Quant Mid Cap Fund offered a XIRR of 29.42% and increased investors’ wealth by 2.03 times. The scheme is benchmarked against Nifty Midcap 150- TRI. The benchmark offered 25.19% during the same time period.
Quant Tax Plan gave a XIRR of around 29.06% on investment made through SIP in five-years. An SIP of Rs 1,000 made on August 10, 2018 would have now become Rs 1.20 lakh now. The scheme is benchmarked against Nifty 500 -TRI. The benchmark gave around 17.77% in five-years.
These schemes were from small cap, mid cap and ELSS category. Three small cap funds, one mid cap, and an ELSS fund managed double SIP investments in five years.
We considered large cap, mid cap, small cap, large & mid cap, multi cap, focused fund, value fund, contra fund, and ELSS categories. We did not consider flexi cap category as this category was introduced after recategorisation of mutual funds by Sebi. We only considered regular and growth option schemes. We considered XIRR on SIP investments. Around 154 schemes have completed five years in the market.
Note, the above exercise is not a recommendation. The main purpose of the exercise is to find which equity schemes doubled SIP investments in five years. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making investment decisions. Past performance of the scheme does not guarantee future performance.
Small cap schemes invest in very small companies or their stocks and are extremely risky. The small cap segment can be extremely volatile in the short term, but they have the potential to offer very high returns over a long period. Small cap schemes are recommended only to aggressive investors with a high-risk appetite and long investment horizon, say, around seven to 10 years. ETMutualFunds do not recommend small cap schemes to new and inexperienced investors.
Mid cap schemes are mandated to invest in companies that are between 101 and 250 in market capitalisation, as per SEBI norms. One should invest in these schemes only if they have very high risk tolerance, a longer investment horizon of, say, seven to 10 years. A longer investment horizon would help investors to navigate the volatility better.
Tax saving or ELSS schemes are recommended to investors who are looking to save taxes under Section 80C of the income tax Act. Investors can invest a maximum of Rs 1.5 lakh in these schemes and claim tax deductions on it in a financial year. ELSS funds come with a lock-in period of three years.
If you are looking for recommendations, see :
Best small cap mutual funds to invest in 2023
Best mid cap mutual funds to invest in 2023
Best tax saving mutual funds or ELSS to invest in 2023
