30 years SIP: How have MFs built wealth for long term investors
Mutual funds are a power vehicle to participate in the equity markets. Well-managed schemes have proved with their long-term track records that wealth can be built over the long term
The equity market has never failed patient long-term investors. Well-managed mutual fund (MF) schemes have proved with their long-term track records that wealth can be built over the long term. The power of compounding works in favour of long-term investments. Systematic Investment Plans (SIPs) are one of the most popular ways to invest in MFs. SIPs help inculcate financial discipline and build wealth over the long run. It helps to take advantage of market volatility through rupee-cost averaging. Franklin Templeton Mutual Fund (formerly known as Kothari Pioneer) introduced the first SIP in India in 1993.
There are 14 equity-oriented schemes (including equity-linked savings schemes, or ELSS, and balanced funds) that have completed 30 years in the Rs 65 lakh crore Indian MF industry. Here is the list of equity diversified funds that multiplied investors' money through SIPs over the last 30 years. Schemes that are approaching their 30-year mark, like ICICI Pru Multicap and Franklin India Flexi Cap, are also taken into consideration. Tata Large & Midcap, Tata Midcap growth and Taurus Flexicap are excluded as their NAV history is available only from 1996. Performance of these schemes cannot be compared as they each use a distinct investment strategy. Data source: ACEMF
2/13
Scheme Name: Franklin India Prima Fund Formerly known as Kothari Pioneer Prima Inception Date: 1-Dec-1993 Present Category: Mid-Cap Fund Latest Corpus: Rs 12,529 crore 30-year SIP return (XIRR): 21.4% XIRR refers to Extended Internal Rate of Return
Scheme Name: Franklin India Flexi Cap Fund Formerly known as Franklin India Equity, Franklin India Prima Plus and Kothari Pioneer Prima Plus Inception Date: 29-Sep-1994 Present Category: Flexi Cap Fund Latest Corpus: Rs 17,417 crore 30-year SIP return (XIRR): 20.5%
Scheme Name: Franklin India Bluechip Fund Formerly known as Kothari Pioneer Bluechip Inception Date: 01-Dec-1993 Present Category: Large-Cap Fund Latest Corpus: Rs 8,257 crore 30-year SIP return (XIRR): 18.6%
6/13
Scheme Name: ICICI Prudential Multicap Fund Formerly known as ICICI Prudential Top 200 and Prudential ICICI Power Inception Date: 1-Oct-1994 Present Category: Multi-Cap Fund Latest Corpus: Rs 13,921 crore 30-year SIP return (XIRR): 18.1%
Scheme Name: HDFC Capital Builder Value Fund Formerly known as HDFC Capital Builder and Zurich India Capital Builder. Inception Date: 1-Feb-1994 Present Category: Value Fund Latest Corpus: Rs 7,608 crore 30-year SIP return (XIRR): 18%
8/13
Scheme Name: SBI Large & Midcap Fund Formerly known as SBI Magnum Multiplier Plus Inception Date: 28-Feb-1993 Present Category: Large & Mid Cap Latest Corpus: Rs 27,382 crore 30-year SIP return (XIRR): 17.4%
Scheme Name: SBI ESG Exclusionary Strategy Fund Formerly known as Magnum Multiplier Scheme ’90 and Magnum Equity Inception Date: 1-Jan-1991 Present Category: ESG theme Latest Corpus: Rs 6,046 crore 30-year SIP return (XIRR): 15.7%
11/13
Scheme Name: HDFC Large- and Mid-Cap Fund Formerly known as Morgan Stanley Growth Fund and HDFC Large-Cap Fund Inception Date: 18-Feb-1994 Present Category: Large & Mid Cap Latest Corpus: Rs 23,047 crore 30-year SIP return (XIRR): 15.2%
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Scheme Name: UTI Flexi Cap Fund Formerly known as UTI Mastergain '91 and UTI Equity Inception Date: 18-May-1992 Present Category: Flexi Cap Fund Latest Corpus: Rs 26,396 crore 30-year SIP return (XIRR): 15%
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Scheme Name: UTI Large Cap Fund Formerly known as UTI Mastershare Inception Date: 15-Oct-1986 Present Category: Large-Cap Fund Latest Corpus: Rs 13,595 crore 30-year SIP return (XIRR): 13.5%
