Check Now, Stock SIP in which IT major stock would have been the best option!

There are various ways to beat markets and volatility at the same time. Regular investing and systematic investing have always been suggested by the experts as a sound way to beat the market volatility. Beating market volatility is fine but does it provide high returns (market beating) as well?

If we check the data for the IT major stocks such as Wipro, Infosys, Tech Mahindra and TCS we find that returns generated via stock SIP is much better than the returns generated by passive investing i.e by investing in Sensex or Nifty or even NIFTY IT index.

The returns exceed that of ICICI Prudential Technology Fund as well, which is amongst the top performing mutual fund in the last five years.

ICICI Prudential Technology fund has managed to deliver close to 30 per cent returns on an annualised basis in the past five years while TCS (stock SIP) is the only laggard not able to surpass the returns generated by the top performing IT sectoral fund i.e ICICI Prudential Technology Fund.

The best returns as indicated in the table below are delivered by Wipro – 38.78 per cent on an annualised basis in the past five years.

The below table explains how a Stock SIP of Rs 20,000 in each of the 4 major IT stocks would have performed in the past five years: