5 SIPs that made good fortune for equity mutual fund investors

Systematic Investment Plans (SIPs) have become synonymous with mutual funds, particularly equity mutual funds. These plans allow investors to invest a certain sum regularly, usually at the beginning of each month, which helps develop a financial discipline and avoid market timing.

Despite market volatility, SIP investments have proven to be profitable for investors in the last year, with some equity mutual fund schemes offering returns above 20%. However, it is important to consider the performance of equity schemes over a longer period before making investment decisions.

Nippon India Large Cap Fund

One of the best SIP plans for the next five years is the Nippon India Large Cap Fund. This fund is a well-established large cap fund that has shown promising returns over the years. According to the data, the fund has delivered a 3-year return of 30.11%, which is quite impressive. It has also managed to maintain a substantial fund size of INR 14,171Crs, indicating its popularity among investors. The fund primarily focuses on large-cap companies, which are known for their stability and growth potential.

Looking at the past performance of Nippon India Large Cap Fund, it has generated impressive returns. With a CAGR return of 30.64% in the last year and 12% since inception, the fund has consistently outperformed its peers. Overall, Nippon India Large Cap Fund has a strong track record and has delivered attractive returns to its investors.

Also Read: Mutual Fund Investment: 7 things you must know before investing in an SIP

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund is an open-ended equity scheme that aims to generate income and capital appreciation from a diversified portfolio of Indian equities. The fund follows a growth-oriented investment style and primarily invests in large and mid-cap companies. According to the latest data, the fund holds a total of 79 stocks, with a category average of 69.31. The equity holding of the mutual fund is 98.66%, indicating a strong focus on equities. Notably, the fund does not have any holdings in F&O or foreign equities.

When it comes to asset allocation, large cap investments constitute 40.53% of the fund’s holdings, followed by mid cap investments at 28.43%. Small cap investments account for 8.97% of the portfolio, while the remaining 20.75% is classified as “other”. This allocation strategy allows the fund to benefit from both the stability of large-cap companies and the growth potential of mid-cap companies. Furthermore, the fund’s performance has been remarkable, with a return of 19.59% since its launch. The fund has delivered 27.03% and 17.56% CAGR returns over last three and five years, respectively.

Looking ahead, Mirae Asset Emerging Bluechip Fund offers investors the opportunity to invest in a diversified portfolio of Indian equities with a focus on generating income and capital appreciation.

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund is another SIP plan that has made good fortune for equity mutual fund investors. This Fund is a mutual fund that primarily invests in domestic equities, with 93.88% of its investments allocated to this asset class. Within the domestic equities category, the fund has 3.22% invested in Large Cap stocks, 56.61% in Mid Cap stocks, and 18.49% in Small Cap stocks. This allocation indicates a preference for mid-sized companies, which are considered to have significant growth potential.

The fund’s net asset value (NAV) is INR 117.07, and it currently has a total asset under management (AUM) of INR 39,295.71 Crs. The minimum investment amounts for SIP and lump sum investments are INR 1,000 and INR 5,000, respectively. It is important to note that this fund is designed for long-term investors with an investment horizon of 5-7 years.

In terms of returns, the HDFC Mid-Cap Opportunities Fund has given notable performance. Over the past 1 year, it has generated returns of 39.4%. Additionally, over a 15-year period, the fund has achieved an annualized return of 16.6%. These figures demonstrate the fund’s ability to generate consistent and attractive returns over the long term.

In sum, the HDFC Mid-Cap Opportunities Fund offers investors exposure to mid-sized companies with growth opportunities. Fund has produced strong returns in recent years over the long term. As the Indian economy continues to grow and mid-cap companies gain momentum, this fund is well positioned to benefit from their success.

Axis Growth Opportunities Fund

Axis Growth Fund mostly comprises of Lage and Mid cap Stocks with a long-term view of 3-4 years in order to achieve profitable returns. The following mutual fund invest money in majorly domestic equites with 26% investments in mid cap stocks, 18.06 in the large cap & 16.9% in the small caps. 78.1% of the portfolio held by equities including 17.5% is invested in foreign equity holdings. Diversification is the key in the portfolio as similar level weightage has been given to all the categories with mid-caps being highest 26% aiming to achieve substantial returns.

Moving on, total portfolio stands tall with a fund size of 8977.31 crores. CAGR returns generated by the fund are extremely positive where 2-year return stands at 26.74% and return since inception is around 18%. The fund has outperformed its index and is expected generate further profitable returns in the coming times.

Axis Small Cap Fund

For the last SIP we have a fund from the same fund house as before Axis called Axis Small Cap Fund. The following is a high risk and high return fund. It is meant for the investors who have a big risk appetite for generating maximum number of returns as the fund focuses mainly on small caps. Investments made in small caps is around 59.9%, 4.34% in mid cap and less than 1 percent in large caps. 86.8 percent is invested in domestic equities, with a small proportion in debt and government securities under 3% and rest could be considered under small segmentation.

Furthermore, fund size happens to be 13182.54 crores with humungous returns. 5-year CAGR returns are around 37.55% whereas returns since inception are around 23%. Small Caps are risky in nature and, therefore, tend to provide maximum returns. On a general level post covid, low cap index four folded and outperformed all other categories with an unstoppable rally, which is also visible in the fund. Today the low caps have consolidated but again they have all the capabilities to provide similar returns in future, but one must be cautious due to market volatility.

(By Hemant Sood, Founder at Findoc)

Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.