Power of Compounding: How Rs 500 SIP in this mutual fund has turned into Rs 1.15 crore in 28 years

Compound Returns: If someone says that a Rs 500 monthly SIP in a mutual fund with a 12 per cent annualised return will give you a Rs 60,000 return, it will hardly generate curiosity as your investment during the period will also be Rs 60,000. But if someone says that in 40 years, it will give you Rs 60 lakh in return, the sound of such a large amount is most likely to turn your head, at a time, when your investment in those four decades will be just Rs 2.40 lakh. That's the power of compounding.

A little investment that looks like a miniscule figure in the short term can give gargantuan returns in the long term.

In mutual fund, SIPs and lump sum investments provide compound growth.

But of the two options, SIP has emerged as a popular option for analysing the data of the Association of Mutual Funds in India.

In India, one can invest in some mutual funds with an SIP as little as Rs 100, but in most of the funds, the minimum SIP investment is Rs 500.

In this write-up, we will show you what a Rs 500 SIP each in some of the oldest and most successful mutual fund schemes in India has given since their inception.

Nippon India Growth Fund

One of the oldest private mutual fund schemes in India, the scheme was launched in October 1995.

The fund has given annual returns of 23.26 per cent ever since.

A monthly SIP of Rs 500 in the fund, or Rs 1,72,000 in total, has turned into Rs 1,15,07,578 as of now.

Franklin India Prima Fund

The fund launched in December 1993 has completed its 30 years.

Its annual return in those three decades has been 20.77 per cent.

A Rs 500 SIP, or Rs 1,83,000 investment, has turned into Rs 1,00,71,043 as of today's date.

Franklin India Flexi Cap Fund

The fund, launched in September 1994, has given 20.22 per cent annual returns since its inception.

A Rs 500 SIP in the fund, or Rs 1,78,000 investment, has turned into Rs 77,06,798. 

HDFC ELSS Tax Saver

The fund was launched in March 1996 and has given 21.47 per cent annual returns ever since.

A Rs 500 monthly SIP in the fund, or an investment of Rs 1,69,000 in total, has turned into Rs 73,92,192 as of today's date. 

Franklin India Bluechip Fund

This scheme was also launched in December 1993 and has completed its three decades.

The fund has given annualised returns of 17.95 per cent.

A Rs 500 monthly SIP, or 1,83,000 investment, has turned into Rs 55,78,264 as of today's date.

Nippon India Vision Fund

The scheme that was launched in October 1995 has given 18.94 per returns ever since.

The person who started a Rs 500 monthly SIP at the launch has invested Rs 1,72,000 as of now, and the value of their investment is Rs 49,64,658 as of today's date. 

HDFC Top 100 Fund 

The regular plan of the fund has given 18.41 per cent annual returns since its launch in October 1996.

An investor with a Rs 500 SIP in the fund, or a Rs 1,66,000 investment, will get Rs 37,74,672 as of today's date.

Aditya Birla SL Flexi Cap Fund

The fund, launched in August 1998, has given an 18.79 per cent annual return under its regular plan.

A monthly SIP of Rs 500, or Rs 1,54,500 investment, has given Rs 29,19,349 in total. 

SBI Long Term Equity Fund

The fund, launched in March 1993, has given 14.04 per cent annual returns under its growth plan.

A Rs 500 monthly SIP, or an investment of Rs 1,87,000 in total, has now turned into Rs 27,01,486. 

Franklin India ELSS Tax Saver Fund

The fund, launched in April 1999, has given annualised returns of 18.63 per cent since its inception.

A Rs 500 SIP, or Rs 1,51,000 investment, in the fund has given Rs 25,54,734 in total.

Sundaram Mid Cap Fund

The scheme that was launched in July 2002 has given annualised returns of 21.06 per cent since inception in its regular plan.

The investor with a monthly SIP of Rs 500, or Rs 1,31,000 in total, has a value of Rs 20,18,686 of their investment.