mutual fund JM Value Fund is a great example of how it is beneficial to stay invested for a long time. This fund has consistently given excellent returns in the last 27 years. It is important for investors to understand that great returns from an MF scheme can be availed only if you stay invested for a long period of time. Investing for a long period gives you the benefit of compounding interest.
This fund was launched in 1997
JM Value Fund was launched on June 2, 1997. Since the inception of the scheme, the mutual fund has given a compound annual growth rate (CAGR) return of 17.78 per cent, which means the investment would have grown 8.78 times during this period.
| Year | increased to ₹ 1 lakh | Return (%) |
| 1 | ₹1.54 lakh | 54.29 |
| 3 | ₹2.13 lakh | 28.77 |
| 5 | ₹3.34 lakh | 27.3 |
| 10 | ₹5.64 lakh | 18.89 |
| from the beginning | ₹87.83 lakh | 17.78 |
This is how investors became rich
As can be seen in the table above, if one had invested ₹1 lakh in JM Value Fund a year ago, the investment would have grown to ₹1.54 lakh. That means a return of 54.29 percent. If the same ₹1 lakh had been invested three years ago, it would have grown to ₹2.13 lakh in a period of three years. If you had remained invested for half a decade, the same investment of Rs 1 lakh would have increased to Rs 3.34 lakh. In a period of 10 years, an investment of Rs 1 lakh would have increased to Rs 5.64 lakh, i.e. a return of 18.89 percent. And if you had invested Rs 1 lakh at the time of the launch of the scheme in 1997, your investment would have grown to Rs 87.83 lakh by September 30, 2024, giving you an annual return of 17.78 percent.
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