Business News Desk -If long term investment is made through SIP, a fund worth more than crores of rupees can be created. There are many such schemes of equity mutual funds, which have made investors millionaires by investing through SIP with discipline. Aditya Birla Sun Life India GenNext Fund is one such scheme. It has created a fund of Rs 1.60 crore by investing Rs 10,000 every month for 19 years. Rs 10,000 every month means an investment of Rs 1.20 lakh in a year. This means an investment of Rs 22.8 turns into Rs 1.60 crore in 19 years.
This scheme was started in August 2005
Aditya Birla Sun Life India GenNext Fund was launched in August 2005. It is an open-ended equity fund, which invests on the consumption theme. It bets on the increasing number of working people in India, rising income of people and high value spending patterns. If Rs 1 lakh had been invested in August 2005 at the time of launch of this fund, it would have become Rs 2.35 lakh today. The one year CAGR return of this fund has been 17.68 percent, 3 years 22.38 percent and 5 years 18.84 percent.
Returns higher than benchmark
This scheme of Aditya Birla Sunlife Mutual Fund has given investors more returns than its benchmark index. Nifty India Consumption TRI is its benchmark index. Its three-year return has been 21.78 percent. This fund is managed by Chanchal Khandelwal. He has been managing this fund since 2015. This fund has been popular among investors seeking capital appreciation over the long term.
Risks in investing in thematic funds
This is a theme based fund. Investing in theme based funds has its own risks. For example, the range of companies or sectors in which such funds can invest is limited. Many times, if the performance of companies related to the theme is poor, it affects the fund as well. Therefore, if you want to invest in this fund, you should take the decision only after consulting your personal advisor.