A SIP of just Rs 10,000 in this mutual fund turned into Rs 6.75 crore in 32 years

Everyone knows about the great returns of mutual fund schemes. But, stories of investors becoming millionaires by investing a small amount are rare. If you had started investing Rs 10,000 in SBI Large and Midcap Fund in 1993 through SIP, you would have had Rs 6.75 crore today. This scheme was launched about 32 years ago. It has made investors rich.

An investment of Rs 1 lakh would have become more than 54 lakhs

If a lump sum investment of Rs 1 lakh had been made in SBI Large and Midcap Fund in 1993, then today this money would have become Rs 54.84 lakh. This is an example of the great returns from long-term investment. Investors get the benefit of compounding by investing in the long term. The power of compounding turns an investor who makes small but regular investments into a millionaire. This is the reason why financial advisors advise investors to invest for the long term in mutual fund schemes. Especially they ask to invest through SIP.

13.33% annual return since inception

SBI Mutual Fund said in a statement issued on March 3, "SBI Large & Midcap Fund has completed 32 years. This open-ended scheme invests in both large-cap and mid-cap stocks. The scheme has given a return of 13.33 per cent since its launch on February 28, 1993. If someone had made a lump sum investment of Rs 1 lakh in this scheme at the time of launch, his money would have become Rs 54.84 lakh."

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Asset under management Rs 28,681 crore

This scheme has given excellent returns in the last five years as well. During this period, its return has been 19.15 percent CAGR. This shows that its returns have been excellent in the short term and long term. The scheme has given 15.17 percent CAGR return to the investors investing in this fund through SIP since its launch. This scheme has given 15.6 percent return in 15 years, 15.57 percent in 10 years and 13.65 percent return in 3 years. The asset under management of this scheme is Rs 28,681 crore. Saurav Pant has been managing this fund since September 2016.