Looking for best mutual funds for SIP investment? Check top 10 winners of last 5 years (2024)
SIPs or systematic investment is a preferred way of investing in equity mutual funds for most investors. This method helps investors to invest a particular amount regularly in the market irrespective of the market conditions. It is the easiest and perhaps the only proven way to create wealth over a long period of time.
ETMutualFunds did some data crunching and found top 10 mutual funds that offered good returns in a five year horizon. These 10 schemes offered returns ranging between 33.22%-48.52% in five years.
A monthly SIP of Rs 10,000 in Quant Small Cap Fund would have grown to Rs 19.01 lakh in a five year period with a XIRR of 48.52%. Quant Mid Cap Fund offered 37.46%. A monthly SIP of Rs 10,000 would have now been Rs 14.81 lakh.
Nippon India Small Cap Fund, the largest scheme in the small cap category based on assets managed, would have made a monthly SIP of Rs 10,000 to Rs 14.79 lakh. The next two schemes were from Quant Mutual Fund. Quant Flexi Cap Fund and Quant ELSS Tax Saver Fund offered 36.51% and 35.88% respectively.
Around 198 equity mutual fund schemes completed five years of existence in the market. These top 10 schemes were from small cap, mid cap, flexi cap, ELSS, contra fund categories.
For the analysis, we considered equity categories like large cap, mid cap, small cap, large & mid cap, focused fund, ELSS, multi cap, flexi cap, value, and contra fund. We calculated the XIRR returns for the investments made through SIP. Regular and growth option schemes were considered for the analysis. The XIRR returns for five years were calculated for the period starting from February 22, 2019 to February 22, 2024.
Note, the above exercise is not a recommendation. The purpose of the exercise was to find the top 10 equity schemes for SIP in 5 years. One should not make investment or redemption decisions based on the above exercise.
One should always consider risk appetite, investment horizon and goal before making investment decisions. Past performance of the scheme does not guarantee future performance.
What if I invest Rs. 3,000 a month in SIP for 5 years? If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.
Quant Small Cap Fund, Regular Plan (45.46 per cent in 3 years) This has also emerged as one of the biggest gainers in the mutual fund market with a return of 40.34 per cent in one year, 19.88 per cent in two years, and 45.46 per cent in three years on an annualised basis.
For example, if an individual plan to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus.
Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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