Mutual funds have proven to be a rewarding investment option for those with long-term financial goals. Recently, three mutual fund schemes completed 21 years since their launch, delivering impressive returns. Investors who consistently invested through a Systematic Investment Plan (SIP) of ₹10,000 every month in these funds have seen their investments grow to as much as ₹2 crores. These funds have offered annualized returns of up to 18%, highlighting their strength in wealth creation over time. Let’s take a closer look at these three schemes and how they’ve rewarded patient investors.
1. Nippon India Banking & Financial Services Fund
- SIP Return (21 years): 17.6% per annum
- Total Monthly SIP Investment: ₹25.2 lakh
- Value of SIP after 21 years: ₹2,16,97,205
Nippon India Banking & Financial Services Fund, launched on May 26, 2003, has emerged as a strong performer in the mutual fund space. Focused on banking and financial sector stocks, this scheme has delivered robust returns for investors. The fund’s asset under management (AUM) currently stands at ₹6,138 crores, reflecting its popularity and consistent performance.
For those who had started a monthly SIP of ₹10,000 since its inception, the investment today would have grown to an impressive ₹2.16 crore. The fund’s annualized return for SIP investments stands at 17.6%, showcasing its ability to generate wealth for long-term investors.
2. Baroda BNP Paribas Multi Cap Fund
- SIP Return (21 years): 15.41% per annum
- Total Monthly SIP Investment: ₹25.2 lakh
- Value of SIP after 21 years: ₹1,62,33,295
Baroda BNP Paribas Multi Cap Fund, which completed 21 years on September 12, 2023, has been a consistent performer in both the short and mid-term, with an AUM of over ₹2,500 crore. The fund’s diversified portfolio, which includes large-cap, mid-cap, and small-cap stocks, has been a key factor behind its strong returns.
Investors who started a monthly SIP of ₹10,000 since the fund’s launch would have seen their investments grow to ₹1.62 crore over 21 years. The fund has delivered an annualized SIP return of 15.41%, making it a solid choice for those looking to build long-term wealth. Additionally, the fund’s Sharpe ratio of 1.11 highlights its strong risk-adjusted returns.
3. Canara Robeco Flexi Cap Fund
- SIP Return (21 years): 16.32% per annum
- Total Monthly SIP Investment: ₹25.2 lakh
- Value of SIP after 21 years: ₹1,83,14,546
The Canara Robeco Flexi Cap Fund, launched on September 16, 2003, offers the flexibility to invest in large-cap, mid-cap, and small-cap stocks, making it a reliable performer in the mutual fund market. With an AUM of ₹13,510 crore, this fund has consistently outperformed, offering high returns while balancing risk.
If an investor had started a ₹10,000 monthly SIP at the time of its launch, their investment would now be worth ₹1.83 crore. The fund has provided an annualized SIP return of 16.32% over 21 years, highlighting its potential to generate significant wealth for investors over the long term.
How These Funds Have Created Wealth Over 21 Years
All three of these funds have one thing in common: they’ve been reliable, long-term performers, rewarding disciplined investors who stayed invested for the full 21 years. A monthly SIP of ₹10,000 in any of these schemes has grown into a sizable corpus, turning a total investment of ₹25.2 lakh into ₹1.5-2 crore.
The strong performance of these funds can be attributed to the following key factors:
- Sectoral and Multi-Cap Focus: Funds like Nippon India Banking & Financial Services Fund, which focus on specific sectors, tend to benefit from the growth and resilience of the industries they target. Similarly, multi-cap and flexi-cap funds like Baroda BNP Paribas and Canara Robeco offer a balanced approach, diversifying risk while capturing growth across market segments.
- Consistent Fund Management: Strong and stable management teams have played a crucial role in ensuring these funds consistently outperformed their benchmarks, helping investors achieve high returns.
- Long-Term Investment Discipline: SIPs provide the benefit of rupee cost averaging and compound growth. Over 21 years, market fluctuations are smoothed out, and investors benefit from the compounding effect, which leads to significant wealth creation over time.
Here’s a quick comparison of their performance:
| Fund Name | Annual SIP Return | Total SIP Value After 21 Years | Lump Sum Return (p.a.) |
| Nippon India Banking & Financial Services Fund | 17.6% | ₹2.16 crore | 21.21% |
| Baroda BNP Paribas Multi Cap Fund | 15.41% | ₹1.62 crore | 16.36% |
| Canara Robeco Flexi Cap Fund | 16.32% | ₹1.83 crore | 18.40% |
Key Takeaways for Investors
These examples underscore the importance of staying invested for the long term and choosing funds that align with one’s risk appetite and financial goals. SIPs in mutual funds can turn modest monthly contributions into substantial wealth, as evidenced by these funds’ stellar track records over the past two decades.
Whether you’re new to investing or looking to optimize your portfolio, exploring mutual funds with a history of strong performance can be a great way to achieve your financial goals.
(Disclaimer: The purpose of this article is only to provide information about the scheme, not to recommend investment. Take any investment decision only after consulting your investment advisor.)
