Investment Tips: This fund turned a monthly SIP of just Rs 10,000 into Rs 4.27 lakh in 3 years
Franklin India Balanced Advantage Fund: How ₹10,000 Monthly SIP Grew Into ₹4.27 Lakh in Just 3 Years
Mutual fund investments are often seen as long-term wealth creation tools, but some funds have surprised investors with strong returns even within a short span. One such example is the Franklin India Balanced Advantage Fund, a hybrid mutual fund scheme that has delivered impressive growth in just three years.
SIP of ₹10,000 Turned Into ₹4.27 Lakh in 3 Years
Launched in September 2022, the Franklin India Balanced Advantage Fund has emerged as a strong performer. An investor who started a Systematic Investment Plan (SIP) of ₹10,000 per month since its inception would have seen the portfolio grow to ₹4.27 lakh by August 2025. This performance highlights how disciplined SIP investing can help build wealth in a relatively short period, while also balancing risk.
One-Time Investment Also Yielded Strong Gains
Not just SIP investors, even lump sum investors have benefitted. For example, if someone had invested ₹1 lakh as a one-time investment in September 2022, the amount would have grown to around ₹1.42 lakh by 2025. Though lump sum growth is lower compared to SIP returns, it still reflects the fund’s consistent performance across market phases.
A Hybrid Approach: Equity + Debt
The Franklin India Balanced Advantage Fund is a hybrid scheme, which means it invests in both equities and debt instruments. By dynamically allocating assets between stock markets and fixed-income instruments, the fund aims to deliver stability along with growth. This balanced approach helps reduce risk compared to pure equity funds while still offering attractive returns.
As of August 29, 2025, the fund reported a Compounded Annual Growth Rate (CAGR) of 12.54%, outperforming its benchmark—Nifty 50 Hybrid Composite Debt 50:50 Index, which delivered 10.19% CAGR during the same period. The fund has also crossed an Asset Under Management (AUM) milestone of ₹2,700 crore, reflecting strong investor confidence.
Flexi-Cap Strategy for Equity Exposure
On the equity side, the fund follows a flexi-cap approach, investing across large-cap, mid-cap, and small-cap companies. This strategy ensures diversification across different market segments and helps capture growth opportunities. A team of six experienced fund managers currently oversees the portfolio.
Another advantage is accessibility—investors can start investing in this scheme with as little as ₹500 per month, making it suitable even for beginners who wish to start small.
Why Long-Term SIPs Work Best
Market analysts emphasize that the power of compounding benefits investors the most when investments are held over the long term. Regular SIPs not only average out the cost of investment but also help accumulate wealth steadily. This makes hybrid funds like Franklin India Balanced Advantage a preferred choice for investors seeking balanced risk-reward outcomes.
Important Note: Past Returns Are Not a Guarantee
While recent performance is encouraging, experts warn that past returns do not guarantee future performance. Investors should not invest solely based on historical numbers. Instead, they should carefully evaluate their risk tolerance, investment horizon, and financial goals before committing funds.
Hybrid funds are generally considered less risky than pure equity funds, but they still carry some level of market risk. Consulting a qualified financial advisor is always recommended before making any investment decisions.
The Franklin India Balanced Advantage Fund has delivered remarkable results in just three years, turning a monthly SIP of ₹10,000 into ₹4.27 lakh. Its hybrid strategy, strong CAGR performance, and low entry barrier make it attractive. However, investors should always align investments with long-term goals and risk appetite rather than chasing short-term returns.
