Markets
BSE See NSE See 59,015.89
-125.27 (-0.21%)

SIP: Funds that turned 6 lakh into more than 15 lakh in last five years

Shashikant Singh
Rate this article:
3.3
SIP: Funds that turned 6 lakh into more than 15 lakh in last five years

Mutual fund houses in India offer innovative ways of investment to an investor wherein, he can automate his investment to meet his needs from the investment. Investors may choose to invest periodically rather than in a lump sum to benefit from volatility in prices. Systematic investment plans (SIP) is the facility through which he can achieve both, objectives of automating his investment as well as rupee cost averaging.   

In a systematic investment plan, investors commit to investing a fixed sum of money at regular intervals over a period of time in a mutual fund scheme. It enables investors to build a corpus over time even with small sums invested. Through SIP, investment is made at different prices over the term chosen and this allows investors to benefit from the volatility in the market. Since the same amount is being invested in each installment, investors buy more units when the price is low and fewer units when the price is high. Over time, the average cost of acquisition per unit comes down. This is called rupee cost averaging and it’s the primary advantage that SIPs provide investors.  

The following table shows the average SIP returns generated by funds in the last five years from different categories. Funds from the IT category are clearly the winner and have generated the best SIP returns for their investors.   

  

Sector  

No. of funds  

Average of 5-year SIP returns (per cent)  

Max of 5-year SIP returns (per cent)  

Min of 5-year SIP returns (per cent) 

IT  

5  

36.05  

39.4  

30.28  

Small-cap  

14  

25.72  

38.98  

19.56  

Pharma  

4  

25.37  

28.2  

23.29  

Energy  

2  

24.08  

27.04  

21.11  

Mid-cap  

21  

21.73  

30.29  

15.19  

Multi-cap  

7  

20.58  

31.89  

16.09  

Consumption  

9  

19.12  

31.51  

12.86  

Large & Mid-cap  

22  

18.75  

24.41  

14.59  

DIV Y  

5  

18.27  

20.78  

16.26  

Flexi-cap  

37  

17.99  

26.97  

10.49  

ELSS  

33  

17.94  

33.91  

11.36  

INFRA  

20  

17.71  

30.1  

9.54  

Value  

15  

17.57  

21.78  

12.76  

T-ESG  

1  

17.40  

17.4  

17.4  

THEMATIC  

10  

16.94  

25.72  

8.51  

Large-cap  

51  

16.29  

21.31  

10.64  

International  

30  

15.86  

30.91  

3.46  

MNC  

3  

15.29  

19.22  

12.93  

BANK  

11  

14.35  

18.23  

9.24  

PSU  

2  

11.20  

14.72  

7.67  

  

The following are the funds that have generated the best five-year returns in the last five years. Every monthly investment of Rs 10,000 would have turned your investment value to more than Rs 15 lakh. This means that your investment of Rs 6 lakh (5*12*10,000) would have more than doubled.  

   

Fund name  

5-year SIP returns (per cent)  

SIP value (Rs lakh)  

ICICI Prudential Technology Fund - Direct Plan  

39.4  

18.11  

Quant Small Cap Fund - Direct Plan  

39.0  

17.88  

Tata Digital India Fund - Direct Plan  

38.2  

17.43  

Aditya Birla Sun Life Digital India Fund - Direct Plan  

37.9  

17.28  

SBI Technology Opportunities Fund - Direct Plan  

34.5  

15.59  

  

Note: These are historic returns and may not continue in the future and hence, do not take it as an investment advisory.  

Previous Article T20 breakout stocks: Best swing trading stocks to keep an eye on!
Next Article Keep your eyes glued on these seven stocks on Friday!
Please login or register to post comments.

Get A Call From Industry Experts

Send Otp

   I authorize DSIJ Pvt Ltd to contact me. This will override registry on the NDNC.

DSIJ MINDSHARE

Do you know these auto and auto ancillaries stocks more than doubled in 2021 alone?

After having traded negative in a three month period the BSE Auto index is up by over 3 per cent in one month and about 2.6 per cent in past one week alone.

Yogesh Supekar / Article rating: 3.8
In 2021 we find that several stocks from the auto and especially auto ancillary sector have more than doubled with the top gainer jumping higher...

Multibagger Alert: These Finance Sector Stocks have gained up to a whopping 3330.77 per cent in 2021 alone!

Some of the financials that outperformed the markets have turned out to be multibaggers with the top gainer Flomic Global Logistics jumping higher by a whopping 3330.77 per cent in 2021 alone.

Yogesh Supekar / Article rating: 3.2
The leveraged businesses considered most risky, however are seen making a strong comeback with Nifty Bank trading at all time highs. It is in fact...
1345Last

Knowledge

1345Last