Recently we reviewed 10 mutual funds that generated highest SIP returns in 10 years. Mr. Raghav, one of our readers would like to know the mutual fund scheme that generated highest SIP returns in 5 years and whether he can invest in such fund now or not. 5 years time frame is medium term, hence it is a genuine question that might come to investors mind whether one can assess performance based on 5 years time frame. In this article we would provide complete details about the mutual fund scheme that generated highest SIP returns in the last 5 years.
Also Read: High Return Mutual Funds to invest in 2022-23
How we filtered this mutual fund scheme?
We considered all equity mutual fund schemes excluding sector funds. Means this includes large cap funds, mid cap funds, small cap funds, balanced funds and index funds.
Filtered fund that generated highest SIP returns in the last 5 years among direct mutual funds.
Quant Small Cap Fund stands out 1st in the list after applying these filters.
This fund generated highest SIP returns of 36.75% in the last 5 years while 3 more quant funds generated between 31% to 35% returns during a similar period.
About Quant Small Cap Fund
The investment objective of the MF is to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of small cap companies.
One can invest a minimum of Rs 5,000 in lump sum or Rs 1,000 through SIP.
While there is no entry load, there is an exit load of 1% if redeemed before 1 year.
This fund allocates 65% to 100% in small cap companies, up to 35% in large cap and mid cap companies, up to 35% in debt and money market instruments and up to 10% in REITs and InvITs.
Since this is a small cap fund, this is categorized as very high risk fund.
Current AUM is Rs 2,079 Crores.
Its current expense ratio is 0.62%.
Where does this mutual fund invest now?
While this fund invests majorly in small cap companies, here are the portfolio details.
This fund majorly invests in sectors of consumer staples, services, materials, healthcare, construction, capital goods, financials etc.,
Its concentration is on 58 companies now. Its top holdings are ITC, IRB Infra, Ambuja Cements, Hindustan Copper, India Cements, HFCL, Arvind, Linde India, Ruchi Soya, Aegis Lostics, Praj Industries, EID Parry etc.,
Also read: Multibagger mutual funds with 10x returns in 10 years
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 37% SIP returns in last 5 years and 56% 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 14.8 Lacs.
B) Annualised Performance
- 7 year annualized returns – 19%
- 5 year annualized returns – 23% (investment of 1 lac would have turned 2.8 lacs)
- 3 year annualized returns – 53%
- 1 year returns – 12%
C) Rolling Returns
From a 3 year rolling return perspective, this fund generated:
- Over 12% returns – 60% of the times
- 1% to 12% returns – 14% of the times
- Negative returns – 26% of the times
From a 5 year rolling return perspective, this fund generated:
- Over 12% returns – 29% of the times
- 1% to 12% returns – 51% of the times
- Negative returns – 20% of the times
If we also observe, this fund generated 16% annualised returns since inception of the mutual fund scheme.
This fund is able to generate 2% to 4% higher returns in last 5 years compared to its peer small cap mutual fund schemes.
Who can invest in this smallcap fund?
Earlier we analyzed 10 mutual fund schemes that generated highest SIP returns in 10 years which includes various market cap categories.
Mutual funds can perform better in medium to long term. This mutual fund scheme is small cap fund and is very high risk. Smallcap or midcap segment can outperform in long term and may or may not perform well in short to medium term.
Don’t carry away with such high SIP returns of this fund.
If you are a high risk investor and want to invest for a medium to long term, you can invest in such funds. You need to have patience in case such mutual funds underperform in short to medium term. You should 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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I am doing SIP of Rs 18,000/-per month as under:-
1.Axis LT Eqt. Reg-G=Rs 5000/-
2.Nippon IND Multi Cap Reg-G=Rs 3000/
3.Nippon IND banking &fin services=Rs3000
4Nippon IND Pharma Reg-G=Rs 5000/-
5.Nippon IND Tax saver(Elss)Reg-G=Rs 2000/-
The above SIP m doing for last 5 years.
Pl suggest any modifications, if any requires
Your portfolio has either only tax savings or only sector funds (high risk). If you are investing for long term, go for largecap, midcap and smallcap funds based on your risk appetite.
Dear Sir,
Big Fan of yours. I’m 37 years old, I have been investing since Oct’2021. Currently investing 15000 monthly @ lumpsum and looking for long term investment may be 15-20 years. Could you please suggest if my MF matrix is fine or I need to undergo changes? specially SL No 12 to 14??
SL No Fund Name Present Corp
1. Canara Robeco SC FG 15000
2. Edelweiss Recently 20000
Listed IPO FG
3. IIFL Focused E FG. 10000
4. Invesco India Infra FG. 10000
5. Mahindra Multi Cap. 10000
Unnati Growth
6. Mahindra Mid Cap. 10000
Badhat Growth
7. PGIM India MCOFG. 15000
8. Parag Parikh FCFG. 11000
9. Quant Tax Plan Growth. 12000
10. Sundaram Services FG. 10000
11. Tata Digital India FG. 20000
12. SBI Long Term EFG. 2000
13. Aditya Birla SL MCFG. 2000
14. ICICI Prudential BCFG. 3000
Thanks and Regards Sir
Eagerly awaiting your precious response.
Subir Roy
You have too many funds, reduce them to 5-7 (if you can). e.g. you don’t need focused fund or too many midcap funds or small cap funds. You can consider portfolio like this (as an example)
1) CR Smallcap fund
2) Invesco Infra fund
3) PGIM Midcap fund
4) Parag Parikh flexicap
5) Tata digital fund
6) ICICI Bluechip fund
and tax saving one (if planning for tax savings)
I am investing in Mutual funds from past 7 to 8 months with 12500.
UTI index fund 4000
Paras parig flexi cap 3000
Axis long term equity Elss 2000
Canara robecco blue chip fund 3500
Are these funds okay or should I remove/add funds?
Are the allocations fine? Should I increase or decrease ?
Are the stocks overlapping?
Please help
All these funds are good. If you are looking for tax saving, axis long term equity fund is okay, else exit and invest in equity fund
I invest in Mutual funds through SIP worth Rs 20000 per month
Canara robecco emerging equity
Canara robecco focused equity
Canara robecco equity hybrid
Sbi small cap
5000 each
Kindly suggest me if I have to do any changes or these funds are okay
Emergin, hybrid fund and smallcap funds are fine. You can avoid focused equity funds and invest in largecap or index fund
Hi
What category of mutual fund I as beginner for investing should invest in.
A beginner might not have even thought of goals and do not know their risk appetite, can start with largecap mutual funds to invest.
I have invested in more than 25 to 30 funds since several years. Will you please guide me I will furnish full details to your mail/address. What are to be continued or redeemed. I shall be ever grateful to you.
Sure. You can email me suresh@myinvestmentideas.com
Thanks for sharing.
I have following monthly SIPs. Do you recommend any changes?
PPFCF 45%
Axis Blue Chip 20%
SBI Small Cap 20%
Motilal Oswal Nasdaq 100 FOF 15% (especially this one as there are foreign investment regulations)
Dev, Good funds. You have largecap fund, flexicap fund, smallcap fund and international fund. If possible, you can add one midcap fund too.
Thanks to your posts that I could choose these funds.
I will have to go for ELSS fund also this year.
So, I might not be comfortable adding one more fund. Still, I will research on midcap funds and then will decide.
Thank you so much!