Hybrid Fund

The Canara Robeco Equity Hybrid Fund aims to achieve long-term capital appreciation by maintaining a balanced portfolio of equity and debt investments. This strategy is tailored for the average investor, simplifying the asset allocation process and effectively spreading risk.

This fund, established on February 1, 1993, is classified as an aggressive hybrid fund, intended to capitalize on growth opportunities in equity markets while generating income from fixed income securities. As of December 31, 2024, the fund's assets under management stood at Rs 10,747.36 crore.

Canara Robeco Equity Hybrid Fund: Investment

The fund predominantly allocates between 65-80% of its assets in equity and equity-related instruments, with the remaining 20-35% in debt and money market instruments. 

As of December 31, 2024, the fund had 48.01% of its assets invested in large cap stocks. Key holdings in its portfolio include HDFC Bank, ICICI Bank, and Infosys.

Canara Robeco Equity Hybrid Fund: Returns

Over the past 1, 3, and 5 years, the scheme has achieved CAGR returns of 15.23%, 11.91%, and 15.53%, respectively. This outperformed the benchmark CRISIL Hybrid 35+65 - Aggressive Index, which returned 12.69%, 11.85%, and 14.59% over the same periods, as well as the BSE SENSEX TRI, which returned 9.41%, 11.69%, and 14.99%.

If an investor had started a monthly SIP of Rs 10,000 since the inception of the scheme, their investment would have grown to Rs 5,80,92,367 by December 31, 2024, with an XIRR of 13.90%. Conversely, a lump sum investment of Rs 10,000 at inception would have grown to Rs 3,46,160.