How Different Equity Funds Created Wealth through Mutual Fund SIPs in the Last 10 Years?

ALEXAugust 21, 2023

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SIPs or Systematic Investment Plans are the preferred investment options for mutual fund investors. Investing in a SIP mutual fund enables investors to generate high returns in the long term. Over the last ten years, equity funds have generated significant SIP returns, making them the top-performing schemes for investors. Let’s explore how different equity funds have created wealth through SIP mutual funds in the last ten years.

Top-Performing SIP Mutual Funds in the Last Ten Years

These are some of the top-performing SIP mutual funds in the last ten years:

Axis Gold Fund: It is one of the top-performing mutual fund schemes based on ten-year SIP returns. For instance, if you invested ₹ 1,00,000 in this plan with monthly SIPs of ₹ 10,000 for ten years, it must have become ₹ 21,19,501 by now at 8.78%. With such a high XIRR, it has been one of the most beneficial SIP plans for investors.

Quant Tax Plan: It is a top-performing SIP mutual fund equity scheme that invests at least 80% of the assets in equity and related instruments to generate returns. It comes under the category of ELSS, a tax-saving mutual fund that also helps save money with tax benefits. It has rendered an XIRR of 23.8%. That means if you invested ₹ 1,20,000 for ten years with monthly SIPs of ₹ 1,000, you will receive ₹ 4,21,877 at maturity.

Quant Flexi Cap Fund: This equity mutual fund invests at least 65% of its assets in equity and related instruments. It gives investors the flexibility to put their money across market caps. Generating an XIRR of 21.78%, ₹ 1,20,00 becomes ₹ 3,78,845 with monthly SIPs of ₹ 1,000 for ten years.

Kotak Emerging Equity Fund: It is a mid-cap SIP mutual fund investing at least 65% of its assets in equity and related instruments of medium-sized companies. Based on 10-year SIP returns, ₹ 1,20,000 generates an XIRR of 20.43% to become ₹ 3,52,307 with monthly SIPs of ₹ 1,000.

Mirae Asset Emerging Bluechip Fund: This equity mutual fund invests at least 35% of its assets in equity and related instruments of mid and large-cap stocks. With an XIRR of 20.26% in the last ten years, it turns ₹ 1,20,000 into ₹ 3,49,004 with monthly SIPs of ₹ 1,000.

Bandhan Sterling Value Fund: It is a value mutual fund that invests at least 65% of its assets in equity and related instruments with a value-oriented approach. It is a top-performing mutual fund scheme delivering ten-year SIP returns at the XIRR of 18.45%. The fund can convert ₹ 1,20,000 into ₹ 3,16,472 with a monthly SIP of ₹ 1,000.

Nippon India Large Cap Fund: Investing at least 65% of its assets in equity and related instruments of large-cap companies, it is a top-performing SIP mutual fund delivering SIP returns at 16.28% of XIRR. Invest ₹ 1,000 per month up to ₹ 1,20,000 to generate the value of ₹ 2,81,611.

Please note that different categories of SIP mutual funds have unique working mechanisms. Therefore, comparing their returns would be unfair. Market conditions fluctuate, affecting returns over time. Also, remember that a mutual fund’s past performance does not indicate future returns. It depends on the market conditions and fund performance.

Benefits of Mutual Funds SIPs

SIP mutual funds work similarly to recurring accounts in banks, except that the returns are much superior. Over the last ten years, they have benefitted investors in multiple ways, including the following:

No need to time the market, as SIPs perform well in volatile market conditions with investment cost averaging
Helps inculcate a disciplined approach by investing a fixed monthly amount to build a corpus and meet financial needs
Provides flexibility for the SIP amount, frequency, and withdrawal
Freedom to select a SIP mutual fund according to risk profile, investment objectives, and track record
Equity-linked saving schemes are tax efficient, making capital gains tax exempt

Considering the robust performance of SIP mutual funds in the last ten years, it’s worth investing in SIP mutual fund schemes and starting to build wealth now. Find the best-performing schemes at present and put your hard-earned money in the right place. Open a Demat and trading account today to compare the various mutual fund schemes available out there and start online trading without any hassle.