It works! How SIPs in MC30 equity schemes have outperformed

Systematic investment plans (SIP) in mutual funds have been a powerful tool in helping investors generate better returns over the long run. But what is the evidence? Moneycontrol has taken a look at returns from equity funds that belong to MC30, Moneycontrol’s curated portfolio of 30 investment-worthy mutual fund (MF) schemes. We looked at their rolling five-year SIP returns, going over the last 10 years. In most of the five-year time frames, the study shows that MC30 equity schemes have outperformed their category averages and their respective benchmarks most of the time. Like rolling returns, the rolling SIP returns, too, explain how the schemes delivered consistently over the period. Remember, though, that past performance does not guarantee future performance. Data source: ACEMF.

Scheme name: Mirae Asset Largecap Fund
Category: Largecap
Fund manager: Gaurav Misra and Gaurav Khandelwal
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 14.2%
Average 5-year SIP return (XIRR) of the large-cap category over the last 10 years: 11%
The recent period saw largecap funds as a category underperforming the benchmark due to a tighter investment universe and relatively higher expense ratio. However, Mirae Asset Large Cap Fund managed to outperform its peers consistently.

Canara Robeco Bluechip Equity Fund
Category: Largecap
Fund manager: Shridatta Bhandwaldar and Vishal Mishra
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 13.5%
Average 5-year SIP return (XIRR) of largecap category over the last 10 years: 11%
The performance of Canara Robeco Bluechip Equity Fund has been impressive as it managed to outperform both the category and the benchmark.

Kotak Flexicap Fund
Category: Flexicap
Fund manager: Harsha Upadhyaya
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 13.3%
Average 5-year SIP return (XIRR) of flexicap category over the last 10 years: 12%
Over the past year, Kotak Flexicap underperformed its peers and the benchmark due to a lower level of participation in the recent mid- and smallcap rallies due to its larger corpus.

Parag Parikh Flexi Cap Fund
Category: Flexicap
Fund manager: Rajeev Thakkar, Rukun Tarachandani and Raunak Onkar
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 16.5%
Average 5-year SIP return (XIRR) of flexicap category over the last 10 years: 12%
Parag Parikh Flexi Cap Fund has managed to deliver better returns than its peers since its launch in May 2013.

UTI Flexi Cap Fund
Category: Flexicap
Fund manager: Ajay Tyagi
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 14%
Average 5-year SIP return (XIRR) of the flexicap category over the last 10 years: 12%
UTI Flexi Cap Fund demonstrated relatively better performance than its peers in most of the period under review.

Axis Midcap Fund
Category: Midcap
Fund manager: Shreyash Devalkar and Hitesh Das
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 16.6%
Average 5-year SIP return (XIRR) of the midcap category over the last 10 years: 13.8%
Axis Midcap Fund has been an above-average performer in most parts of the time frame.

DSP Midcap Fund
Category: Midcap
Fund manager: Vinit Sambre, Resham Jain and Abhishek Ghosh
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 14.5%
Average 5-year SIP return (XIRR) of the midcap category over the last 10 years: 13.8%
A larger corpus in the midcap segment has been one of the deterrent factors for DSP Midcap Fund delivering relatively better returns over the last year.

Invesco India Midcap Fund
Category: Midcap
Fund manager: Pranav Gokhale
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 15%
Average 5-year SIP return (XIRR) of the midcap category over the last 10 years: 13.8%
Invesco India Midcap Fund has been a decent performer in most of the equity market cycles.

Kotak Emerging Equity Fund
Category: Midcap
Fund manager: Pankaj Tibrewal
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 16%
Average 5-year SIP return (XIRR) of the midcap category over the last 10 years: 13.8%
Kotak Emerging Equity Fund managed to outperform its peers and benchmarks in most of the time frames in the past.

Axis Small Cap Fund
Category: Smallcap
Fund manager: Anupam Tiwari and Hitesh Das
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 16.6%
Average 5-year SIP return (XIRR) of the smallcap category over the last 10 years: 14.5%
Axis Small Cap Fund managed to deliver better returns than others since its launch in November 2013.

SBI Small Cap Fund
Category: Smallcap
Fund manager: R Srinivasan
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 20.5%
Average 5-year SIP return (XIRR) of the smallcap category over the last 10 years: 14.5%
The SBI fund’s long-term performance has been impressive since its launch. It managed to outperform its peers and benchmark by a significant margin.

Canara Robeco Equity Tax Saver Fund
Category: ELSS
Fund manager: Shridatta Bhandwaldar and Vishal Mishra
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 14%
Average 5-year SIP return (XIRR) of the ELSS category over the last 10 years: 12%
The scheme’s recent performance has been impressive due to the fund managers’ efficient stocks and sectors bets.

Kotak Tax Saver Fund
Category: ELSS
Fund manager: Harsha Upadhyaya
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 13%
Average 5-year SIP return (XIRR) of the ELSS category over the last 10 years: 12%
The fund has been a decent performer in most of the equity market cycles.

Axis Focused 25 Fund
Category: Focused equity
Fund manager: Jinesh Gopani and Hitesh Das
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 14.8%
Average 5-year SIP return (XIRR) of the focused category over the last 10 years: 12.4%
Its higher allocation to largecaps has led to relative underperformance in the last year.

SBI Focused Equity Fund
Category: Focused equity
Fund manager: R Srinivasan
Average 5-year SIP return (XIRR) of the scheme over the last 10 years: 15%
Average 5-year SIP return (XIRR) of the focused category over the last 10 years: 12.4%
SBI Focused Equity Fund has had a notable track record since its launch.