This Largecap Mutual Fund generated Highest SIP Returns in 5 years
Investors always interested about knowing mutual fund schemes that generated high returns especially SIP returns. Recently we reviewed an equity mutual fund that generated highest SIP returns in 5 years across market cap. There were many queries asking to write about highest SIP return funds from each category of mutual funds. In this article we would provide complete details about the large cap mutual fund scheme that generated highest SIP returns in the last 5 years.
Also Read: 10 Mutual Funds with Highest SIP in last 10 years
How we filtered this mutual fund scheme?
We considered all large cap mutual fund schemes, including index funds. This list includes even focussed funds i.e. Funds, which focus only on a limited number of stocks.
Filtered fund that generated highest SIP returns in the last 5 years among direct mutual funds.
Quant Focused Fund stands out 1st in the list after applying these filters.
This fund generated highest SIP returns of 20% in the last 5 years while next 5 large cap funds generated 16% to 17% SIP returns.
About Quant Focused Fund
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a focused portfolio of Large Cap – ‘blue chip’ – companies. There is no assurance that the investment objective of the Scheme will be realized.
One can invest a minimum of Rs 5,000 in lump sum or Rs 1,000 per month through SIP for 6 months.
There is no entry load and exit load.
This fund allocates 65% to 100% in large cap companies, up to 35% in other companies, up to 35% in debt and money market instruments and up to 10% in REITs and InvITs.
Since this is a Focused Fund, this is categorized as very high risk fund.
Current AUM is Rs 143 Crores.
Its current expense ratio is 0.57%.
Where does this mutual fund invest now?
While this fund invests majorly in large cap companies, here are the portfolio details.
Currently it has invested 98.3% in equity and balance holds in cash.
This fund majorly invests in sectors of consumer staples, energy, financial services, insurance and healthcare.
Its concentration is on 25 companies now. Its top holdings are ITC, Adani Ports, NTPC, L&T SBI, United Spirits and Reliance.
How is the performance of the fund?
Let us check the performance of SIP, lump sum and rolling returns.
A) SIP Performance
This fund generated 30% SIP returns in last 5 years and 27% SIP returns in last 3 years.
Investment of Rs 10,000 SIP per month, the investment value would have been Rs 6 Lacs (10,000 x 60 months) and the investment value would have now grown to Rs 9.9 Lacs in 5 years.
B) Annualised Performance
- 7 year annualized returns – 14%
- 5 year annualized returns – 13% (investment of 1 lac would have turned 1.7 lacs)
- 3 year annualized returns – 22%
- 1 year returns – minus 1%
C) Rolling Returns
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 55% of the times
- 1% to 12% returns – 39% of the times
- Negative returns – 6% of the times
From a 5 year rolling return perspective, this fund generated:
- Over 12% returns – 70% of the times
- 1% to 12% returns – 30% of the times
- Negative returns – Zero times
If we also observe, this fund generated 17.4% annualised returns since inception of the mutual fund scheme.
This fund is able to generate 2% to 5% higher returns in last 5 years compared to its peer large cap mutual fund schemes.
Also Read: Mutual Funds doubling every 5 years
Who can invest in this large cap fund?
Earlier we analysed 10 mutual fund schemes that generated highest SIP returns in 10 years, which include various market cap categories. Similarly, we analysed equity fund that generated highest SIP returns in the last 5 years, which turned to be small cap fund.
Mutual funds can perform better in medium to long term. This mutual fund scheme is a Focused Fund from large cap category and is very high risk. Largecap or focussed segment can outperform in medium to long term.
If you are a moderate to high risk investor and want to invest for a medium to long term, you can invest in such funds. Alternatively, you can invest in a diversified portfolio of mutual funds consisting of large cap, midcap and smallcap funds so that underperformance of one segment should not affect your portfolio.
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