If you are looking for a way to grow your wealth in the long term, you might want to consider investing in equity mutual funds through SIPs or systematic investment plans. SIPs allow you to invest a fixed amount of money every month in a mutual fund scheme of your choice, regardless of the market conditions. This way, you can benefit from the power of compounding and rupee cost averaging and achieve your financial goals with discipline and patience.
But which equity mutual fund schemes should you invest in? There are hundreds of schemes available in the market, each with different objectives, strategies, and risk-return profiles. How do you choose the best ones for your portfolio?
To help you with this decision, we have compiled a list of 10 SIPs that made equity mutual fund investors rich in the last 10 years. These are the schemes that offered the highest returns among all pure equity schemes such as large cap, mid cap, small cap, large & mid cap, multi cap, and flexi cap schemes. We calculated the XIRR returns for the period starting from April 10, 2013, to April 10, 2023. Here are the results:
| Scheme Name | Corpus created by Rs 10,000 monthly SIP in 10 years | XIRR returns |
|---|---|---|
| Nippon India Small Cap Fund | 3,328,529 | 22.1% |
| SBI Small Cap Fund | 3,061,447 | 21.14% |
| Quant Active Fund | 3,010,899 | 19.68% |
| Quant Flexi Cap Fund | 3,348,340 | 19.57% |
| Quant Small Cap Fund | 3,812,375 | 19.43% |
| Kotak Small Cap Fund | 3,621,851 | 18.43% |
| Mirae Asset Emerging Blue-chip | 3,304,305 | 18% |
| DSP Small Cap Fund | 3,132,585 | 17.93% |
| Kotak Emerging Equity Fund | 3,050,339 | 17.69% |
| HDFC Small Cap Fund | 2,982,787 | 17.51% |
As you can see from the table above, six out of the top 10 schemes belong to the small cap category. This means that they invest predominantly in stocks of companies with small market capitalization. These stocks are very risky and volatile, but they also have the potential to offer superior returns over a long period of time. indeed, performance record of these schemes in the last decade proves that they indeed can create wealth for investors who have a high-risk appetite and a long investment horizon.
The other four schemes belong to different categories such as multi cap (Quant Active Fund), flexi cap (Quant Flexi Cap Fund), large & mid cap (Mirae Asset Emerging Blue-chip), and mid cap (Kotak Emerging Equity Fund). These schemes are relatively less risky than small cap schemes as they invest in a mix of stocks across different market capitalizations. However, they still have a significant exposure to mid-cap stocks which are also risky and volatile but marginally more stable than small cap stocks.
These schemes are suitable for aggressive investors who can tolerate high fluctuations in their portfolio value and who are looking for higher returns than large cap schemes.
Note that these schemes are not recommendations or endorsements from us. They are just examples of how SIPs can help you create wealth over time if you invest in equity mutual funds that match your risk profile and investment horizon. You should always do your own research and analysis before choosing any scheme for your portfolio.
We hope this article has given you some insights into how SIPs can make you rich in equity mutual funds. If you have any questions or comments, please feel free to share them below.
