Mutual Fund Magic: How ₹10,000 Monthly SIP Turned into ₹25 Lakh in 11 Years with This Scheme

Long-term investors once again have a reason to celebrate! According to Kotak Asset Management Company, its Kotak Equity Savings Fund has delivered impressive returns over the past decade. If an investor had started a monthly SIP of ₹10,000 in October 2014, the investment would have grown to ₹25.1 lakh by October 2025, reflecting an 11.05% CAGR (Compound Annual Growth Rate).

This performance highlights how disciplined SIP investing and long-term compounding can help investors achieve substantial wealth creation — even with moderate risk exposure.

📈 Kotak Equity Savings Fund: An Overview

Launched in October 2014, the Kotak Equity Savings Fund is a hybrid mutual fund that primarily capitalizes on arbitrage opportunities in the cash and derivatives segments. By strategically balancing equity exposure and debt instruments, the fund aims to provide steady income while maintaining long-term capital appreciation.

As of October 2025, the fund has completed 11 successful years with assets under management (AUM) crossing ₹8,400 crore. Since inception, it has generated an average annualized return (CAGR) of 10.3%, outperforming its benchmark, the Nifty Equity Savings Index TRI, which has given 9.09% during the same period.

💰 From ₹10,000 to ₹29,659: Lump Sum Growth

According to data from Kotak AMC, if an investor had made a lump sum investment of ₹10,000 in October 2014, the value today would have grown to approximately ₹29,659 — nearly tripling the original amount.

However, those who opted for a Systematic Investment Plan (SIP) benefited even more. With consistent monthly contributions of ₹10,000 over 11 years, their total investment of ₹13.2 lakh would now be worth ₹25.1 lakh, nearly doubling the corpus — a testament to the power of regular investing and compounding returns.

🧮 Investment Strategy: Leveraging Arbitrage and Balanced Allocation

The fund follows a balanced hybrid strategy, utilizing both equity arbitrage (to capture short-term opportunities) and debt instruments (for stability and income).
This unique mix helps reduce volatility while providing returns higher than traditional fixed-income products. The arbitrage mechanism also ensures that the fund remains relatively low-risk, making it suitable for conservative investors seeking equity-like gains with lower market exposure.

🏦 Top Portfolio Holdings

As per the latest portfolio disclosure, the Kotak Equity Savings Fund holds stakes in several leading Indian companies across diverse sectors:

• Maruti Suzuki – 3.67%

• Hero MotoCorp – 3.24%

• State Bank of India – 2.5%

• Radico Khaitan – 1.97%

• Poonawalla Fincorp – 1.85%

• Bharti Airtel – 1.68%

• PNB Housing Finance – 1.68%

• Indus Towers – 1.65%

This diversified portfolio helps mitigate risk while ensuring steady performance across market cycles.

📊 Risk Metrics and Management

The fund’s Sharpe Ratio of 1.02 indicates efficient risk-adjusted returns, while a Standard Deviation of 5.08% shows relatively low volatility. Its portfolio turnover ratio of 448% reflects an active management style focused on maximizing returns through timely rebalancing.
The fund is co-managed by Devender Singhal and Abhishek Bisen, both seasoned professionals with deep expertise in equity and fixed-income markets.

⚠️ Expert Advice: Past Returns ≠ Future Guarantee

Financial experts caution investors that past performance should not be taken as a guarantee of future returns. While Kotak Equity Savings Fund has demonstrated strong consistency, future market dynamics may vary.
Hence, investors are advised to consult financial advisors before making investment decisions and ensure that the fund aligns with their risk tolerance, time horizon, and financial goals.

💡 Takeaway

The Kotak Equity Savings Fund showcases how long-term SIP investing, even in hybrid funds, can yield substantial wealth over time. By investing ₹10,000 per month, investors could build a corpus of ₹25 lakh in 11 years, all while managing risk effectively.

For those seeking steady, inflation-beating returns with moderate volatility, hybrid funds like this one can be a smart addition to a diversified portfolio — proving once again that time in the market beats timing the market.