A Systematic Investment Plan or SIP invests a fixed amount in a mutual fund every month. SIPs have become a hugely popular mode of investment with a monthly SIP flow of around Rs 8,000 crore in March 2019, accounting for almost 55% of total gross inflows into equity funds. Here is a list for top 5 SIPs in 2019:
|Fund Name||Category||3 Year Returns||5 Year Returns|
|Nippon India Small Cap Fund||Small Cap||8.16%||11.87%|
|L&T Midcap Fund||Midcap||8.61%||12.22|
|Kotak Standard Multicap Fund||Multicap||12.99%||12.78%|
|Invesco India Contra Fund||Contra||13.34%||12.95%|
|Axis Long Term Equity Fund||Tax Saver (ELSS)||15.84%||12.66%|
Source: Value Research, Data as on November 08, 2019
1. Nippon India Small Cap Fund
Category: Equity Small Cap
AUM: ₹8,114 crore (as on Nov 08, 2019)
Date of Inception: September 16, 2010 (Regular Plan)
The fund has consistently performed and outperformed its benchmark by a large margin. The fund has successfully implemented its return maximization mandate with returns of 11.87% over the past 5 years compared to 4.94% on its benchmark (S&P BSE Small Cap TRI).
The returns over the past 3 years at 8.16% also indicate outperformance (with benchmark returns at 2.16%). Since 2017, the fund has been managed by Samir Rachh who has more than 25 years of experience.
The fund has around 7% of its assets in large caps, 22% in mid caps and 71% in small caps. The fund managers’ responsive approach towards market risk and valuation makes this an attractive fund for investors.
Though higher exposure to small-cap stocks makes the fund prone to volatility, good stock selection and great management have successfully generated attractive returns. Since 2018 was not a great year for small and mid-cap stocks, this could be a good time to start investing in the fund from a valuation perspective.
Also Read: Best ELSS Funds for 2019
2. L&T Midcap Fund
Category: Equity Mid Cap
AUM: ₹5,831 crore (as on Nov 08, 2019)
Date of Inception: August 9, 2004 (Regular Plan)
This fund is a true stand-out in the mid cap space and consistently outperforming its benchmark S&P BSE Mid Cap TRI. The fund has provided returns of 12.22% over the past 5 years compared to 9.43% given by its benchmark (as of October 04, 2019).
The fund has allocated about 8% of its assets to large cap while a whopping 76% share has been allotted to midcaps. Small cap stocks have been given 16% asset allocation.
It has been jointly managed by Soumendra Nath Lahiri and Vihag Naik. With 82 stocks in its portfolio, the fund is well diversified. About 45% of its exposure is in the financial, construction and engineering sector. The fund is ideal for mid-cap investors seeking to lower risk but maximise gains by investing in mid-cap companies.
3. Kotak Standard Multicap Fund
Category: Equity: Multicap
AUM: ₹26,991 crore (as on Nov 08, 2019)
Date of Inception: September 11, 2009 (Regular Plan)
Kotak Standard Multicap Fund is the flagship scheme of Kotak AMC and the scheme that has brought fame to the AMC (Asset Management Company). It has delivered returns at 12.78% over the past 5 years, far above the 9.48% returns delivered by its benchmark S&P BSE 200 (as of November 08, 2019).
The fund has been managed by Harsha Upadhyaya since 2012. Harsha has swerved strongly towards large caps to shield investors from the volatility of 2018 and 2019, placing 78% of its assets in large cap.
It has another 20% of its assets in mid-caps and 2% in small caps which opens it up to growth opportunities in the mid cap space. The fund is also fairly diversified with as many as 51 stocks. Relatively cautious equity investors will find themselves well taken care of in this fund.
Also Read: All You Need to Know About ETF
4. Invesco India Contra Fund
Category: Contra Fund
AUM: ₹4,484 crore (as on Nov 08, 2019)
Date of Inception: April 11, 2007 (Regular Plan)
As the name suggests, Invesco India Contra Fund is mandated to follow a contrarian strategy – taking positions in stocks that are not generally favoured by the market. The fund has successfully implemented this mandate with returns of 12.95% over the past 5 years compared to 9.15% on its benchmark.
The returns over the past 3 years at 13.34% also indicate outperformance (with benchmark returns at 11.52%). Amit Ganatra has been managing the fund since 2012 and Taher Badshah was appointed as a co-fund manager in 2017. Both fund managers have a solid reputation in the market and are likely to keep generating exceptional returns.
The fund has around 67% of its assets in large caps, 27% in mid caps and 6% in small caps. Large exposure to large cap stocks makes the fund sturdy in times of uncertainty. The fund takes an outsized exposure to the financial sector than its benchmark while being underweight FMCG and Autos. The fund managers’ responsive approach towards market risk and valuation makes this an attractive fund for investors.
5. Axis Long Term Equity Fund
Category: Equity Tax Saver (ELSS)
AUM: ₹20,425 crore (as on Nov 08, 2019)
Date of Inception: December 29, 2009 (Regular Plan)
Axis Long Term Equity Fund has remained a market leader in the ELSS category of mutual funds both in terms of long term returns and AUM. From 5-year returns perspective, it has outperformed its benchmark and continues to beat its peers.
Being managed by Jinesh Gopani since its launch, the fund has given returns at 13.66% in last 5 years beating its benchmark S&P BSE 200 TRI by a significant margin.
The fund has allocated about 68% of the assets to large cap, 30% to mid cap and about 2% to small-cap stocks giving investors much comfort in terms of market volatility. With just 33 stocks in its portfolio and more than 41% allocation to the financial sector, it makes the fund very much concentrated.