Mutual Funds: Before investing in a mutual fund scheme, investors are supposed to evaluate its past returns. Past returns do not guarantee future returns, but they set the tone for a scheme’s future performance.
Aside from past returns, investors can evaluate a mutual fund’s future potential based on a host of other factors, such as the fund manager’s performance, the reputation of the fund house, the category of the scheme, and overall macroeconomic factors.
Here, we evaluate the past returns of ICICI Prudential Mid Cap Mutual Fund to see how the magic of compounding works. This means if someone had invested a small amount in the early days, it would have grown considerably over the years.
This mid-cap fund was launched on 28 October 2004. Its assets under management (AUM) stand at ₹6,654 crore.
Performance over past 20 years
Sample this: If an investor had invested ₹1 lakh in this scheme one year ago, the investment would have been more or less the same because the one-year return is a humble 1 per cent. If someone had invested the same amount three years ago, the investment would have grown to ₹1.78 lakh, delivering an annualised return of 21.45 per cent.
In five years, the investment of ₹1 lakh would have grown to ₹3.15 lakh, delivering an annualised return of 25.81 per cent.
In 10 years, the investment of ₹1 lakh would have grown to ₹4.26 lakh, delivering a return of 15.60 per cent per annum.
(Source: AMFI; returns as on 3 Sept 2025)
Finally, if someone had invested ₹1 lakh at the time of the scheme’s launch in October 2004, the investment would have swelled to ₹29.50 lakh, thus delivering a return of 17.64 per cent per annum.
Notably, historical returns do not guarantee future returns. Just because a scheme has given good returns in the past does not mean it will deliver the same return in the future.
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