Best Mutual Fund SIP: The analysis found that the “Quant Small Cap Fund” was the most successful mutual fund, yielding a compound annual growth rate (CAGR) of 24.56% over a ten-year period.
In recent years, SIP investing in mutual funds has become increasingly popular in India. Every month in April 2016, Rs 3,122 crore was invested through SIP; today, that amount has risen to Rs 26,000 crore. In other words, within the past few years, there has been a growth of over eight times.
The main reason for this is actually its simplicity—investing a set sum each month without worrying about market developments. This is the reason why small investors and the middle class now choose it first.
44 lakh fund created through SIP
Financial data indicates that an investor’s investment could have reached Rs 44 lakh today if he had made a SIP of Rs 10,000 per month for the previous ten years. Over the past ten years, a number of leading equities mutual funds have provided an annual return (CAGR) of over 20 percent.
These top 10 funds gave the best SIP returns
‘Quant Small Cap Fund’ was the best mutual fund among them, according to the Financial Express survey, with a compound annual growth rate (CAGR) of 24.56% over a ten-year period. Quant ELSS Tax Saver Fund (21.74 percent) and Nippon India Small Cap Fund (22.93 percent) came next. In addition to ranking third, the Quant ELSS Tax Saver Fund provided an annual return of 21.74 percent.
Midcap funds dominate
The midcap market was likewise dominated by quant funds. The Quant Mid Cap Fund has produced a 21.60 percent yearly return. With a 21.47 percent return, the Motilal Oswal Midcap Fund has done well. In addition, infrastructure funding was not behind schedule.
Additionally, infrastructure-focused funds have done well. Of them, the ICICI Prudential Infrastructure Fund has produced a 21.37 percent yearly return. On the other hand, the Franklin Build India Fund and the Invesco India Infrastructure Fund have likewise provided yearly returns of 20.60 and 20.67 percent, respectively. With an annual return of 20.38 percent, the Nippon India Growth Fund has placed among the top 10 funds.
Caution and patience required
According to financial experts, SIP is not a strategy that guarantees returns. It is undoubtedly impacted by market volatility, but over time, these swings average out, offering higher potential rewards.
Who should do SIP?
For people who can invest for a long time and have a steady income, SIP is thought to be preferable. For young individuals, those in the workforce, and those aiming to achieve significant financial objectives, SIP is a prudent choice.
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