5 Top Performing Equity Mutual Fund SIPs 

Hello everyone

I am Divya Grover here to help you take informed mutual fund investment decisions.

Systematic Investment Plan also known as SIP in mutual funds have emerged as a preferred choice for investors aiming for wealth creation through equities.

Investing in mutual funds SIP works just like recurring deposits (RD) with a bank, where you deposit a fixed sum of money regularly.

The only difference here is that your money is deployed in a mutual fund scheme of your choice.

So, just like little drops of water make a mighty ocean, small yet regular investments via the SIP can help you accumulate a significant corpus to meet your various financial goals.

In today's video, we will look at the top-performing SIPs across prominent equity mutual fund categories such as Large Cap Fund, Mid Cap Fund, Small Cap Fund, Flexi Cap Fund, and Value Fund.

We have shortlisted these schemes based on their 10-year SIP performance i.e. the extended internal rate of return also known as XIRR.

The XIRR helps you evaluate mutual fund returns when there are multiple transactions taking place within a particular time frame such as in the case of SIP investments.

#1 Nippon India Small Cap Fund

Nippon India Small Cap Fund is the largest scheme in the Small Cap Fund category having a corpus of about Rs 630 billion.

Launched in September 2010, it aims to identify small-sized companies with high-growth potential that are available at relatively attractive valuations.

In the last 10 years, Nippon India Small Cap Fund grew at an XIRR of 24.7% compared to 19.4% XIRR in its benchmark Nifty Smallcap 250 - TRI.

A monthly SIP of Rs 10,000 in the fund over a 10-year period, meaning, a total investment of Rs 1.2 million, would now be valued at Rs 4.4 m.

Nippon Small Cap Fund holds a large portfolio of over 200 stocks and it has restricted allocation in each stock to 2% or less to reduce the downside risk.

Its top holdings include a mix of large-cap, mid-cap, and small-cap names such as HDFC Bank, Multi Commodity Exchange of India, Kirloskar Brothers, Tube Investments of India, and SBI.

The fund's focus on picking quality, high-conviction companies having strong business models and available at reasonable valuations that has enabled it to reward investors with superior risk-adjusted returns.

#2 Motilal Oswal Mid Cap Fund

Incepted in February 2014, Motilal Oswal Midcap Fund aims to create alpha through a portfolio of quality mid-sized companies available at a fair price.

The fund invests in a concentrated portfolio of about 35 stocks, which reflects a high-conviction portfolio strategy.

In the last 10 years, Motilal Oswal Mid Cap Fund grew at an XIRR of about 23.6% compared to around 20.9% XIRR in its benchmark Nifty Midcap 150 - TRI.

A monthly SIP of Rs 10,000 in the fund over a 10-year period would now be valued at Rs 4.2 m.

Motilal Oswal Midcap Fund's stock holdings witness frequent changes but it has shown high conviction in some of its top holdings.

The fund is currently bullish on Coforge, Persistent Systems, Kalyan Jewellers India, Polycab India, and Bharti Hexacom.

Though the fund's agile strategy can result in higher volatility, the fund has managed to reward investors with superior risk-adjusted returns.

#3 Parag Parikh Flexi Cap Fund

Launched in May 2013, Parag Parikh Flexi Cap Fund is a value-biased scheme within the Flexi Cap Fund category.

The fund aims to build a high-potential portfolio of reasonably priced stocks to benefit from the available opportunities across sectors.

The fund also offers geographical diversification to its investors by holding a substantial portion of its portfolio in select global corporations.

In the last 10 years, Parag Parikh Flexi Cap Fund grew at an XIRR of 20.8% compared to 16% XIRR in its benchmark Nifty 500 - TRI.

A monthly SIP of Rs 10,000 in the fund over a 10-year period would now be valued at Rs 3.6 m.

Its top holdings comprise mainly large-cap names such as HDFC Bank, Bajaj Holdings & Investment, Coal India, Power Grid Corporation of India, and ICICI Bank.

Among its overseas allocation, the fund holds exposure in tech giants such as Facebook (Meta), Alphabet Inc, Microsoft Corp, and Amazon.com.

Parag Parikh Flexi Cap Fund employs a buy-and-hold investment strategy, allowing it to fully realise the value of each of its portfolio holdings.

#4 JM Value Fund

Initially launched as a sectoral Fund in June 1997, JM Value Fund was recategorised and renamed in 2018.

It now focuses on investing in stocks whose value have not yet been recognised by the market despite their strong fundamentals.

While the past performance of the fund is not directly comparable due to the change in investment mandate, JM Value Fund has registered commendable growth in recent years.

In the last 10 years, JM Value Fund grew at an XIRR of 19.8% compared to 16% XIRR in the Nifty 500 - TRI.

A monthly SIP of Rs 10,000 in the fund over a 10-year period would now be valued at Rs 3.4 m.

JM Value Fund tactically allocates assets across the large-cap, mid-cap, and small-cap segments, depending on the market conditions.

The fund currently holds higher allocation to ICICI Bank, HDFC Bank, Godfrey Phillips India, Suzlon Energy, and L&T.

JM Value Fund's dynamic investment approach and substantial exposure to lower market cap stocks have enabled it to generate high alpha amid the recent market rally.

#5 Nippon India Large Cap Fund

Launched in August 2007, the Nippon India Large Cap Fund initially targeted investments in both large and mid-cap stocks, focusing on the top 200 companies.

In 2018, it was reclassified as a Large Cap Fund to meet regulatory guidelines.

In the last 10 years, Nippon India Large Cap Fund grew at an XIRR of 17.9% compared to 14.7% XIRR in the Nifty 100 - TRI.

A monthly SIP of Rs 10,000 in the fund over a 10-year period would now be valued at Rs 3.1 m.

The fund's top stock holdings include large-cap index heavyweights, while in terms of sectoral exposure it is inclined towards banking & finance.

Its top holdings include HDFC Bank, Reliance Industries, ICICI Bank, Axis Bank, and L&T.

Nippon India Large Cap Fund has benefitted by identifying high-growth-potential stocks using a 'Growth At Reasonable Price' strategy and by avoiding chasing of market trends.

To Conclude

This completes the list of top-performing mutual fund SIPs.

SIPs of mutual funds are a sensible choice for creating wealth over the long term.

However, one should ideally avoid shortlisting schemes for SIP solely based on its past performance because past performance is rarely an indicator of future returns.

Ideally, one should adopt a holistic approach to selecting schemes. This involves ensuring that you only pick schemes that align with your investment objectives and risk tolerance.

Choose schemes that have consistently performed well compared to the benchmark and peers and also fare well in terms of risk-adjusted returns.

Happy Investing!

Please note that this video is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund.

Returns mentioned herein are in no way a guarantee or promise of future returns.

For more guidance on mutual fund investments, subscribe to our YouTube channel.

If you like this video, please give a thumbs up and share it with your friends and relatives.

Signing off for now.

Happy Investing.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.