Top Performing SIP Mutual Funds-2018

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Top Performing SIP Mutual Funds-2018

Every mutual fund investor knows that a Systematic Investment Plan or SIP is the best way to invest in equity mutual funds to create wealth over a long period. Apart from investing regularly, it also imparts financial discipline in the lives of investors.

AMFI data clearly shows that SIPs have been gaining popularity among mutual fund investors. The mutual fund industry had added about 9.26 lakh SIP accounts each month on an average during the FY 2017-18, with an average SIP size of about Rs 3,300 per SIP account. At present, mutual funds have about 1.80 crore SIP accounts. Mutual funds collected a sum of Rs 6,222 crore through SIPs during December 2017.

Increasing awareness and popularity of SIPs made us look at the equity schemes which have multiplied investors' money over the period. For this purpose we looked at the equity schemes including largecap, midcap, multicap and Equity Linked Saving Schemes (ELSS). We took out those schemes which have generated the maximum returns when invested via SIP, for investors both in five-year and 10-year periods (See table below).

Top SIP Performers

Please note, the past performance does not guarantee future performance. However, it gives you an idea about the long-term record of a scheme.

How it is been done?

We started with a list of equity schemes including largecap, midcap, multicap and equity Linked Saving Schemes(ELSS) which were at least 10 years old. Then, we excluded schemes which had assets lower than Rs 500 crore as on December 31, 2017. Next, we calculated average internal rate of return (IRR) for each category separately. Then, we filtered all those schemes which generated an IRR above the category's average.

We performed this exercise on both five-year period and 10-year period. Five-year period ranges from February 2013 to January 2018, which makes 60 monthly instalments in total. 10-year period begins from February 2008 and ends in January 2018, thus a total of 120 monthly SIP instalments. SIP date assumed was 1st of every month. We used Ace Mutual Fund database for the data.
After all the filters and calculations, we took out schemes which exceeded the category average XIRR in both the five-year and 10-year period in each category. This gives us the top SIP performers. 

Source : ET

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