Over the past three years, the stock markets have experienced both positive and negative movements. Such time frame provides a good view to assess how well a mutual fund as performed if an investor has Investment through SIP. This article provides information on 5 mutual fund schemes that yielded highest SIP returns in the last 3 years from 19-Mar-2021 to 18-Mar-2024.
How did we filter these funds that generated highest SIP returns in last 3 years?
We have considered all equity mutual funds excluding sector funds or thematic mutual funds.
Filtered funds that have generated highest SIP returns in the last 3 years.
These funds have generated 3 Year Annualised SIP returns of 32.6% to 43.9%.
While this article would details about highest SIP returns, investors also need to check in case they are investing in 5 Worst Performing Mutual Funds in the last 10 years article too.
5 Mutual Funds with Highest SIP Returns in the last 3 years
Here is the list of Top Performing Mutual Funds in the last 3 years that generated over 32% SIP returns (returns are annualised).
#1 – ICICI Prudential BHARAT 22 FOF – 3 Year SIP Returns – 43.9%
#2 – Quant Small Cap Fund – 3 Year SIP Returns – 36.3%
#3 – Quant Mid Cap Fund – 3 Year SIP Returns – 36.2%
#4 – Motilal Oswal Midcap Fund – 3 Year SIP Returns – 33.6%
#5 – Quant Large and Mid Cap Fund – 3 Year SIP Returns – 32.6%
Note: ETFs and sector/thematic mutual funds are excluded when filtering these funds.
We have given beta and alpha metrics, hence providing detailed definition for investors to understand them. You can skip this section if you are already aware of them.
Beta – It is a measure of fund’s sensitivity to the market movement. Beta of less than 1 indicate that fund would have lower swing compared to ups and downs of the benchmark. Beta of more than 1 indicate that fund would have wider swings compared to benchmark. Investors should prefer lower beta funds which can have lesser swings compared to benchmark.
Alpha – It is a measure of extra returns provided by the fund compared to the benchmark. Investors should prefer high alpha funds which can generate higher returns. One should use Alpha and Beta together which goes hand in hand when comparing between risk and returns.
Investors can also check 5 Mutual Fund Schemes with 3-Year Returns between 160% to 215%
5 Mutual Funds with Highest SIP Returns in the last 3 years – Investment Objective and Performance Details
Let’s get into more information about these funds.
#1 – ICICI Prudential BHARAT 22 FOF – 3 Year SIP Returns – 43.9%
Investment Objective:
ICICI Prudential BHARAT 22 FOF (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of BHARAT 22 ETF.
Such ETF portfolio would have 18 PSU and 3 private sector firms.
Performance Details
Absolute Returns of the fund
- 1-Year Return: 63.8%
- 2-Year Return: 100.8%
- 3 Year Return: 164.4% (1 Lac would have turned to 2.64 Lacs)
- 5-Year Return: 157.6%
- Since Inception Return: 185%
Annualised Returns of the fund
- 1-Year Return: 63.8%
- 2-Year Annualised Return: 41.6%
- 3-Year Annualised Return: 38.2%
- 5-Year Annualised Return: 20.8%
SIP Returns of the fund (annualised)
- 1-Year: 66.7%
- 2-Year: 52.2%
- 3-Year: 43.7% (10K SIP per month – Investment Rs 3.6 Lakhs and it would have grown to Rs 6.6 Lakhs)
- 5-Year: 35.2%
10K SIP Investment would have turned into
- 1-Year : Investment 1.2 Lakhs and Current value is 1.6 Lakhs
- 2-Year : Investment 2.4 Lakhs and Current value is 3.8 Lakhs
- 3-Year : Investment 3.6 Lakhs and Current value is 6.6 Lakhs
- 5-Year : Investment 6 Lakhs and Current value is 14.15 Lakhs
Our View:
Like we indicated in our earlier article, the underlying ETF was launched in Nov-2017 by Govt of India to divest the stake. There were further follow-on offers came too. This fund has a beta of 0.98 and alpha of 17.6. This fund outperformed due to bull run in PSU stocks in the last 2-3 years. As per article from Moneycontrol, Jefferies (brokerage firm) feels PSU fundamentals are improving and most PSUs have also seen large EPS upgrades. While such funds are good for short term, investors can invest in a diversified mutual fund portfolio for medium to long term.
#2 – Quant Small Cap Fund – 3 Year SIP Returns – 36.3%
Investment Objective:
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Small Cap companies.
Performance Details
Absolute Returns of the Fund
- 1-Year Return: 64.4%
- 2-Year Return: 77.3%
- 3 Year Return: 190.4% (1 Lac would have turned to 2.9 Lacs)
- 5-Year Return: 366.2%
- 10-Year Return: 547%
Annualised Returns of the fund
- 1-Year Return: 64.4%
- 2-Year Annualised Return: 33%
- 3-Year Annualised Return: 42.6%
- 5-Year Annualised Return: 36%
- 10-Year Annualised Return: 20.5%
SIP Returns of the fund (annualised)
- 1-Year: 57.2%
- 2-Year: 45.4%
- 3-Year: 36.9% (10K SIP per month – Investment Rs 3.6 Lakhs and it would have grown to Rs 6.05 Lakhs)
- 5-Year: 46.9%
- 10-Year: 26.8%
10K SIP Investment would have turned into
- 1-Year : Investment 1.2 Lakhs and Current value is 1.5 Lakhs
- 2-Year : Investment 2.4 Lakhs and Current value is 3.6 Lakhs
- 3-Year : Investment 3.6 Lakhs and Current value is 6.05 Lakhs
- 5-Year : Investment 6 Lakhs and Current value is 18.5 Lakhs
- 10-Year : Investment 12 Lakhs and Current value is 49.9 Lakhs
Our View:
Smallcap funds invests in small-size companies which are high risk, however provides high returns too. Recently SEBI has asked all AMCs to do stress test for their midcap and smallcap funds which investors need to be aware. This fund has a beta of 1.05 and alpha of 11.5. This fund has been consistent performer in the medium to long term. I am personally investing in this smallcap mutual fund. High risk tolerance investors can make such funds as part of their portfolio for medium to long term perspective. Moderate or low risk investors should avoid such funds.
Also Read: Are you investing in Best Mutual Funds recommended by Google Gemini AI?
#3 – Quant Mid Cap Fund – 3 Year SIP Returns – 36.2%
Investment Objective:
The Quant Mid Cap Fund’s main investment objective is to provide long-term growth opportunities and generate capital appreciation by investing in a portfolio of mid-cap companies. The fund also aims to generate income and diversify its portfolio of mid-cap companies.
Performance Details
Absolute Returns of the Fund
- 1-Year Return: 64.8%
- 2-Year Return: 80.8%
- 3 Year Return: 166% (1 Lac would have turned to 2.6 Lacs)
- 5-Year Return: 300%
- 10-Year Return: 572%
Annualised Returns of the fund
- 1-Year Return: 64.8%
- 2-Year Annualised Return: 34.3%
- 3-Year Annualised Return: 38.6%
- 5-Year Annualised Return: 31.9%
- 10-Year Annualised Return: 20.9%
SIP Returns of the fund (annualised)
- 1-Year: 65%
- 2-Year: 44.2%
- 3-Year: 36.6% (10K SIP per month – Investment Rs 3.6 Lakhs and it would have grown to Rs 6 Lakhs)
- 5-Year: 38.8%
- 10-Year: 24.7%
10K SIP Investment would have turned into
- 1-Year : Investment 1.2 Lakhs and Current value is 1.59 Lakhs
- 2-Year : Investment 2.4 Lakhs and Current value is 3.59 Lakhs
- 3-Year : Investment 3.6 Lakhs and Current value is 6 Lakhs
- 5-Year : Investment 6 Lakhs and Current value is 15.4 Lakhs
- 10-Year : Investment 12 Lakhs and Current value is 44 Lakhs
Our View:
Midcap funds invests in mid-sized companies that are high risk, however provides high returns too. This fund has a beta of 1.01 and alpha of 9.9. This fund has been consistent performer in the medium to long term. I am personally investing in this midcap mutual fund too. High risk tolerance investors can make such funds as part of their portfolio for medium to long term perspective. Moderate or low risk investors should avoid such funds.
#4 – Motilal Oswal Midcap Fund – 3 Year SIP Returns – 33.6%
Investment Objective:
This fund predominantly invests in Mid-Cap companies offering long-term competitive advantage and potential for growth.
Performance Details
Absolute Returns of the Fund
- 1-Year Return: 53.3%
- 2-Year Return: 76.8%
- 3 Year Return: 142% (1 Lac would have turned to 2.4 Lacs)
- 5-Year Return: 223%
- 10-Year Return: 720%
Annualised Returns of the fund
- 1-Year Return: 53.3%
- 2-Year Annualised Return: 32.8%
- 3-Year Annualised Return: 34.2%
- 5-Year Annualised Return: 26.4%
- 10-Year Annualised Return: 23.4%
SIP Returns of the fund (Annualised)
- 1-Year: 48%
- 2-Year: 38.3%
- 3-Year: 33.3% (10K SIP per month – Investment Rs 3.6 Lakhs and it would have grown to Rs 5.82 Lakhs)
- 5-Year: 33.1%
- 10-Year: 21.8%
10K SIP Investment would have turned into
- 1-Year : Investment 1.2 Lakhs and Current value is 1.5 Lakhs
- 2-Year : Investment 2.4 Lakhs and Current value is 3.4 Lakhs
- 3-Year : Investment 3.6 Lakhs and Current value is 5.8 Lakhs
- 5-Year : Investment 6 Lakhs and Current value is 13.5 Lakhs
- 10-Year : Investment 12 Lakhs and Current value is 38.05 Lakhs
Our View:
Like I indicated in above sections, midcap mutual funds invests in mid-size companies that are very high risk, however these generate high returns too. This fund has a beta of 0.8 and alpha of 9.9. This fund has been consistent performer in the medium to long term. High risk appetite investors can make such funds as part of their portfolio for medium to long term perspective. Moderate or low risk investors should avoid such funds.
You may also like: 20 Equity Mutual Funds generated positive returns every year in last 10 years
#5 – Quant Large and Mid Cap Fund – 3 Year SIP Returns – 32.6%
Investment Objective:
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Large Cap and Mid Cap companies.
Performance Details
Absolute Returns of the Fund
- 1-Year Return: 60.1%
- 2-Year Return: 72.3%
- 3 Year Return: 125.4% (1 Lac would have turned to 2.25 Lacs)
- 5-Year Return: 216.8%
- 10-Year Return: 729.1%
Annualised Returns of the fund
- 1-Year Return: 60.1%
- 2-Year Annualised Return: 31.1%
- 3-Year Annualised Return: 31.1%
- 5-Year Annualised Return: 25.9%
- 10-Year Annualised Return: 23.5%
SIP Returns of the fund (annualised)
- 1-Year: 64.1%
- 2-Year: 41.2%
- 3-Year: 32.8% (10K SIP per month – Investment Rs 3.6 Lakhs and it would have grown to Rs 5.74 Lakhs)
- 5-Year: 31.4%
- 10-Year: 21.9%
10K SIP Investment would have turned into
- 1-Year : Investment 1.2 Lakhs and Current value is 1.5 Lakhs
- 2-Year : Investment 2.4 Lakhs and Current value is 3.5 Lakhs
- 3-Year : Investment 3.6 Lakhs and Current value is 5.7 Lakhs
- 5-Year : Investment 6 Lakhs and Current value is 12.9 Lakhs
- 10-Year : Investment 12 Lakhs and Current value is 38.1 Lakhs
Our View:
This large cap and midcap fund funds invests in large cap companies as well as mid-size companies. While largecap component provides stable returns, midcap category comes with high risk and provide high return too. This fund has a beta of 0.99 and alpha of 11.9. This fund has been consistent performer in the medium to long term. High risk investors can make such funds as part of their portfolio for medium to long term perspective. Moderate or low risk investors should avoid such funds.
Conclusion: In summary, the mutual fund schemes highlighted in this article have generated outstanding SIP returns over the past three years, however majorly owing to the bull market. Investors should first consider their investment goals, risk tolerance and time frame before considering any of these funds indicated in this article.
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