You must have come across recent advt from Reliance MF stating that Rs.10,000 invested in Reliance Growth Fund in Oct 1995 has grown to Rs.5 lakhs i.e. 50 times growth in 17 years. This works out to a return of more than 25% p.a.
Unfortunately no one got Rs.5 lakhs.
Why?
Because no one showed the patience to stay invested for 17 years. If you can invest in PPF for 15-20 years and insurance policies for 15-25 years, I wonder why you don't show the same commitment with MFs. Do that and you will become a crorepati.
In fact Reliance Growth is not the only fund to show such a stupendous performance. There are many funds that have delivered more than 20% returns over last 12-15 years.
- Franklin India Bluechip has given 24% p.a. returns since launch in 1993
- HDFC Index Sensex Plus - 22% p.a. since 2002
- DSPBR Opp Fund - 19% p.a. since 2000
- HDFC Top 200 - 23% p.a. since 1996
- Birla Sunlife Equity - 26% p.a. since 1998
- Tata Equity PE - 21% p.a. since 2004
- Sundaram Select Midcap - 31% p.a. since 2002
- ICICI Pru Discovery - 23% p.a. since 2004
- UTI Dividend Yield - 18% p.a. since 2005
- Reliance Pharma - 24% p.a. since 2004
- Kotak 50 - 21% p.a. since 1998
- HDFC Tax Saver - 30% p.a. since 1996 [+ your tax savings]
- ....and many more
These are, of course, returns for one-time investment. One-time investment requires lot more patience and courage as the volatility will be very high. So I would strongly recommend SIPs. This will reduce the timing risk and hence the volatility in returns.
By the way, even if you could manage 15% interest on FD for 17 years (which is impossible) you would have accumulated just Rs.1 lakh.
V.IMP.: Please don't invest in these funds merely based on the above information. Choice of funds has to be in line with your financial objectives, time frame, risk appetite and many other factors. You MUST consult your financial advisor before making any investment. The only purpose of giving the above details is to make you aware of the wealth creation potential of the mutual funds.
Unfortunately no one got Rs.5 lakhs.
Why?
Because no one showed the patience to stay invested for 17 years. If you can invest in PPF for 15-20 years and insurance policies for 15-25 years, I wonder why you don't show the same commitment with MFs. Do that and you will become a crorepati.
In fact Reliance Growth is not the only fund to show such a stupendous performance. There are many funds that have delivered more than 20% returns over last 12-15 years.
- Franklin India Bluechip has given 24% p.a. returns since launch in 1993
- HDFC Index Sensex Plus - 22% p.a. since 2002
- DSPBR Opp Fund - 19% p.a. since 2000
- HDFC Top 200 - 23% p.a. since 1996
- Birla Sunlife Equity - 26% p.a. since 1998
- Tata Equity PE - 21% p.a. since 2004
- Sundaram Select Midcap - 31% p.a. since 2002
- ICICI Pru Discovery - 23% p.a. since 2004
- UTI Dividend Yield - 18% p.a. since 2005
- Reliance Pharma - 24% p.a. since 2004
- Kotak 50 - 21% p.a. since 1998
- HDFC Tax Saver - 30% p.a. since 1996 [+ your tax savings]
- ....and many more
These are, of course, returns for one-time investment. One-time investment requires lot more patience and courage as the volatility will be very high. So I would strongly recommend SIPs. This will reduce the timing risk and hence the volatility in returns.
By the way, even if you could manage 15% interest on FD for 17 years (which is impossible) you would have accumulated just Rs.1 lakh.
V.IMP.: Please don't invest in these funds merely based on the above information. Choice of funds has to be in line with your financial objectives, time frame, risk appetite and many other factors. You MUST consult your financial advisor before making any investment. The only purpose of giving the above details is to make you aware of the wealth creation potential of the mutual funds.
