People often think that a large amount is needed for investment. But the truth is that if you keep investing a small amount every month in a good mutual fund, then over time this small amount can also become a big capital.
This is the ‘magic of compounding’. In this, the returns you get during the initial years start earning returns themselves later. And when this process continues for a long time, the results can be surprising.
SIP: Slow but strong steps
SIP means Systematic Investment Plan – it means investing a fixed amount every month. The sooner this habit is started, the more beneficial it proves to be.
ICICI Prudential Bluechip Fund – Check out SIP performance
For example, if someone had started investing Rs 11,000 every month in ICICI Prudential Bluechip Fund three years ago, then till now his total investment would have been Rs 3.96 lakh, which would have increased to Rs 5.46 lakh with an annualised SIP return of 18.28%.
In five years, this SIP of Rs 6.6 lakh would have turned into an investment of about Rs 11.1 lakh, earning an annualised return of 24.07%. And if this SIP had been running since 2008, the launch of the fund, a corpus of about Rs 1 crore would have been created by now – that too with an investment of just Rs 21.12 lakh, attracting an annualised return of 15.79%.
Also read: Gold mutual funds or equity funds: Return comparison over 1, 5 and 10 years
ICICI Prudential Bluechip Fund’s performance on lump sum investment
The fund has been a consistent performer in the short and long term both and comprehensively beaten the benchmark’s returns over various periods. It has generated 11.42% return in 1 year, 22.14% in 3 years, 26.82% in 5 years and 14.11% in 10 years. Since inception, it has given investors a return of 15.10%.
An investment of Rs 1 lakh in the ICICI Prudential Bluechip Fund made 17 years back would be worth now nearly Rs 11 lakh.
In comparison, its benchmark BSE 100 TRI has given an 11% return in one year, 18.89% in 3 years, 25.35% in 5 years and 13.36% in 10 years.
If we look at the average annualised return of the largecap mutual fund category, it was 8.79% in the last one year, 18.72% in 3 years, 24.11% in five years and 12.22% in 10 years.
ICICI Prudential Bluechip Fund was launched on 23 May 2008 and it has assets under management (AUM) of Rs 68,034 crore (as of April 30, 2025). The fund’s portfolio includes some of the most trusted companies in the country — HDFC Bank, ICICI Bank, Reliance, L&T, Maruti Suzuki, Airtel, Axis Bank, UltraTech Cement, Infosys and Sun Pharma. Experienced fund managers like Anish Tawakle and Vaibhav Dusad manage the scheme.
But investing comes with risks.
Now the important thing — it is possible to get good returns in mutual funds, but there is no guarantee. Even if the fund has performed well in the past, it is not necessary that the same growth will be seen in the future.
Because mutual funds are market-linked, and the market fluctuates. Sometimes investors may have to suffer losses.
So it is not wise to invest just by looking at returns. You have to think about what is your risk-taking capacity, what is your investment goal and for how long you are investing money.
Also read: 5 financial pitfalls of the Indian ‘log kya kahenge’ mindset
Summing up…
Investing through SIP for a long time can be a really good way to build a big fund. But one should not take a decision in haste or without thinking.
Information, planning and caution – these are the three most important weapons to become a smart investor. Only then can you not only get returns, but also keep the risk under control. Remember – SIP brings success, but not shortcuts.
