3 five-star rated equity funds turn SIP of ₹10,000 to over ₹9 lac in 3 years

When it comes to equity mutual funds, investors should think about investing for the long term rather than simply seeking higher returns due to the risk involved. Equity mutual funds are ideal for investors with a long-term investment perspective of at least 5 years, investors aiming for capital appreciation, and investors with a deep understanding of the market. However, before you invest in mutual funds, you should be in tune with your investment horizon and risk profile. Stock mutual funds are a great way to diversify your portfolio, and the best part is that stock funds have proven the ability to provide alpha and inflation-beating returns for investors who adhere to the investment cost averaging strategy. the rupee Here, we have used three 5-star rated stock mutual funds as an example, which have converted a monthly SIP of $10,000 to more than $9 lakh in just three years.

Quantitative tax plan – Direct Plan

The fund was established on January 1, 2013 and has a 5-star rating from Value Research and Morningstar. Consequently, this fund is valid for more than nine years. As of June 30, 2022, Quant Tax Plan Direct-Growth had assets under management (AUM) of Rs. 1787.29 crore and as of 16th September 2022 the net asset value of the fund was Rs. 269.23. The fund’s expense ratio of 0.57% is lower than most other ELSS funds. According to Value Research data, the fund has produced an annualized return of 47% over the last three years. As a result, if an investor had made an initial investment of $1 lakh and a monthly SIP investment of $10,000 three years ago, the total value of your investment over the past three years would have been $10,05,531.

The fund has generated an absolute return of 17.83 over the past year, outperforming both its benchmark and its category average return. The fund is compared to the S&P BSE 500 TRI. The fund allocates money to the services, consumer goods, materials, financial and construction sectors. Ambuja Cements Ltd., State Bank of India, ITC Ltd., Larsen & Toubro Ltd., Adani Ports and Special Economic Zone Ltd. are the top 5 holdings in the fund. In domestic equities, the fund has an exposure of 96.12%, of which 64.81% are large-cap companies, 20.2% are mid-cap stocks and 11.11% are small-cap stocks. capitalization.

Bank of India Small Cap Fund – Direct Plan

The fund was introduced on December 19, 2018 and at this time Value Research has given it a 5-star rating. This fund has been operational for three years. As of June 30, 2022, Bank of India Small Cap Fund Direct – Growth had assets under management (AUM) at $Rs 353.51 crore and as of 16th September 2022 the fund’s NAV was $01.29. The fund’s expense ratio is 1.12%, higher than most other funds in the same category. According to Value Research data, the fund has generated an annualized return of 43.25% over the last 3 years. The total value of the investor’s investment over the past three years would have been $9,45,874 if he had invested $1 lakh in advance and $10,000 through a systematic investment plan every month three years before.

The fund is benchmarked against the S&P BSE 250 SmallCap TRI and, over the past year, the fund generated an absolute return of 7.33% higher than the category average return of 5.90% and the return of the 2.68%. The capital goods, financial, materials, chemical and automotive industries are the focus of the fund’s sector allocation. ICICI Bank Ltd., Timken India Ltd., City Union Bank Ltd., Home First Finance Company India Ltd. and Phoenix Mills Ltd. are the top 5 holdings in the fund. 95.48% of the fund’s investments are in domestic stocks, of which 5.73% are large-caps, 20.5% mid-caps and 69.25% small-caps. Government securities represent 0.04% of the fund’s investment in debt.

Canara Robeco Small Cap Fund – Direct Plan

The fund was introduced on February 15, 2019 and at this time Value Research has given it a 5-star rating. This fund has been operating for more than 3 years. Assets Under Management (AUM) for Canara Robeco Small Cap Fund Direct – Growth were $3455.06 Cr Crores as of June 30, 2022, while the fund’s NAV was $26.9 on September 16, 2022. The fund’s expense ratio is 0.47%, which is lower than the average of most other funds in its category. If an initial or initial investment of $1 lakh and a monthly SIP of $10,000 had been made three years ago, it would have grown to $9,82,585 now thanks to the fund’s annualized return of 45.46%.

The fund has produced an absolute return over the last year of 10.52%, higher than the category average of 5.90% and the benchmark of 2.68%. The fund is benchmarked to the S&P BSE 250 SmallCap TRI. The fund’s top five holdings are City Union Bank Ltd., Schaeffler India Ltd., Can Fin Homes Ltd., Grindwell Norton Ltd. and Cera Sanitaryware Ltd. The fund has a sector allocation towards services, financials, capital goods, materials and construction industries. The fund invests 93.73% in domestic stocks, of which 6.48% are large-caps, 20.65% are mid-caps, and 66.6% are small-caps.

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