Rs 20,000 Invested In This Mutual fund Scheme Turned To Rs 85,000 In 3-years

A lumpsum investment of Rs 20,000 in the mutual fund scheme of ICICI Prudential Commodities Fund, Direct, Growth plan would have translated to Rs 85,235 in a short span of 3-years. This has resulted in an absolute whopping returns of around 325%. The compounded annual growth rate of returns is 59.74%.

Of course the returns have largely to do with how the markets have behaved in the last 3-years, given that 3-years ago there was lockdown across India and markets had plunged. So, the sharp gains that we have seen has largely to do with markets rallying post covid resulting in solid gains for all mutual fund holders. However, we must admit that ICICI Prudential Commodities Fund, Direct, Growth plan has performed much better than peers.

SIP amounts and other details of ICICI Prudential Commodities Fund, Direct, Growth plan

One can start an SIP in ICICI Prudential Commodities Fund, Direct, Growth plan with small amounts. We would suggest that you invest largely through SIPs and avoid lumpsum investment.

Also, it is a good idea to look for a tenure of 3-5 years, if you wish to have superior returns from mutual funds. ICICI Technologies Fund, Direct plan Growth has invested in the stocks of Tata Steel, JSW Steel, Ultratech Cement, Jindal Stainless and Grasim Industries.

As can be seen from the portfolio that most of the stock holdings are in commodity stocks like cement and steel. The problem is that should a recession be forthcoming in countries like the United States, we could foresee the possibility of commodity prices falling and hence commodity stocks. Therefore, the portfolio too could take a hit and hence the net asset value as well.

Disclaimer

Please note, we have highlighted a mutual fund scheme that has given good returns in the past. We have not suggested any "buy", "sell" or "hold" on the scheme of ICICI Prudential Commodities Fund, Direct, Growth plan. The above article is for information and should not be construed as recommendations. Neither the author nor Greynium Information Technologies Pvt Ltd should be held responsible for losses based on a decision made after reading the article.