SIPs or systematic investment plans that inculcate a sense of investment discipline in your overall financial plan go a long way in helping you achieve your financial goals and in the current time when the Indian markets have seen sharp correction owing to global sell off may even be a more righteous time to lap up the product for higher returns. Also, in the course of market correction, experts suggest to remain invested in the product and during the time frame they can increase or decrease their allocation in the investment option.
Here are the mutual fund schemes that gave up to 19% return in five years time:
1. Sundaram Mid-cap fund:
This is a mid-cap fund with a CRISIL 2 rank. In 15 years time, the SIP of monthly Rs. 10000 has turned into Rs. 63.38 lakh in value. While a lump sum of Rs. 1 lakh has provided a return of Rs. 12.44 lakh. The minimum SIP amount in the scheme is Rs. 250 and minimum investment is Rs. 100.
Since launch i.e. from July 30, 2002, the scheme has offered a return to the tune of 24.5%. Total assets under the scheme equal to Rs. 6178 crore and the expense ratio is 1.92%. Top holdings of the fund include Ramco Cements, Trent Ltd., Whirlpool, Honeywell.
2. ICICI Prudential FMCG Fund:
This is a sectoral or thematic fund with NAV of Rs. 245.54 as on February 27, 2020. In SIP, one can start investment for as less as Rs. 100 while for lump-sum one would have to shell out Rs. 5000. Considering the term of 15 years, with a monthly SIP of Rs. 10000, the fund is now valued at Rs. 65.94 lakh. And if one would have invested Rs. 1 lakh in lump sum in the scheme , then over a period of 15 years, the fund is now valued at Rs. 13.74 lakh.
Top holdings of the fund include ITC, Hindustan Unilever, Marico, Tata Global Beverages, Relaxo Footwears.
3. SBI Focused Equity Fund:
It is a focused fund i.e. CRISIL 4-star rated and investors preferring to take select bets for higher returns can opt for the scheme. The minimum SIP amount in the scheme is Rs. 500 and for one-time investment one would need to dole out Rs. 5000. In a 15 year period, the monthly SIP of 10000 i.e. Rs. 18 lakh investment has turned to Rs. 67.83 lakh while one time investment of Rs. 1 lakh to Rs. 11.26 lakh.
Top holdings of the scheme include HDFC Bank, P&G, Bharti Airtel, Bajaj Finance etc.
So, to reap such high return you need to stay invested in the schemes irrespective of market movement.
The data is aggregated from moneycontrol and Value Research online site as on February 29, 2020 Mutual funds are subject to market risks and potential investors are suggested to read all the offer documents beforehand to have an insight on the finer print of the offering.
The article is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.
About the author:
Roshni Agarwal has been covering personal finance and investment planning for close to 5 years. She has a degree in MBA, Finance and writes on Mutual Funds, Stock Markets and Currency markets.