Mutual funds: How Rs 10,000 a month in SIP turned to Rs 3.50 crore

Kotak Mahindra AMC’s Kotak Bluechip Fund, which has recently marked a milestone of 25 years, has managed to deliver returns at a compound annual growth rate (CAGR) of 16.36% to SIP investors since its inception on December 29, 1998. The fund’s performance can be gauged from the fact that an investment of Rs 10,000 per month through SIP in this fund over the last 25 years translated into corpus of over Rs 3.50 crore as of January 31, 2024.

According to Kotak AMC, the fund has invested in the companies selected for their strong business fundamentals and capable management teams, making the fund an ideal choice for those looking to invest in blue-chip companies.

The latest factsheet showed that the fund presently holdings stocks such as HDFC Bank, ICICI Bank, Reliance Industries, Infosys, Larsen & Toubro, Axis Bank, ITC, Maruti Suzuki, TCS, UltraTech Cement, among others.

Nilesh Shah, Managing Director, Kotak Mahindra AMC said, “Over the past 25 years, India’s landscape has evolved significantly. Through every economic cycle, political phase and fundamental shift, the Kotak Bluechip Fund has mirrored India’s growth story.”

Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mahindra AMC said, “Kotak Bluechip Fund has successfully navigated various economic, political and social changes over the past 25 years. The fund has outperformed both Nifty 100 TRI and Nifty 50 TRI over various time periods.”

The fund’s current assets under management (AUM) stand at Rs 7,424.61 crore, as on January 31, 2024. Sectorwise, Kotak Bluechip Fund has given a maximum weightage of 25.03% to financial services. It was followed by consumer cyclical (17.32%), technology (11.95%) and basic material (7.92%). Among other major sectors, the fund has exposure in consumer defensive (9.28%), industrials (8.07%), energy (6.99%), healthcare (5.51%) and utilities (4.24%), among others.