This MF turned a ₹1L investment into ₹15L in 18-years
What's the story
The DSP Mid Cap Fund, a mutual fund scheme that primarily invests in mid-cap stocks, has demonstrated the power of compounding returns over time. An initial investment of ₹1 lakh at its inception in 2006, would have grown to an impressive ₹15.1 lakh by August 30, 2024. This growth is attributed to the fund's consistent performance and strategic investments in various sectors including auto components, industrial products, IT software, pharmaceuticals and banks.
Growth trajectory
Performance over the years
The DSP Mid Cap Fund has shown consistent growth over the years. An investment of ₹1 lakh would have increased to ₹1.44 lakh in one year, representing a return of 44.2%. Over three years, this investment would have grown to ₹1.67 lakh with an annualized return rate of 18.79%. In five years, the same investment would have swelled to ₹2.96 lakh at a rate of 24.2%, demonstrating the fund's ability to deliver substantial returns over time.
Decade performance
Long-term investment yields significant returns
The DSP Mid Cap Fund's performance over a decade is equally impressive. An initial investment of ₹1 lakh made 10 years ago would have grown fivefold to ₹5.16 lakh, with an annualized return rate of 17.83%. This long-term growth further underscores the fund's potential for high returns and its ability to capitalize on the power of compounding.
Fund details
DSP Mid Cap Fund's assets
Launched on November 14, 2006, the DSP Mid Cap Fund has amassed assets under management worth ₹20,068.84 crore as of August 31, 2024. The fund's portfolio includes key stock holdings in Coforge, Bharat Forge, PFC, Coromandel International, IPCA Laboratories, AU Small Finance Bank and Atul Ltd. It is benchmarked against the Nifty Midcap 150.