Equities reward patient investors who stick around for the long term. Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, said at the recently-held PMSBazaar’s PMS & AIF Summit in Mumbai that India ranked second and fifth among the top markets globally in terms of long-term returns (in USD term) for 20 years and 30 years respectively. Equity mutual funds have benefitted from India’s equity run. There are 31 equity diversified schemes (including tax-savings funds) that have completed 25 years, in the Rs 40-trillion Indian mutual fund (MF) industry. Here is the list of the top equity diversified funds that multiplied investors’ money by up to 28 times the amount invested via systematic investment plans (SIP) over the last 25 years. Note that past performance is not indicative of future results. (Source: ACEMF)
Nippon India Growth Fund
Nippon India Growth Fund (earlier known as Reliance Growth Fund) tops the list. The scheme has been managed as a midcap-oriented fund since its launch. Though it has put up an average show in recent years, it had once been a top performing scheme among its peers when it was managed by Sunil Singhania, the former head of equities at Nippon Mutual Fund (erstwhile Reliance Mutual Fund). An SIP in the fund with Rs 10,000 per month over the last 25 years would have generated a total corpus of Rs 8.9 crore. In other words, it would have multiplied the invested amount by 28 times. Returns have been measured using the Extended Internal Rate of Return (XIRR) method. An SIP started 25 years back would have given 22 percent return, as on November 22, 2022
Franklin India Prima Fund
Franklin India Prima Fund is India’s oldest private sector invested scheme. It has been managed with a mid-cap heavy portfolio since inception. R Janakiraman has been managing the scheme since 2008. A 25-year SIP in this scheme would have multiplied the invested amount by 23 times
HDFC TaxSaver
This largecap-oriented tax-saving scheme has not had an impressive track record in the recent period. However, it was one of the top performers in the category 10 years ago. It has multiplied the invested money by 23 times on SIPs contributed for the last 25 years. This scheme was earlier known as Zurich India Tax Saver
HDFC Flexi Cap Fund
HDFC Flexi Cap Fund (erstwhile HDFC Equity Fund) is a diversified equity fund, investing across stocks irrespective of market capitalisation. The money invested in the scheme through the SIP route has appreciated by as much as 22 times in the last 25 years
Franklin India Flexi Cap Fund
Earlier known as Franklin India Prima Plus, Franklin India Flexi Cap Fund has managed the portfolio with flexible allocation across market capitalisation. It has multiplied the invested money by 18 times on SIPs contributed over the last 25 years
HDFC Top 100 Fund
HDFC Top 100 Fund is now part of the large-cap fund category. Earlier known as HDFC Top 200 Fund, it was one of the flagship funds in the Indian MF industry that rewarded investors handsomely. Though the scheme delivered mediocre performance in recent years, its long-term performance has been noteworthy. Money invested in the scheme via the SIP route has appreciated by as much as 15 times in the last 25 years
Tata Mid Cap Growth Fund
Formerly called Tata Growth, Tata Mid Cap Growth Fund has been managed as a midcap-oriented scheme since its launch. Money invested in the scheme via the SIP route has appreciated by 15 times in the last 25 years
SBI Long Term Equity Fund
Earlier known as SBI Magnum Taxgain, SBI Long Term Equity Fund is an ELSS scheme managed with a flexicap orientation. Money invested in the scheme through the SIP route has appreciated by as much as 14.3 times in the last 25 years
DSP Flexi Cap Fund
DSP Flexi Cap Fund (formerly known as DSP BlackRock Equity fund) was once a value-oriented scheme. Currently, it follows a flexicap approach of investing across sectors and stocks. A 25-year SIP in this scheme would have multiplied the invested amount by 14 times
Tata Large & Mid Cap Fund
Earlier called Tata Equity Opportunities, Tata Large & Mid Cap Fund initially had sought tactical opportunities to benefit from special situations arising out of market, industry or stock-specific developments. Now, it is part of the Large & Midcap category. It has multiplied the invested money by 14 times on SIPs contributed over the last 25 years
Nippon India Vision Fund
Nippon India Vision Fund was previously called Reliance Vision and managed with a diversified portfolio. Though the scheme showed suboptimal performance in the recent years, its long-term performance has been noteworthy. It has multiplied by 14 times the amount invested via SIPs over the last 25 years
SBI Large & Midcap Fund
SBI Large & Midcap Fund (previously called SBI Magnum Multiplier Fund) managed its portfolio with a combination of largecap, midcap and smallcap stocks. Currently, it is part of the Large & Midcap Fund category investing at least 35 percent each in largecap and midcap stocks. A 25-year SIP in this scheme would have multiplied the invested amount by 13.7 times
Tata India Tax Savings Fund
Tata India Tax Savings has shown a solid long-term performance, though it posted mediocre returns in the recent past. It has multiplied the invested money by 13.4 times on SIPs contributed for the last 25 years
ICICI Pru Multicap Fund
Earlier known as ICICI Prudential Top 200 Fund, ICICI Pru Multicap Fund was managed with a flexicap approach since its launch. A 25-year SIP in this scheme would have multiplied the invested amount by 12.6 times
Aditya Birla SL Tax Relief ’96
Formerly known as Alliance Capital Tax Relief ’96, Aditya Birla SL Tax Relief ’96 has been managed with a flexicap approach of investing across stocks and sectors. It has multiplied the invested money by 12.3 times on SIPs contributed for the last 25 years
Disclaimer : This Report is for information purpose only, it’s not recommendation to anyone. Do ask your financial planner before investment in any of the schemes above.
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