An investment of Rs 300 per day in this fund for 5 years would have given you 5 lakh
Have you ever envisioned putting a modest amount of money into a fund every day and ending up with Rs 5 lakh in five years? Doesn't it seem intriguing? Continue reading to learn more.
Discipline is always required for effective investment. “We don't have to be smarter than the rest. We must be more disciplined than the rest,” Warren Buffett correctly stated. As a result, success with mutual fund investments necessitates discipline.
A Systematic Investment Plan (SIP) is one method of exercising investing discipline. SIP is a method that allows you to invest in mutual funds (and also stocks) in small amounts on a regular basis. SIP allows you to invest in mutual funds on a daily, weekly, fortnightly, monthly, quarterly, and yearly basis.
When it comes to returns, equity funds appear to be the greatest option. They do, however, represent a higher risk than fixed income. However, this mutual fund has amassed Rs 5 lakhs in 5 years by investing Rs 300 every day. The fund in question is the ICICI Prudential Balanced Advantage Fund.
If you began investing Rs 300 per day in the ICICI Prudential Balanced Advantage Fund on August 10, 2017, you would have amassed Rs 5.05 lakh to date, which is about 1.4 times the original amount invested. This fund's daily SIP earned an XIRR of 12.36 per cent.
In fact, investing in the Nifty 50 in a similar manner produced nearly identical results. Furthermore, as compared to the Nifty 50, the ICICI Prudential Balanced Advantage Fund has a lower risk. The ICICI Prudential Balanced Advantage Fund primarily invests in stock and debt assets.
In terms of returns, it appears to outperform the category average across all trailing periods.
However, when it comes to risk measures, the fund performs inferior to the category average.
As previously said, investing is a game of discipline, and nothing beats investing via SIP. However, it is also critical to examine your risk profile and match it to the risk profile of the fund.
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