Mutual Fund: Rating is also a measure in choosing a mutual fund scheme. Higher rating means that the fundamentals of that scheme are better and it is likely to give good returns to the investors in future.
Mutual Fund: Compounding has a tremendous advantage when investing in mutual fund schemes from a long-term perspective. Especially talking about Equity Mutual Funds, in spite of the volatility in the market, investors have got good returns. If you have good funds in your portfolio, then you have obviously made good returns in them. Rating is also a parameter in choosing a mutual fund scheme. Higher rating means that the fundamentals of that scheme are better and it is likely to give good returns to the investors in future. We are talking about the performance of 5 schemes with a 5 star rating, in which a monthly SIP of Rs 10,000 has created a fund of up to Rs 7.29 lakh in 3 years.
Quant Infrastructure Fund
₹10,000 Monthly SIP in 3 Years Total Corpus: ₹7.29 Lakh
Return: 51.74% Annualized Average Return
Minimum SIP: ₹1,000
Asset: ₹621 Crore (31 July 2022)
Expense Ratio: 0.64% (31 July 2022)
Canara Robeco Small Cap Fund
₹10,000 Monthly SIP in 3 Years Total Corpus: ₹6.84 Lakh
Return: 46.52% Annualized Average Return
Minimum SIP: ₹1,000
Asset: ₹3,074 Crore (31 July 2022)
Expense Ratio: 0.42% (31 July 2022)
Quant Tax Plan
₹10,000 Monthly SIP in 3 Years Total Corpus: ₹6.74 Lakh
Return: 45.46% Annualized Average Return
Minimum SIP: ₹500
Asset: ₹1,584 Crore (31 July 2022)
Expense Ratio: 0.57% (31 July 2022)
PGIM India Midcap Opportunities Fund
₹10,000 Monthly SIP in 3 Years Total Corpus: ₹6.49 Lakh
Return: 42.34% Annualized Average Return
Minimum SIP: ₹1,000
Asset: ₹6,023 Crore (31 July 2022)
Expense Ratio: 0.42% (31 July 2022)
Bank of India Small Cap Fund
₹10,000 Monthly SIP in 3 Years Total Corpus: ₹6.44 Lakh
Return: 41.73% Annualized Average Return
Minimum SIP: ₹1,000
Asset: ₹333 Crore (31 July 2022)
Expense Ratio: 1.18% (31 July 2022)
(Source: Value Research, 5 Star Rating Value Research)
Increasing craze of SIP
According to the data of Association of Mutual Funds in India (Amfi), an investment of Rs 12,140 crore came in July 2022 through Systematic Investment Plans (SIPs). In June, this figure was Rs 12,276 crore. Apart from this, the number of SIP accounts reached an all-time high of 5.61 crores in July. According to Amfi, almost all the categories of mutual funds except hybrid funds have seen positive flows. It is clear from this that the economic recovery will be fast in the next few quarters.
According to Deepak Jain, Head (Sales) Edelweiss Mutual Fund, retail investors are of the view that systematic or disciplined investing is more profitable and less volatile in the long run. That’s why they are preferring SIPs for regular investment. Investors’ focus is not just on returns but on risk-adjusted returns. SIP is a better option for this.
(Disclaimer: The performance information given here is mutual fund schemes. This is not an investment advice. Investing in mutual funds is subject to market risks. Please consult your advisor before investing.)
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