Know about equity MFs which tripled your SIP investments
No denying the fact that those, who keep patience with their investments, get rewarded. Therefore, those, who are religiously following their financial plan and never missed a single systematic investment plan (SIP) in the past 10 years, have been handsomely rewarded. This was despite a lot of ups & downs in the market in the past 10 years. Recently, S&P BSE Sensex and Nifty 50 crossed 51,000 and 15,000 levels, respectively. Further, Budget 2021 didn’t negatively surprise the market like it did in the year 2020. Moreover, the beaten-down sectors such as energy, infrastructure, metals, automobiles, etc are now witnessing interest from investors. This has led to returns on equity mutual fund schemes look further attractive. In this article, we would list three equity mutual funds that tripled investors’ wealth, who invested via SIP.
Mirae Asset Emerging Bluechip Fund
The investment objective of this scheme is to generate income and capital appreciation by predominantly investing in Indian equities and equity-related securities of large-cap and mid-cap companies. Let us look at its 10-year SIP performance.
Source: Rupeevest
Say, 10 years back, if you had invested Rs 5,000 every month via SIP in this scheme, then your total investment of Rs 6 lakh would have turned Rs 20.79 lakh, which is a compounded annual growth rate (CAGR) of Rs 23.47 per cent.
ICICI Prudential Technology Fund
This scheme seeks to generate long-term capital appreciation by creating a portfolio that is invested in the equity and equity-related securities of technology and technology-dependent companies. Below is the 10-year SIP performance of the scheme.
Source: Rupeevest
If you had initiated Rs 5,000 monthly SIP in this fund 10 years ago, then today your Rs 6 lakh investment would have been worth Rs 19.37 lakh, which generated a CAGR of 22.16 per cent.
SBI Small Cap Fund
The investment objective of this scheme is to provide investors with opportunities for long-term growth in the capital along with the liquidity by predominantly investing in a well-diversified basket of equity stocks of small-cap companies. Here is its 10-year SIP performance.
If you had invested Rs 5,000 in this fund 10 years back via SIP route, then your Rs 6 lakh investment would have accumulated to be Rs 20.55 lakh, generating a CAGR of 23.25 per cent.
All in all, we can say that patience is the key to success. Invest in funds which has a consistent performance history and also, which has been able to manage the downside risk. It should have also gone through at least two bull and bear cycles. Once, you have selected the fund, let the fund do the magic for you. However, reviewing your investments annually is advisable.