Mutual Fund: Amazing mutual fund, investment of Rs 10 lakh becomes Rs 1.13 crore..

Mutual funds are right… You've probably seen or heard this advertisement. This isn't just an advertisement; if mutual fund investments are done correctly and over the long term, they can quickly become a substantial investment. Today, we'll tell you about one such fund that turned an investment of ₹10 lakh into ₹1.13 crore. This fund is ICICI Prudential's Large Cap Fund.

This fund stands out for its consistent performance. Launched in May 2008, it is now over 17 years old. As a large-cap fund, this scheme invests in the top 100 companies, the largest by market cap. The fund adopts a bottom-up stock-picking approach.

How it invests

This fund doesn't have a strong bias toward any one sector, but selects the most promising companies within the sector. According to Anish Tawakale, Co-CIO (Equity and Fund Manager of the scheme), any company to be included in this portfolio must have a proven track record of profits, be a market leader, and have reasonable compounding potential.

Long-Term Large Cap Fund

Furthermore, regarding large caps and their relative attractiveness, Anish believes that due to the recent elevated valuations of mid- and small caps, investors should be cautious and consider rebalancing towards large caps. Large caps can offer better risk-adjusted returns in the current market setup. In its journey so far, the fund has weathered several market events, such as the 2008 financial crisis, interest rate hikes in 2013, and the COVID-19 pandemic in 2020. Throughout these periods, the fund has experienced low volatility and provided a positive experience for investors who remained invested for the long term.

How ₹10 lakh became ₹1.13 crore

Investing in large-cap companies provides stability during turbulent times and helps build wealth over the long term, making them a vital part of any core portfolio. These companies have a strong fundamental track record, making them less volatile than mid-cap and small-cap companies. According to data from Arthalabh.com, an initial investment of ₹10 lakh (May 23, 2008) would have grown to approximately ₹1.13 crore (approximately ₹1.13 crore) by October 31, 2025. This translates to an impressive CAGR (compound annual growth rate) of 15%. An investment in the fund's benchmark Nifty 100 TRI over the same period would have yielded ₹68.9 lakh (approximately ₹6.89 million), reflecting a CAGR of 11.3%.

This is the power of SIPs.

The fund's SIP returns are also excellent. If the initial monthly SIP was ₹10,000, an investment of ₹21 lakh would have grown to ₹95.8 lakh by October 31, 2025, a robust return of 15.5%. Investing in the benchmark over the same period would have yielded a return of 13.8%. Over the past three and five years, the fund has delivered returns of 17.8% and 22.1%, which are 3.5% and 3.2% higher than its benchmark, respectively. This trend has been consistent over the long term as well. Today, managed by Anish Tawakale and Vaibhav Dusad, the fund is the largest in its category, with an AUM of ₹75,863 crore. This is a result of long-term investor confidence. In terms of sectoral allocation, banking is among the fund's top holdings.

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