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Three 5-star rated mutual funds turn SIP of ₹10,000 to ₹12 lakhs in 5 years

Financial experts usually prefer long-term investment strategies when it comes to equity funds because of the power of composition to build massive wealth over time. The strongest long investment options are equity-focused programs with an equity allocation greater than 65% and are considered investing through SIP if your goal is to fund long-term goals. Compared to hybrid and debt funds, equity funds have a better potential to generate massive wealth, although they are more volatile in the short term. Since a well-diversified equity fund is also more likely to have consistent long-term growth and outperform inflation and the benchmark, here’s an example of 3 equity funds that have a monthly SIP of 10,000 to more than 12 lakhs in 5 years.

Quant Active Fund direct growth

The fund was established on January 1, 2013 and has given it a 5-star rating. On June 30, 2022, Quant Active Fund Direct-Growth had: 2,644.71 crores in assets under management (AUM), and on September 9, 2022, the fund’s NAV was 470.37. The fund is compared to Nifty 500 Multicap 50:25:25 TRI and has an expense ratio of 0.58%, which is lower than other funds in the same category. Since launch, Quant Active Fund Direct-Growth has generated an average annual return of 21.08%, with a 1-year return of 14.10%. If an investor has a monthly SIP of 10,000 in the fund five years ago, it would now have grown to 12.72 lakh since the fund has achieved an annualized SIP return of 30.62% for the past five years.

As the fund has delivered an annualized SIP return of 40.78% over the past three years, a monthly SIP of 10,000 that started three years ago would be worth it now 6.36 lakh. The fund’s last year SIP return of 9.04% far outperformed the benchmark’s performance of 6.56% at the time. The figures above show how the fund has doubled investors’ assets every two years. The fund’s sector holdings include the services, consumer goods, financial, chemicals, metals and mining sectors. ITC Ltd., State Bank of India, Adani Ports and Special Economic Zone Ltd., Vedanta Ltd. and Larsen & Toubro Ltd. make up the fund’s top 5 holdings. In domestic equities, the fund has 98.57% exposure, of which 48.18% are large cap stocks, 25.16% mid cap stocks and 25.23% small cap stocks.

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Quant Mid Cap Fund Direct Growth

The fund was launched on January 1, 2013 and Value Research and Morningstar have given it a 5-star rating. As of June 30, 2022, Quant Mid Cap Fund Direct-Growth had: 621 crores of assets under management (AUM), and on September 9, 2022, the fund’s NAV was 145.3. The fund’s expense ratio is 0.63% and the Nifty Midcap 150 TRI index acts as a benchmark. Since its launch, Quant Mid Cap Fund Direct-Growth has achieved an average annual return of 17.46%, of which 23.56% over the past year. A monthly SIP of 10,000 that started 5 years ago would now have grown to 12.83 Lakh due to the fund’s annualized SIP return of 30.97% over the past 5 years.

A monthly SIP of 10,000 that started three years ago would now have grown to 6.59 Lakh due to the fund’s annual SIP return of 43.52% over the past three years. Compared to the performance of the benchmark index, which was then 11.17%, the fund’s absolute return over the past year was 13.77%. The services, finance, automotive, consumer staples and capital goods sectors are authorized for the fund. Patanjali Foods Ltd., Container Corpn. Of India Ltd., Indian Hotels Co. Ltd., Canara Bank and Bank of Baroda are the fund’s top 5 holdings. The fund invests 98.62% of its assets in domestic stocks, of which 69.79% are mid-cap companies and 28.83% are large-cap stocks.

PGIM India Midcap Opportunities Fund Direct Growth

The fund was launched on December 2, 2013 and both Value Research and Morningstar have given it a 5-star rating. On June 30, 2022, PGIM India Midcap Opportunities Fund Direct-Growth had assets under management (AUM) with 6614.47 crores, and on September 9, 2022, the NAV of the fund was 51.51. The fund’s expense ratio is 0.42% and the Nifty Midcap 150 TRI index serves as a benchmark. Since its launch, PGIM India Midcap Opportunities Fund Direct-Growth has generated an average return of 20.54% per annum, with a 1-year return of 12.05%. The fund has delivered an annualized SIP return of 31.40% over the past five years, meaning a monthly SIP of 10,000 that started then would be worth it now 12.96 lakh.

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As the fund has delivered an annualized SIP return of 43.10% over the past three years, a monthly SIP of 10,000 that started at that time would now have grown to 6.55 Lakh. The fund’s absolute return over the past year of 9.93% far outperformed the benchmark index’s performance at the time, which was 11.17%. ABB India Ltd., Timken India Ltd., TVS Motor Co. Ltd., HDFC Bank Ltd. and Dalmia Bharat Ltd. make up the fund’s top 5 holdings. The fund has sector allocations in the capital goods, finance, automotive, materials and services sectors. The fund invests 94.41% of its assets in domestic stocks, of which 10.15% in large-cap stocks, 66.48% in mid-cap stocks, 17.78% in small-cap stocks and 5.31% in debt securities.

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