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Every mutual fund investor knows that a Systematic Investment Plan or SIP is the best way to invest in equity mutual funds to create wealth over a long period.

Mahindra Mutual Fund Badhat Yojana Regular – Growth

Everymutual fundinvestor knows that aSystematic Investment PlanorSIPis the best way to invest in equitymutual fundsto create wealth over a long period. Apart from investing regularly, it also imparts financial discipline in the lives of investors.

AMFI data clearly shows that SIPs have been gaining popularity among mutual fund investors.

The mutual fund industry added SIPs worth Rs 67,190 crore in 2017-18, 53 per cent more than total SIP amount added in FY17. In July, the industry added SIPs worth Rs 7,554 crore as against Rs 4,947 crore in the same month last year and Rs 3,334 crore in July 2016. At present, there are about 2.33 crore SIP accounts.

Increasing awareness and popularity of SIPs made us look at the equity schemes which have multiplied investors money over the period. For this purpose we looked at the equity schemes including largecap, large and midcap, midcap, multicap, smallcap, value funds and Equity Linked Saving Schemes (ELSS). These equity scheme categories are in accordance with Sebis guidelines on re-categorisation of mutual funds. We took out those schemes which have generated the maximum returns when invested via SIP, for investors both in five-year and 10-year periods (See table below).

Please note, the past performance does not guarantee future performance. However, it gives you an idea about the long-term record of a scheme. Also, when we filtered out the schemes which have not completed 10 years, we might have lost some schemes which have actually performed well during their course of time. This acts as a limitation to this study.

We started with a list of equity schemes including largecap, large and midcap, midcap, multicap, smallcap, value funds and Equity Linked Saving Schemes (ELSS) which were at least 10 years old. Then, we excluded schemes which had assets lower than Rs 500 crore as on June 30, 2018. Next, we calculated average internal rate of return (IRR) for each category separately. Then, we filtered all those schemes which generated an IRR above the categorys average. We considered regular plans with growth option.

We performed this exercise on both five-year period and 10-year period. Five-year period ranges from July 2013 to June 2018, which makes 60 monthly instalments in total. 10-year period begins from July 2008 and ends in June 2018, thus a total of 120 monthly SIP instalments. We have assumed a monthly SIP of Rs 10,000. For five-year period, total amount invested was six lakh rupees and for a 10-year period, it was Rs 12 lakh. SIP date assumed was 1st of every month. We used Ace Mutual Fund database for the data.

After all the filters and calculations, we took out schemes which exceeded the category average XIRR in both the five-year and 10-year period in each category. This gives us the top SIP performers.

(%)Mirae Asset Tax Saver Direct-G2.12-3.40-0.408.8114.88Invest NowAxis Long Term Equity Direct-G5.601.186.7013.3613.34Invest NowMirae Asset Tax Saver Reg-G1.96-3.77-1.276.9513.30Invest Now

– Returns less then 1 year are absolute and above 1 year are annualised.

– Returns of 1 year are absolute and above 1 year are annualised..

What are the different types of mutual fund SIPs?

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What are the different types of mutual fund SIPs?

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