Power of SIPs: Top 6 Mutual Funds where monthly SIP of Rs.1,000 Convert to Crores Over the Years
A systematic investment plan in mutual funds will convert small and regular investments into sizeable wealth over some time. Since the beginning of mutual fund houses in India, starting with SBI, the industry has grown to 44 mutual fund houses managing more than 1,600 schemes as of July 31, 2024, according to SEBI.
This article lists the best six mutual funds on the basis of annualized SIP return and lump sum return and explains how a monthly SIP of Rs.1,000 has grown into wealth from the inception of every fund.
Nippon India Growth Fund
Nippon India Growth Fund was launched in October 1995 and has managed to generate 23.81% as its annualised SIP return and 23.13% as its lump sum return. This is a fund of its kind, with an AUM of Rs.32,971 crore and a NAV of Rs.4,088.2636. The return for this fund is unprecedented in its category. A monthly SIP of Rs.1,000, since inception, totals to Rs.3,36,000 in 28 years, which has grown to Rs.2,23,72,796 at the current level. The minimum investment in this fund is Rs.100.
Franklin India Prima Fund
Franklin India Prima Fund, introduced in December 1993, has provided annualised SIP returns of 21.52% whereas the lump sum returns stand at 20.04%. The fund with an AUM size of Rs.12,529 crore and NAV size of Rs.3,075.5827 follows NIFTY Midcap 150 TRI as its benchmark. A monthly SIP of Rs.1,000 since inception with a total investment of Rs.3,60,000 has appreciated to Rs.2,14,34,686 over the 30-year period. It needs a minimum SIP investment of Rs.500 and a minimum lump sum investment of Rs 5,000.
HDFC ELSS Tax Saver Fund
HDFC ELSS Tax Saver Fund, launched in March 1996 has given annualized returns of SIP 22.97% and lump sum 23.95%. The Scheme has a corpus of Rs.16,145 cr with the current NAV of Rs.1,362.6380. It is benchmarked against NIFTY 500 TRI. A monthly SIP of Rs..1,000 in the scheme, amounting to a total of Rs.3,36,000 over a period of 28 years, has appreciated to Rs.1,90,72,879. The minimum SIP and minimum lump sum investment in the scheme are Rs.500.
HDFC Flexi Cap Fund
Launched in January 1995, the annualized SIP return of HDFC Flexi Cap Fund is 21.9%, while the lump sum return is 19.28%. The AUM of the fund is Rs.61,572 crore, while its NAV is Rs.1,871.3090. The minimum investment in the fund is Rs.100 and it is benchmarked against the NIFTY 500 TRI. A monthly SIP of Rs.1,000, translating to Rs.3,48,000 in 29 years, has grown to Rs .1,89,90,296.
Franklin India Flexi Cap Fund
Franklin India Flexi Cap Fund has returned 20.84% as annualized SIP returns and 18.59% as lump sum returns since its launch in September 1994. The fund has a huge AUM of Rs.17,417 crore with an NAV of Rs.1,646.7727. It is benchmarked against the NIFTY 500 TRI. A monthly SIP of Rs.1,000 since its inception has grown to Rs.1,54,01,951. The minimum investment for SIP is Rs.500, and the minimum investment in the case of a lump sum investment is Rs.5,000.
Aditya Birla MNC Fund
Aditya Birla MNC Fund was launched in April 1994. The annualized return on SIP investment is 19.44%, whereas for a lump sum, it is 17.71%. The AUM of this fund stands at Rs.4,124 crore, and the NAV is Rs.1,412.3000. Benchmarking the fund against the NIFTY MNC TRI, the minimum SIP investment in the fund is Rs.100, while the minimum lump sum investment is Rs.1,000. The Rs.1,000 monthly SIPs invested in the fund since inception, for 30 years, aggregating to a cost of Rs.3,60,000, has appreciated to Rs.1,39,54,324.
Conclusion
These top-performing mutual funds make it loud and clear that the power of disciplined and long-term investing through SIPs is great. Starting with just Rs.1,000 a month, investors have made small investments consistently into crores over several decades and demonstrated how big one can make with mutual funds.
