Top 5 Mutual Funds for SIP – Best Performing SIPs in India
September 2, 2024 Mutual Fund
Systematic Investment Plans (SIPs) in mutual funds have witnessed a remarkable surge in popularity in India over the past few years. SIP inflows have consistently breached new highs in recent years; the amount collected through SIPs touched Rs 23,332 crore in July 2024 compared to Rs 15,245 crore in July 2023, indicating strong investor confidence.
The number of SIP accounts has also been on the rise. SIP folios stood at 9.34 crore as of July 2024, up from 6.81 crore as of July 2023, reflecting increasing participation from a diverse range of investors.
Equity funds have been the primary driver of SIP growth, as investors seek to capitalize on the long-term potential of the Indian stock market.
SIPs have gained popularity due to the following factors:
Invest with a Small Amount: You don’t need to invest a large amount in one go as SIPs allow investors to start with small, regular investments, making them accessible even to people with limited earnings.
Rupee-Cost Averaging: Since you invest a fixed amount regularly regardless of the market conditions, SIPs help investors buy more units of a fund when prices are low and fewer units when prices are high, potentially reducing the overall cost of investment over the long run.
Disciplined Investing: SIPs encourage disciplined investing habits, as investors commit to making regular fixed contributions at specified time intervals.
Long-Term Wealth Creation: SIPs are a simple and convenient method for investing in mutual funds, making them suitable for planning various long-term goals such as buying a house, retirement, children’s future, etc. and benefit from the power of compounding of wealth.
Increased Awareness: Growing awareness of mutual funds, particularly via the ‘Mutual Fund Sahi Hai’ campaign, and the benefits of SIPs among the general public has also contributed to their popularity.
Watch this video to find out the key benefits of starting an SIP:
In this article, find out the best performing SIP across some of the popular sub-categories of equity mutual funds. These schemes have been selected based on 5-year performance:
Top Performing SIP #1: Quant Small Cap Fund
Launched in October 1996, Quant Small Cap Fund is a momentum-driven scheme in the Small Cap Fund category that has recorded extraordinary performance over the last few years and has registered category-topping returns across time frames. The fund adopts a quantitative approach to select high-growth potential stocks based on the relevant market, industry, sector and economic parameters. This quantitative approach is based on the fund house’s proprietary VLRT framework, which assesses stocks on their valuations, liquidity, risk, and timing.
In the last five years, Quant Small Cap Fund grew at an XIRR of 51% compared to 38.2% XIRR in its benchmark Nifty Smallcap 250 – TRI.
Performance of Quant Small Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Quant Small Cap Fund | 6,00,000 | 20,28,754 | 51.01 | Nifty Smallcap 250 – TRI | 38.19 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of August 29, 2024
Returns are XIRR in percentageMonthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Quant Small Cap Fund’s current top holdings include Reliance Industries, JIO Financial Services, Aegis Logistics, Aditya Birla Fashion and Retail, and HFCL. Sector wise, it currently has higher exposure in Healthcare, Petroleum, Finance, Consumption, and Logistics, among others.
Top Performing SIP #2: Motilal Oswal Midcap Fund
Launched in February 2014, Motilal Oswal Mid Cap Fund is a growth-oriented scheme that follows an active investment style invest. It aims to invest in mid-cap companies with a strong competitive position or economic moat, good business prospects, and run by a competent management team. In the past, the fund has occasionally outperformed the benchmark and category average during various market phases and has emerged as a top performer in the category over long-term time frames.
In the last five years, Motilal Oswal Mid Cap Fund grew at an XIRR of 42.3% compared to 35.5% XIRR in its benchmark Nifty Smallcap 250 – TRI.
Performance of Motilal Oswal Midcap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Motilal Oswal Midcap Fund | 6,00,000 | 16,68,683 | 42.31 | Nifty Midcap 150 – TRI | 35.45 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of August 29, 2024
Returns are XIRR in percentageMonthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Motilal Oswal Midcap Fund’s current top holdings comprise Polycab India, Persistent Systems, Kalyan Jewellers India, JIO Financial Services, and Coforge. In terms of sector, the fund’s portfolio is skewed towards Infotech, followed by Auto & Ancillaries, Engineering, Consumer Durables, and Finance, among others.
Top Performing SIP #3: Quant Flexi Cap Fund
Launched in September 2008, Quant Flexi Cap Fund is a Flexi Cap Fund that follows an active investment strategy to identify high-growth stocks and dynamically shifts the portfolio mix across large-cap, mid-cap, and small-cap companies. Over the past few years, this fund has demonstrated remarkable growth, consistently outperforming its benchmark and delivering substantial alpha for its investors. Its proactive approach to timely investments in attractive opportunities has proven highly effective, propelling it to surpass both benchmark and category average across time frames.
In the last five years, Quant Flexi Cap Fund grew at an XIRR of 39% compared to 25.6% XIRR in its benchmark Nifty 500 – TRI.
Performance of Quant Flexi Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Quant Flexi Cap Fund | 6,00,000 | 15,46,693 | 39.00 | NIFTY 500 – TRI | 25.62 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of August 29, 2024
Returns are XIRR in percentageMonthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Its top stock holding comprises Reliance Industries, ITC, HDFC Bank, Samvardhana Motherson International, and Adani Power. Sector wise, the fund prefers Consumption, Power, Petroleum, Bank, and Pharma, among others.
Top Performing SIP #4: Quant Large & Midcap Fund
Launched in December 2006, Quant Large & Midcap Fund is a growth-oriented Large & Mid Cap Fund that has demonstrated outstanding performance in recent years and rewarded investors with superior gains, albeit at a higher risk level. It follows an active portfolio churn strategy to timely identify multibagger ideas, predominantly in the large-cap and mid-cap segments. Its superior performance in recent years has boosted its long-term returns as well and it now stands among the category toppers across time frames.
In the last five years, Quant Large & Midcap Fund grew at an XIRR of 35.3% compared to 28.9% XIRR in its benchmark Nifty LargeMidcap 250 – TRI.
Performance of Quant Large & Midcap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Quant Large & Mid Cap Fund | 6,00,000 | 14,19,023 | 35.27 | NIFTY LargeMidcap 250 – TRI | 28.94 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of August 29, 2024
Returns are XIRR in percentageMonthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
The fund is currently bullish on Reliance Industries, ITC, Aurobindo Pharma, Samvardhana Motherson International, and IRB Infrastructure Developers, among others. Its portfolio is skewed towards the Consumption sector, followed by Pharma, Petroleum, Auto Ancillaries, and Finance, among others.
Top Performing SIP #5: Nippon India Large Cap Fund
Launched in August 2007, Nippon India Large Cap Fund is a Large Cap Mutual Fund that has significantly surpassed the benchmark, showcasing an impressive performance that stands out in comparison to many of its peers struggling to generate alpha. It aims to own dominant businesses at reasonable valuations to reduce the risks and generate alpha. The fund emphasises companies which are leaders or potential leaders, with well-established business models, sustainable & growing free cash flows, and have high RoE or potentially high RoE.
In the last five years, Nippon India Large Cap Fund grew at an XIRR of 28.9% compared to 23.2% XIRR in its benchmark Nifty 500 – TRI.
Performance of Nippon India Large Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Nippon India Large Cap Fund | 6,00,000 | 12,22,728 | 28.93 | BSE 100 – TRI | 23.19 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of August 29, 2024
Returns are XIRR in percentageMonthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
The fund’s top stock holdings include index heavyweights such as HDFC Bank, Reliance Industries, ITC, ICICI Bank, and Infosys. Its sectoral exposure is inclined towards Banking & Finance, followed by Infotech, Consumption, Petroleum, and Power, among others.
In Conclusion:
SIPs have emerged as a preferred choice for investors looking to invest in equity mutual funds for wealth creation. However, one should avoid selecting schemes based on past returns as the past performance is not an indicator for future returns.
It is important to note that different sub-categories of equity mutual funds vary in terms of risk-reward matrix. Therefore, it would not be fair to compare mutual fund returns of a scheme with that of a scheme belonging to another category.
When selecting the schemes for SIP, ensure that you pick those that align with your financial goals and risk tolerance. Ideally, one should invest in suitable schemes that have consistently performed well compared to the benchmark and peers and also fare well in terms of risk-adjusted returns.
As far as possible opt for the Direct Plans to SIP in equity mutual fund to earn better returns. The lower expense ratio of a Direct Plan helps enhance the portfolio returns than that of the Regular plan.
Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.
This article first appeared on PersonalFN here
