Mutual Fund: We all know that Mutual Fund SIP can generate consistent returns as it can manage market volatility with disciplined investments.
That is why mutual funds can give good returns in the long term.
Do you know that a technology mutual fund has given a consistent SIP return of 20% per annum in the last 20 years? If someone had started SIP in this fund, you would have become a crorepati.
Rs 2.4 crore fund ready
If one had invested Rs 10,000 every month in this fund through SIP for 20 years, this amount would have grown to Rs 2.4 crore.
Here we will discuss this technology mutual fund scheme that has generated the highest SIP returns in the last 20 years. Even this fund is consistently outperforming its peers.
Which is the fund
We are talking about ICICI Prudential Technology Fund (Regular Plan), which has grabbed the first position in the list after passing multiple filters with the returns.
This fund has given the highest SIP returns in the last 20 years.
Although its direct plan has been available for the last ten years, we have focused on the regular plan.
Minimum SIP amount
The fund’s investment objective is to create wealth over the long term by building a portfolio invested in equity and
equity-related securities of technology and technology-dependent companies.
As far as the minimum amount is concerned, you can invest a minimum of Rs 5,000 in a 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.
Focus on large-cap companies
In today’s time, this fund invests more in large-cap companies. Eighty-eight percent of its total investments are in this segment. And there is 6-6% investment in midcap and small-cap companies.
Do note that this is a sector fund. Hence it is classified as a very high-risk fund. Its current AUM (Assets Under Management) is Rs 9,182 Crore.
Its current expense ratio is 2.1 percent. Its expense ratio for the direct plan is 0.89%.
check return
The fund’s annual return has been 20% in the last 20 years. The fund’s annualized return in the last 15 years has been 21%.
The fund’s annualized return in the last ten years has been 21.5%. The fund’s annualized return in the last five years has been 26.8%.
The fund has yielded 29% in the last 21 years. This technology fund has given consistent returns over the medium to the long-term horizon of 5 to 20 years.
Investors would have benefited from both SIP and lump sum investments if invested for a longer duration.
On the other hand, it invests in a single sector and is very high risk.
Alternatively, you can invest in a diversified portfolio of mutual funds, including large-cap, mid-cap, and small-cap funds.
