This mutual fund has turned ₹10,000 monthly SIP into ₹11.73 lakh in 6 years

Baroda BNP Paribas Mutual Fund announced that its Balanced Advantage Fund (BAF) has achieved a significant milestone. The fund, which completed six years of operation in November 2024, now manages over ₹4,000 crore in assets under management (AUM).

Investors who initiated a monthly Systematic investment Plan (SIP) of ₹10,000 in the fund since its inception in 2018 would have seen their investment of ₹7.20 lakh grow to ₹11.73 lakh by October 2024.

This translates to a compounded annual growth rate (CAGR) of 16.12%, outperforming the benchmark Nifty 50 Hybrid Composite Debt 50:50 Index, which delivered a 12.62% CAGR over the same period.

For shorter periods, the fund has also maintained its lead:

1 year: SIP returns at 15.79% CAGR compared to the benchmark’s 12.37%.

3 years: SIP CAGR of 17.10% against 12.55% for the benchmark.

5 years: SIP CAGR of 16.41%, while the benchmark stood at 12.75%.

For lump-sum investors, the fund's annualised returns since inception stand at 15.15%, well above the benchmark’s 12.58%.

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Over shorter horizons, the one-year return is 26.45%, nearly 8% higher than the benchmark.

The fund employs a proprietary model to dynamically allocate assets between equity and fixed income, leveraging market volatility. It also uses derivatives to capitalise on price differentials in cash and futures markets, the mutual fund house said.

The equity portfolio spans large-cap, mid-cap, and small-cap stocks for diversification. Meanwhile, debt investments focus on high-credit-quality instruments to ensure safety and stability.