₹1 lakh becomes ₹1 crore! Is this a mutual fund scheme or a money printing machine? – 2024-04-29 04:33:19

by times news cr

2024-04-29 04:33:19
New Delhi: Many investors prefer to invest money in flexi cap funds. These mutual fund schemes provide the flexibility to invest across different market caps. With this the investors’ portfolio gets diversified. This helps in reducing the risk. Market opportunities can also be taken advantage of. Flexi cap funds are a good option to achieve long term goals. With compounding they can give good returns. If you also want to invest in flexi cap fund, then there is one such mutual fund scheme that you can think about. It has given more than 40% returns in the last one year. The name of this scheme is Aditya Birla Sun Life Flexi Cap Fund. Since its inception in 1998, it has performed well by generating annual returns of 21.73% (CAGR).

In other words, it can be said that if someone had invested Rs 1 lakh in this fund when the scheme was launched, he would have got a return of more than Rs 1 crore in 25 years.

How has been the performance of the scheme?

The fund has shown strong performance over different periods.TermReturn (%)1 year40.633 years17.385 years16.20Since inception21.73
Now if we calculate the returns, a monthly SIP of Rs 10,000 will give approximately Rs 9,22,493 after five years. Similarly, if the same amount is invested for 10 years, then an earning of Rs 42.17 lakh can be achieved. If you increase the investment amount slightly. Suppose you invest Rs 50,000 for 10 years, you can accumulate around Rs 2.11 crore.

some more features

  • Total Expense Ratio: The TER of the scheme is 1.68%. This means that out of every Rs 100 invested in the fund, Rs 1.68 is deducted annually to cover expenses.
  • Sharpe Ratio: The fund’s Sharpe ratio is 0.89%. The Sharpe ratio tells you how much extra return you get for each unit of risk.
  • Beta Ratio: The beta ratio of this fund is 0.94%. This means that the fund’s returns are slightly less volatile than the market. A beta of 1 indicates that the fund’s returns follow the market.

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