6 out of 192 equity mutual funds gave double-digit annualized returns. Most equity fund SIPs have delivered single digit annualized returns in five-year period. Only six equity mutual fund schemes managed to generate double-digit returns in the same period.
The six schemes that managed to deliver double digit annualised returns are- Parag Parikh Long Term Equity Fund (12.89%), Axis Bluechip Fund (10.93%), IIFL Focused Equity Fund (10.92%), Axis Midcap Fund (10.56%), Mirae Asset Emerging Bluechip Fund (10.56%) and Canara Robeco Bluechip Equity Fund (10.42%).
We have assumed five-year SIP returns under direct plan of the schemes. The data was sourced from Value Research and the returns are as on July 19.
Mutual Funds Give Returns
Average 5-year SIP return of large cap mutual funds stood at 5.38%. Top three schemes in the category are Axis Bluechip Fund, Canara Robeco Bluechip Fund and BNP Paribas Large Cap Fund. Their five-year SIP returns stood at 10.93%, 10.42% and 7.75% respectively.
Large & Mid cap category gave an average return of 4.30%. The five-year SIP toppers are Mirae Asset Emerging Bluechip Fund (10.56%), Quant Large and Mid Cap Fund (7.76%) and Canara Robeco Emerging Equities Fund (7.47%).
Mid cap toppers are Axis Midcap Fund (10.56%), DSP MidcapFund (7.22%) and Invesco India Mid Cap Fund (7.12%). Average return generated by the mid cap funds in the last five years was 3.37%. 15 out of 21 schemes gave negative returns.
Multi cap mutual funds gave an average return of 4.74%. The toppers include- PPFAS Long Term Equity Fund, IIFL Focused Equity Fund and Axis Focused 25 Fund (9.36%).
Small cap funds were the worst hit. 10 out of 14 small cap funds delivered negative 5-yr SIP returns. The outliers were Axis Small Cap Fund (7.34%), SBI Small Cap Fund (7.06%).
Low returns at this point is the cause of worry for those who have their goals approaching. That is why financial planners suggest to start moving out of equities 2-3 years before your goal and freeze the returns gradually.
Mutual fund advisors advise to continue with their SIPs as they will buy more units at cheaper rates now. The experts are of the view that the market is restore back to the pre-COVID levels.
Source: Live Mint
Net inflows in Mutual funds fell by 95% in Q1 FY21.
