India’s economy is running fast and the biggest engine of this speed is our and your everyday shopping i.e. ‘consumption’. The share of consumption in the total GDP of the country is about 60 percent. ‘Mirai Asset Great Consumer Fund’ has done the work of converting this spending habit into a great investment opportunity. This fund, which was started about one and a half decade ago, has proved that if money is invested on a strong theme for the long term, then even small savings can turn into a huge capital.
Savings of ₹10,000 touched the figure of ₹63 lakh
When this fund was launched in March 2011, hardly anyone had accurately predicted such bumper returns. If we look at the figures, this fund has given a compound annual return (CAGR) of about 15.4 percent to investors through Systematic Investment Plan (SIP) since its inception. If a common investor had started depositing Rs 10,000 every month at the time of launch of this fund, today the total value of his investment would have been around Rs 62.9 lakh.
In the last five years, the performance of this fund has been even better, where it has given profits at the rate of about 25 percent (CAGR). Not only SIP, those who invest lump sum money have also benefited greatly. If someone had initially invested only Rs 10,000 in lump sum, then at the compounded return of 15.76 per cent, today that amount would have become more than Rs 88,855.
The secret of profit is hidden in everyday shopping
The success of any fund in the investment market depends on which companies it is investing the money in. The total assets under management (AUM) of Mirae Asset Great Consumer Fund has currently reached close to Rs 4,500 crore. This fund mainly buys its stake in those companies which are directly related to our consumption. These mainly include consumer durables, automobile, retail, telecom and FMCG sectors.
Talking about the current portfolio of the fund, it is dominated by big companies like Mahindra & Mahindra Limited, Maruti Suzuki India, Titan Company Limited and Bharti Airtel. That is, when you buy a car, jewelery or use mobile network, the revenue of these companies indirectly increases, which directly benefits the investors of the fund.
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