Top 3 Equity Mutual Funds: How Much Returns You Will Earn On SIPs of Rs 5,000 Per Month?

One of the most popular investment routes in mutual funds is through the Systematic Investment Plan (SIP). Convenient and hassle-free, SIPs are one of the most affordable and disciplined forms of investment that is available in the market. An investor can begin a SIP with as little as Rs 500 per month. SIPs pattern is similar to recurring deposits where every month an investor can deposit a fixed amount, generally when one receives their salary. At present, the top three equity mutual funds for SIPs are - Quant Tax Plan Direct-Growth, Quant Infrastructure Fund Direct-Growth, and BOI AXA Small Cap Fund Direct-Growth.

According to AMFI's website, SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by mutual funds are easily the best way to enter the world of investments over the long term.

Data from AMFI showed that currently there is about 6.81 crore (68.1 million) SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. In July, inflows in SIP hit a record of Rs 15,245 crore. So far, in FY24, SIP inflows stood at Rs 58,456 crore. In the previous fiscal FY23, the inflow stood at a record Rs 1,55,972 crore.

As per Groww's website, the best SIPs equity mutual funds are Quant Tax Plan Direct-Growth, Quant Infrastructure Fund Direct-Growth, and BOI AXA Small Cap Fund Direct-Growth currently in 2023. An SIPs of Rs 5,000 per month in these three equity mutual funds, will lead to majority of them doubling the investment value in the long-term.

Quant Tax Plan Direct-Growth:

As per the Quant website, the investment objective of this scheme is to generate Capital Appreciation by investing predominantly in a well-diversified portfolio of Equity Shares with growth potential. This income may be complemented by possible dividends and other income.

It is an open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit. An investor can begin SIPs in this income with a minimum of Rs 500 per month.

The NAV of the fund is Rs 266.40 as of August 22, 2023.

As per Groww's website, the fund has given a 14.09% return in 1 year, while its 3-year annualised return is 35.35% and 5-year annualised return is 24.67%. Using its calculator, a SIP of Rs 5,000 per month for 5 years will double an investor's investment. Your investment would be around Rs 3 lakh which will rise to over Rs 6.25 lakh corpus in 5 years, registering over 108.5% upside.

Quant Infrastructure Fund Direct-Growth:

This equity MF's primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of infrastructure-focused companies. There is no assurance that the investment objective of the Scheme will be realized. The scheme is launched under the Thematic category and is an open-ended equity scheme following an infrastructure theme.

Minimum SIPs of Rs 1,000 per month can begin in this scheme. Also, there is no lock-in period in this scheme.

Using Groww's calculator, SIPs of Rs 5,000 per month, will lead to an investment of Rs 3 lakh in 5 years which will rise to over Rs 6.51 lakh corpus. This would be rise of 117% in your investment value.

1-year return of this fund is 13.74%, while 3-years and 5-years annualised return is 42.78% and 24.67% respectively.

As of August 22, the NAV is Rs 25.21.

Bank of India Small Cap Fund Direct-Growth:

The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. However, there can be no assurance that the investment objectives of the Scheme will be realized, as per Bank of India Mutual Fund website. There is no lock-in period.

Under normal market conditions, the fund will invest 65% to 100% of assets in a diversified portfolio constituting equity and equity-related instruments of small-cap companies with sustainable business models, and potential for capital appreciation, it added.

The scheme's 1-year performance is up by 25.03% and the 3-year annualised return is up to 36.91%, as per Groww's website.

On SIPs of Rs 5,000 per month, the investment value would be Rs 1.80 lakh in 3 years, which rises to nearly Rs 2.6 lakh corpus as of now, registering a 44.3% upside.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.