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SIP of Rs 10,000 in this fund turns to Rs 14 lakh in 5 years, check details

A long-term SIP is advised when investing in mutual funds since it allows one to comprehend the market more thoroughly.

Updated : Aug 29, 2022, 05:16 PM IST | Edited by : Maitry Kothari

SIP of Rs 10,000 in this fund turns to Rs 14 lakh in 5 years, check details

A long-term SIP is recommended when investing in mutual funds, because it enables one to better understand the market and build wealth despite short-term volatility. Therefore, investing for a longer period of time will likely result in superior risk-adjusted returns, say financial experts. As a result, your mutual funds will consistently compound more, helping you meet your long-term objectives. You can always think of investing in equity mutual funds for a long term objective. Here is an example of an equities mutual fund with a 5-star rating that, over the course of five years, increased a monthly SIP of Rs 10,000 into more than Rs 14 lakh.

Growth Returns for Quant Small Cap Fund Direct Plan

Quant Small Cap Fund Direct Plan-Growth has received the highest ratings from Morningstar (5-Star), Value Research (4-Star), and CRISIL (1-Star). Quant Small Cap Fund Direct Plan-Growth has produced an average return of 15.52% each year since its debut, including 11.84% during the prior year.

In the last 5 years, the fund has generated a SIP return of 34.84% higher than the category average of 23.51% which means that if a monthly SIP of ₹10,000 invested in this fund 5 years ago would now have grown to Rs 14.02 Lakh approx. In the last 3 years the fund has generated a SIP return of 54.24% much higher than the category average of 34.80%, hence if an investor had started a SIP of Rs 10,000 3 years ago in this fund, then it would now have turned to Rs 7.50 lakh approx.

With a return of 36.64% over the past two years, the fund, a monthly SIP of Rs 10,000 began two years ago, would now have grown to almost Rs 3.55 lakh.

History and facts about the Growth Quant Small Cap Fund Direct Plan

The fund was established on January 1, 2013, and as of June 30, 2022, it managed Rs 1,911 crores in assets. As of August 26, 2022, the fund's NAV is Rs 137.01. The consumer goods, services, healthcare, finance, and construction sectors are all represented in the fund, which has an expense ratio of 0.62%. The top 5 holdings of the fund are ITC Ltd., IRB Infrastructure Developers Ltd., ICICI Bank Ltd., Hindustan Copper Ltd., and Linde India Ltd.

Domestic equities make up 99.25% of the fund's assets, of which 23% are in large-cap firms, 8.18% in mid-cap firms, and 68.07% in small-cap businesses. The fund's generation Alpha ratio of 17.08, which is higher than the category average of 6.94, shows that the managers were able to produce superior returns that were risk-adjusted above those predicted by the capital asset pricing model. With a Sharpe Ratio of 1.5 compared to the category average of 1.08, the fund has outperformed its peers in terms of producing risk-adjusted gains.

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SIP of Rs 10,000 in this fund turns to Rs 14 lakh in 5 years, check details

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