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Mutual Fund Investment, is a financial tool where people invest their money with eth aim to generate returns for their financial goals. Well, while people select mutual fund schemes to invest they are advised by experts, don’t run behind the recent toppers. Instead, select the right fund for you based on your investment objectives.
Experts also say that, while you invest, the prominent thing to maintain is your discipline and continuity towards your investment. Market are volatile and fluctuating is their habit. It goes high, it goes low, so goes your portfolio!
However, your mutual fund needs time to grow. The power of compounding works in your favor when you invest in mutual funds without lapsing and for the long term. And this is referred to as the magic of long-term investing.
The magic of long-term investing has been best explained by some of the mutual fund's schemes, which have generated returns of more than 4x of their invested amount made via systematic investment plans (SIP) over the last 15 years.
Let us look at having a detailed analysis of these funds. However, do note that past performance is not indicative of future results.
Canara Robeco Emerging Equities Fund
Earlier, say before mid-2018, the Canara Robeco Emerging Equities Fund was moved from the mid-cap category large & mid-cap category. Higher allocation to mid and small-cap stocks helped the fund to deliver higher returns in the long run.
A SIP in the fund with Rs 10,000 per month over the last 15 years would have generated a total corpus of Rs. 92 lakh. Return as measured by Extended Internal Rate of Return (XIRR) from the 15-year SIP in the fund works out to 19.6 percent.
Kotak Small Cap Fund
Earlier Kotak Small Cap Fund was known as Kotak mid-cap fund. It has done exceedingly well within the small-cap category on SIPs of Rs 10,000/monthly contributed for the last 15 years. It delivered an XIRR of 19 percent during the period.
Quant Active fund
Formerly Quant Active Fund was known as Escorts Growth. This fund is managed with a higher allocation to mid and small-cap stocks. The 15-year SIP of Rs 10,000 monthly, for the same Quant Active Cap Fund, delivered an XIRR of 18 percent.
Invesco India Mid-Cap Fund
Invesco India Mid-cap fund, for the 15-year SIP of Rs 10000 per month, has delivered an XIRR of 18 percent. It generated a total corpus of Rs. 79 lakh.
Franklin India Smaller Cos Fund
This fund has delivered an XIRR of 18 percent for the SIP of Rs 10,000/monthly contributed for the tenure of the last 15 years. It generated a total corpus of Rs. 79 lakh, which is more than quadrupled the invested amount of Rs 18 lakh.
Kotak Emerging Equity Fund
Kotak Emerging Equity Fund has delivered an XIRR of 18 percent for the SIP of Rs 10,000 monthly contributed for the tenure of the last 15 years. It generated a total corpus of Rs. 78 lakh.
ICICI Prudential Value Discovery Fund
ICICI Pru Value Discovery Fund has its allocation significantly lower to the mid and small-cap stocks. Thanks to its prudent stock selection, the scheme has done notably well over the long run. The fund has delivered an XIRR of 18 percent for the SIP of Rs 10,000 monthly contributed for the tenure of the last 15 years. It generated a total corpus of Rs. 78 lakh.
UTI Mid-cap Fund
UTI Mid Cap Fund has delivered an XIRR of 17.5 percent for the SIP contributed for the tenure of the last 15 years. It generated a total corpus of Rs. 77 lakh.
Conclusion
Prominently, investors while investing in mutual funds, need to ensure their discipline towards their investment. Also, they must invest in the long-term. Investors remember it doesn’t matter how slow you go, as long as you do not stop!
Keep investing in mutual funds via SIP to achieve your goal!!
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For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).