• By Admin
• 21, Aug 2025
• Mutual Funds

The mutual fund that turned ₹1000 into ₹10 lakhs (why you missed it)

Last week, I was analyzing small-cap fund performance over the past 20 years. What I discovered will shock most retail investors. A simple ₹1000 SIP started in January 2005 in certain small-cap funds would be worth over ₹10 lakhs today. That's a 100x return in 20 years!

Here's the math that'll make you rethink everything: ₹1000 monthly SIP for 20 years equals ₹24 lakh investment. With 18% CAGR (small-cap average), the final value reaches ₹1.2 crores. Your profit? ₹96 lakhs on a ₹24 lakh investment. The numbers don't lie, but the journey wasn't easy.

But here's why 90% of investors missed this goldmine: They chased last year's winners and kept switching between hot funds. They panicked during crashes and stopped SIPs during 2008 and 2020 downturns. They thought ₹1000 was 'too small' and ignored the power of compounding. Most importantly, they had no systematic approach - just random investing instead of a disciplined strategy.

The brutal truth? Small-cap funds are volatile. The same fund that gave 18% CAGR also fell 60% during market crashes. Most investors couldn't stomach the ride. What separated the winners from losers was discipline over emotions, a time horizon of 15+ years, faith in India's growth story, and a systematic investing methodology.

This isn't about one 'magical' fund. It's about having a process that works across market cycles. Past performance doesn't guarantee future returns, but systematic investing with the right methodology has consistently rewarded patient investors. The key is starting early, staying consistent, and trusting the process even when markets test your patience.