This Mutual Fund generated 20% SIP Returns in the last 20 years

We all know that mutual fund SIPs can generate consistent returns as it takes care of market volatility with disciplined investments. In the long term, mutual funds can generate high returns. Do you know that this Technology Mutual Fund has generated 20% SIP returns in the last 20 years. If one would have invested 10,000 per month through SIP for 20 years, this amount would have now grown to Rs 2.4 Crores. In this article we would provide details about this technology mutual fund scheme that generated highest SIP returns in the last 20 years. Even this fund is consistently beating its peers.

Also Read: This ETF generated high returns for 9 out 10 calendar years

How we filtered this mutual fund scheme?

We considered all equity mutual fund schemes, including sector funds. Means this includes large cap funds, mid cap funds, small cap funds, balanced funds, index funds and sector funds like Technology funds, Infra funds, FMCG funds etc.,

Filtered fund that generated highest SIP returns in the last 20 years. Since the direct plans were existing only in last 10 years, we have considered regular plans.

ICICI Prudential Technology Fund (Regular Plan) stands out 1st in the list after applying these filters.

This fund generated highest SIP returns of 20% in the last 20 years while next 5 equity funds generated between 18% to 19.5% returns during a similar period.

This Mutual Fund generated 20% SIP Returns in the last 20 years

About ICICI Prudential Technology Fund

The investment objective of this fund is to generate long-term capital appreciation by creating a portfolio that is invested in equity and equity related securities of technology and technology dependent companies.

One can invest a minimum of Rs 5,000 in lump sum or Rs 1,000 through SIP.

While there is no entry load, there is an exit load of 1% if redeemed before 15 days.

Currently this fund invests 88% in large cap companies, 6% each in midcap and smallcap companies.

Since this is a sector fund, this is categorized as very high risk fund.

Current AUM is Rs 9,182 Crores.

Its current expense ratio is 2.1%. Its expense ratio for direct plans is 0.89%.

Also Read: List of Mutual Funds doubling every 5 years

Where does this mutual fund invest now?

While this fund invests majorly in technology companies, it can invest in both India markets and overseas markets.

Its concentration is on 49 companies now. Its top holdings are Infosys, TCS, HCL Tech, Bharti Airtel, Wipro, Tech Mahindra, Mindtree, Accenture, Zee Entertainment, PVR, Siemens etc.,

How is the performance of the fund?

Let us check the performance of SIP, lump sum and rolling returns.

A) SIP Returns

Last 20 years – 20% annualised returns

Last 15 years – 21% annualised returns

Last 10 years – 21.5% annualised returns

Last 5 years – 26.8% annualised returns

Last 1 year – 29% returns

B) Monthly SIP Amount Growth

20 Years – 10,000 SIP per month would have grown to Rs 2.4 Crores

10 Years – 10,000 SIP per month would have grown to Rs 37.5 Lacs

5 Years – 10,000 SIP per month would have grown to Rs 11.6 Lacs

C) Annualised Performance

10 year annualized returns – 22%

7 year annualized returns – 20%

5 year annualized returns – 26%

3 year annualized returns – 35%

1 year return – minus 12%

D) Rolling Returns

From a 3 year rolling return perspective, this fund generated:

Over 12% returns – 90% of the times

1% to 12% returns – 10% of the times

Negative returns – zero times

From a 5 year rolling return perspective, this fund generated:

Over 12% returns – 70% of the times

1% to 12% returns – 30% of the times

Negative returns – zero times

Also, this fund generated 12.4% annualised returns since inception of Mar-2000.

This fund is able to generate 2% to 5% higher returns in last 5 years compared to its peer technology mutual fund schemes.

Also Read: This Largecap Fund generated highest SIP returns in last 5 years

Who can invest in this technology mutual fund?

This technology fund has generated consistent returns in medium to long term of 5 to 20 years. Investors would have benefitted in both SIP investments as well as lump sum investments if invested for the long term.

On the other side, this invests in single sector and is very high risk. See what is happening in the last 1 year. This fund generated minus 12% returns. If you do not have patience in such situations, you should ignore this mutual fund.

If you understood both pros and cons of investing in this mutual fund scheme, you can consider this fund as part of your mutual fund portfolio.

Alternatively, you can invest in a diversified portfolio of mutual funds consisting of large cap midcap and smallcap funds so that you can make consistent returns over the medium to long term.

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Suresh KP

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