Looking for a mutual fund scheme that could give you market-beating returns? Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
Quant Small Cap Fund(G) which predominantly invests in smallcap stocks has given extended internal rate of returns (XIRR) of 49% according to data sourced from Ace Equities, earning Rs 13 lakh on the total investment of Rs 6 lakh made between February 10, 2019 and February 10, 2024. Meanwhile, the CAGR returns stand at 59%.
The scheme which was launched on October 29, 1996 is benchmarked against Nifty Smallcap 250 - TRI and has given returns at an XIRR of 35% while at a CAGR of 40% during this period.
About the fund
The scheme falls under the Smallcap Fund category and has a nil lock-in period. The primary investment objective of the scheme is to offer capital appreciation and provide long-term growth opportunities by investing in a portfolio of small Cap companies.
The mutual fund scheme allocates a minimum of 65% of equity and equity related instruments of small cap companies with smallcap allocation going up to 100%. Depending upon the market situation the fund may also allocate debt and money market securities which will not go beyond 35% of the total assets. The scheme also allows units issued by REITs and InvITs with a cap of 10% of the total assets.
New investors can invest with an amount of Rs 5,000 and any amount thereafter while for existing investors, Rs 1,000 and any amount thereafter is allowed. For Systematic Investment Plan (SIP), the minimum amount is Rs 1,000 and in multiples of Re 1 thereafter.
While mutual funds investment is a passive way of taking exposure to stock markets, it does not come without risk even though it is managed by professional fund managers.
According to Ace Equities, the adjusted net asset value (NAV) stands at Rs 266.23
The fund managers are Ankit Pande, Vasav Sahgal and Sanjeev Sharma.
Also Read: Top 5 equity mutual funds that have outperformed benchmarks. Check details
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
FAQs
Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
What is the SIP of 10,000 per month for 20 years? ›
Which investment strategy will help build Rs 1 crore corpus?
| Rs 10,000 SIP/month |
|---|
| Time-period | Total investment | Returns (12%) |
|---|
| 20-years | 24,00,000 | 75,91,479 |
| 25-years | 30,00,000 | 1,59,76,351 |
| 30-years | 36,00,000 | 3,16,99,138 |
3 more rowsMar 16, 2024
A Rs 10,000 monthly SIP in the fund for 5 years, or a total of Rs 6 lakh investment, will be now worth Rs 14,48,231, offering an annualised return of 36.16 per cent.
How to make 1 crore in 5 years in SIP? ›
Kukreja says since debt funds usually generate lower returns than equity funds for investment horizons of 5 years or more. Thus, assuming an annualised returns of 7 per cent from debt funds, an investor would need to invest Rs 1.40 lakh per month through SIP to create a corpus of Rs 1 crore in 5 years.
What happens if you invest $1,000 a month for 20 years? ›
Investing $1,000 a month for 20 years would leave you with around $687,306. The specific amount you end up with depends on your returns -- the S&P 500 has averaged 10% returns over the last 50 years. The more you invest (and the earlier), the more you can take advantage of compound growth.
Is SIP risk free? ›
Although a SIP is safe, it is not entirely risk-free. So, before you start a SIP in the mutual fund of your choice, you need to be aware of the risks involved. Do note that most of the risks listed below are not entirely tied to the SIP itself, but often stem from the mutual fund schemes or the market in general.
Which SIP gives the highest return? ›
Top 10 equity mutual funds that gave highest SIP returns in last...
- 1/8. Chart Toppers. ...
- 2/8. Toppers from one fund house. ...
- 3/8. Nippon India Small Cap Fund. ...
- 4/8. The other two from Quant Mutual Fund. ...
- 5/8. Motilal Oswal Midcap Fund. ...
- 6/8. SBI Contra Fund. ...
- 7/8. HSBC Small Cap Fund. ...
- 8/8. Quant Large & Mid Cap Fund.
How To Get 12% Returns On Investment
- Stock Market (Dividend Stocks) Dividend stocks are shares of companies that regularly pay a portion of their profits to shareholders. ...
- Real Estate Investment Trusts (REITs) ...
- P2P Investing Platforms. ...
- High-Yield Bonds. ...
- Rental Property Investment. ...
- Way Forward.
Quant Flexi Cap Fund - Direct Plan - Growth
The fund at the top has given 39.61 per cent SIP returns (XIRR) in the five-year period. It has Rs 6,272.21 crore of assets under management (AUM), while its net asset value (NAV) is worth Rs 115.3467. The fund has a 0.59 per cent expense ratio.
What happens if I invest $1,000 in SIP for 20 years? ›
If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh. Hope that helps.
HDFC Small Cap Fund: The direct plan of this scheme has given 41.94% annualised returns in 3 years. Source: AMFI website data as on October 13, 2023. Source: AMFI website data as on October 13, 2023.
How much is $5000 for 5 years in SIP? ›
How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What happens if I invest 20 000 a month in SIP for 5 years? ›
Value of INR 20,000 per Month in SIP
If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.
How much to invest per month to become a millionaire in 5 years? ›
Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from $13,000 to $15,500 a month and invest it wisely enough to earn an average of 10% a year.
What is the SIP of 30000 per month for 5 years? ›
If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.
