Investing in mutual funds can give any person a large fund. Its biggest feature is that it can be started investing from Rs 100, 200 through SIP. Compound interest on investments in mutual funds also makes investors millionaires in the long term. One such mutual fund has made investors millionaires.
SBI Healthcare Opportunities Fund has converted investors’ SIPs of Rs 2500 into more than Rs 1 crore. The nearly 25-year-old fund has so far generated over 18 percent returns on an annualized basis. At the same time, its returns in the last year have been around 37 percent. The fund is 25 years old. The riskometer of this fund is quite high. That is, it comes under the category of high risk. The fund was launched on July 5, 1999. Since then, it has given tremendous returns to investors.
The highest allocation of this fund is in the healthcare sector. This allocation is about 93.23%. Apart from healthcare, it has allocations in chemicals and other sectors. About 3.50 percent of the allocation is in the chemical and material sector.
How did a fund of crores become from SIP of 2500?
The fund has generated a return of 18.27 percent on an annualized basis since its launch. If you had started an SIP of Rs 2500 at that time, i.e., had invested Rs 2500 every month, then today you would have a fund of around Rs 1.18 crore. In these 25 years, SIPs of 2500 would have resulted in a total investment of Rs 7.50 lakh. The remaining amount (about Rs 1.10 crore) would have been received as interest. In such a situation, you would have collected a large fund in these 25 years.
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