Roller coaster ride to 2 Crore MF portfolio

Recently, one of my clients' mutual fund portfolio has crossed the 2 crore mark.

I met him in 2016 in an 'Investor Education Program' that I delivered at a play school in Bangalore. An year later in 2017, he contacted me to start his mutual fund investments. He broke his bank Fixed Deposits and invested in Equity mutual funds. Whether this was a good decision or not, you will understand in this write-up.

He started his investments during a tough phase of the stock market. After a stupendous rise from 2014 to 2017, stock markets crashed and took a breather from 2018 to 2020 first half. The client was very patient with his investments during the bad market phase and waited for the portfolio to play out well in the long-term. Below table captures his investing journey.

Date	Invested amount as on date	Market value as on date	Profit as on date
21-Jul-17	14,00,000	13,97,228	-2,772
25-Jul-17	14,00,000	14,00,000	0
01-Aug-17	40,00,000	40,25,415	25,415
01-Oct-17	40,00,000	40,11,673	11,673
01-Jan-18	40,00,000	43,05,043	3,05,043
01-Apr-18	40,00,000	41,29,688	1,29,688
01-Jul-18	49,76,709	50,87,978	1,11,269
01-Oct-18	49,76,709	51,28,066	1,51,357
01-Jan-19	49,76,709	51,53,968	1,77,259
01-Apr-19	49,76,709	53,78,203	4,01,494
01-Jul-19	49,76,709	54,13,134	4,36,425
01-Oct-19	49,76,709	52,10,548	2,33,839
01-Jan-20	49,76,709	54,69,850	4,93,141
01-Apr-20	49,76,709	41,99,998	-7,76,711
01-Jul-20	49,76,709	49,66,132	-10,577
01-Oct-20	49,76,709	51,72,925	1,96,216
01-Jan-21	49,76,709	55,09,642	5,32,933
01-Apr-21	49,76,709	62,18,673	12,41,964
01-Jul-21	49,76,709	72,20,992	22,44,283
01-Oct-21	88,26,516	1,03,81,257	15,54,741
01-Jan-22	91,72,346	1,08,70,020	16,97,674
01-Apr-22	1,00,14,145	1,13,73,025	13,58,880
01-Jul-22	1,07,11,359	1,18,91,848	11,80,489
01-Oct-22	1,07,01,819	1,22,04,820	15,03,001
01-Jan-23	1,07,11,359	1,33,97,838	26,86,479
01-Apr-23	1,07,11,359	1,38,35,855	31,24,496
01-Jul-23	1,07,11,359	1,38,77,885	31,66,526
01-Oct-23	1,07,11,359	1,44,09,127	36,97,768
01-Jan-24	1,07,11,359	1,70,38,147	63,26,788
01-Apr-24	1,07,11,359	1,79,20,591	72,09,232
01-Jul-24	1,07,11,359	1,94,12,351	87,00,992
01-Aug-24	1,07,11,359	2,02,97,637	95,86,278
02-Sep-24	1,07,11,359	2,04,80,307	97,68,948

Client’s patience paid off well. Client is very happy crossing the 2 Crore mark. His portfolio has generated an XIRR of 17.8%, which is definitely better than FD interest rate. This is just the beginning! He will cross many more milestones in the future.

XIRR: Internal Rate of Return. In simple terms, XIRR is the weighted average annualized return of all the investments done over a period of time.

Disclaimer:

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.