[ad_1]
Equity mutual funds have established themselves as one of the finest investment categories for producing the highest long-term returns. Equity funds are excellent for long-term objectives since they have exposure to stock markets and the potential to generate wealth over the long term. Equity mutual funds come in a range that investors may choose from. The investor’s investment objective, risk tolerance, and timeframe should all be taken into consideration while selecting a plan. Equity funds give investors the ease of starting a SIP while enabling them to participate in a diversified portfolio that is exposed to various sectors and has been shown to produce better inflation-adjusted returns over time. Here, we’ve used as an example two equity funds that were given a 5-star rating by Value Research and produced a return of more than ₹9 lakhs over the course of three years against a monthly SIP of ₹10,000.
Canara Robeco Small Cap Fund – Direct Plan
Canara Robeco Small Cap Fund Direct – Growth has been in existence for 3 years and 8 months being established on 15 February 2019. As of September 30, 2022, Canara Robeco Small Cap Fund Direct – Growth had assets under management (AUM) at ₹3,767 Crores, and as of October 28, 2022, the fund’s NAV was ₹26.17. Canara Robeco Small Cap Fund Direct’s growth returns over the past year have been 12.70%, and since its launch, it has generated returns that are on average 29.68% per year.
As per the Value Research’s data, Canara Robeco Small Cap Fund Direct – Growth has turned an upfront investment of ₹1 lakh with a monthly SIP of ₹10,000 to ₹9.22 lakh in 3 years. This similar investment pattern has generated a return of ₹2.41 lakh in the last 1 year. The sectors of services, economics, capital goods, materials, and construction are where the fund has the majority of its investments. City Union Bank Ltd., Schaeffler India Ltd., Cera Sanitaryware Ltd., Indian Hotels Co. Ltd., and Century Textiles & Industries Ltd. are the top 5 holdings of the fund. A total of 94.43% of the fund’s assets are allocated to equity, of which 7.3% are invested in large-cap stocks, 21.74% in mid-cap stocks, and 65.39% in small-cap companies.
Quant Tax Plan – Direct Plan
A ELSS mutual fund programme from Quant Mutual Fund, Quant Tax Plan Direct-Growth was introduced in March 2000. As of September 30, 2022, Quant Tax Plan Direct-Growth has ₹1,943 crores in assets under management (AUM), and as of October 28, 2022, the fund’s NAV was ₹267.6. Since its introduction, the Quant Tax Plan Direct-Growth has generated returns of an average of 21.64% per year, and 16.91% during the past year. As per Value Research’s data, Quant Tax Plan – Direct Plan has turned an upfront investment of ₹1 lakh with a monthly SIP of ₹10,000 to ₹44.43 lakh in 9 years.
An upfront investment of ₹1 lakh with a monthly SIP of ₹10,000 made in this fund has generated a return of 16.47 lakh in 5 years. This same investment strategy has given a return of ₹9.38 lakh in the last 3 years and ₹2.52 lakh in the last 1 year. The consumer staples, services, financial, materials, and energy sectors are where the fund has the majority of its investments. Ambuja Cements Ltd., ITC Ltd., Adani Ports and Special Economic Zone Ltd., State Bank of India, and Patanjali Foods Ltd. are the top 5 holdings of the fund. The fund invests 99.98% of its assets in equity, with 71.3% of those funds invested in large-cap stocks, 19.78% in mid-cap stocks, and 8.9% in small-cap firms.
Download The Mint News App to get Daily Market Updates.
[ad_2]
Source link
