Power of compounding: How ₹10,000 monthly SIP grew to ₹1.6 crore in 25 years

What if you had simply set aside ₹10,000 every month starting the millennium without timing the market and without making any lump sum investments? More than Rs 1 crore, investors of Aditya Birla Sun Life Balanced Advantage Fund would say. 

According to the asset management company, a monthly SIP of ₹10,000 that began in April 2000 would have quietly grown to over ₹1.6 crore by April 2025. The total investment of ₹29.9 lakh over this period delivered a compounded annual growth rate (CAGR) of 11.7%, showcasing the power of disciplined investing and the long-term wealth creation potential of mutual funds.

A fund built for balance and consistency

Launched on April 25, 2000, the Balanced Advantage Fund was designed for investors who wanted the upside of equities, but with reduced volatility. The fund dynamically adjusts its allocation between equity and debt based on market conditions. This strategy allows it to lower equity exposure during overheated markets and increase it when valuations are attractive, aiming for smoother returns across cycles.

Historically, this approach has helped the fund offer lower drawdowns and faster recoveries compared to broader equity indices. From 2015 onwards, it delivered around 80% of the Nifty 50’s returns, while operating with an average net equity exposure of just 52% and 66% of the Nifty's volatility. Notably, over rolling 3-year periods in the past nine years, the fund delivered over 8% returns more than 86% of the time.

A. Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC Ltd, said, “The 25-year journey of Aditya Birla Sun Life Balanced Advantage Fund is not just a performance milestone, it is a testament to the dedication of our team and the enduring confidence of our investors. Our endeavour is to provide peace of mind by dynamically adjusting equity and fixed income exposure to aim for reasonable returns with lower volatility.”

The fund is managed by Harish Krishnan, Lovelish Solanki, and Mohit Sharma, and had over ₹7,500 crore in assets under management as of April 30, 2025.

Whether you are new to investing or looking for a more stable long-term vehicle, this 25-year SIP story proves that staying invested with discipline, especially in a well-managed balanced fund, can quietly build serious wealth.