New Delhi: In an inspiring testament to the magic of compounding and disciplined investing, the SBI Focused Equity Fund has turned a modest monthly SIP of ₹10,000 into a staggering ₹1.54 crore over 20 years, showcasing exceptional long-term performance.
This focused equity scheme, which caps its portfolio at around 30 high-conviction stocks selected by the fund manager, has consistently delivered over 16% CAGR on SIP investments across multiple horizons: 18.56% over 3 years, 16.04% over 5 years, and 16.09% over 10 years.
At least 65% of its assets remain invested in equities, spanning large, mid, and small caps for balanced growth.
Experts hail SIPs as a safer avenue for average investors compared to lump-sum bets because they average out market volatility and instill financial discipline. The fund’s strategy of betting on quality companies has weathered ups and downs, rewarding patient investors handsomely.
While past performance offers no guarantees and equity funds carry market risks, this standout example underscores how starting early and staying invested can build substantial wealth. For those eyeing retirement or big goals, such stories reinforce the value of mutual funds in India’s growing investment landscape.