The Association of Mutual Funds in India (AMFI) reported in its monthly industry report that systematic investment plan (SIP) accounts reached an all-time high of 5.54 crore as of June 30, 2022. According to AMFI data, SIP assets under management (AUM) were Rs 5.51 lakh crore as of June 2022, while 17.92 lakh SIPs were registered in that same month. Despite volatile stock markets, Systematic investment plan (SIP) monthly contributions reached an all-time high of Rs 12,976.3 crore in September as per the data published by the Association of Mutual Funds in India (AMFI). This compares to the previous month’s SIP investment of Rs 12,693.4 crore.
Significantly, favorable equity inflows persisted over the month. In September, overall equity inflows increased by 130 percent to Rs 14,099.73 crore, compared to Rs 6,119.58 crore in August. SIP contributions are at an all-time high of Rs 12,976.34 crore every month, the biggest amount ever recorded. It is expected that the monthly contributions will surpass Rs 13,000 crore in the coming months.
This clearly shows how investment via the SIP route has gained popularity among new investors. Therefore, let’s divulge into the know-how of the Systematic Investment Plan.
What is SIP?
A systematic Investment Plan is the full version of SIP for mutual funds. It is neither a class of assets nor a financial instrument. In truth, it is one of the ways to invest in mutual funds. Therefore, SIP refers to the regular, disciplined investing of a defined amount of money in mutual funds. Depending on the financial objectives, SIP allows investors to invest a defined amount of money on a regular basis in multiple mutual fund schemes. Through Systematic Investment Plan, investors have the opportunity to develop long-term wealth by investing a little sum of money. The Systematic Investment Plan strategy is suitable for individuals with consistent cash flow or a stable income. For instance, if someone intends to save Rs. 5.40 lakhs in three years for a trip abroad. By initiating a Rs. 15,000 monthly SIP investment, they can easily reach their objective.
Systematic Investment Plan is the greatest strategy to develop the habit of routinely saving and investing. In addition, if investors begin the Systematic Investment Plan early, they will have a longer investment horizon to take advantage of compounding. In addition, a SIP investment eliminates market timing. Due to rupee cost averaging, SIP investments are less susceptible to market volatility. When markets are strong, fewer units are purchased compared to when markets are weak.
List of Top Equity Mutual Funds Schemes in 2022 (as per 3-year return)
- Large-Cap Equity Mutual Funds
| Scheme | NAV (INR) | 3-Year Return | AUM (INR) (Cr) |
| Canara Robeco Bluechip Equity Funds | 46.08 | 18.22% | 8,311 |
| IDBI India Top 100 Equity | 44.46 | 18.11% | 619.46 |
| Nippon India Large Cap Fund | 58.91 | 17.82% | 12,323.68 |
| Kotak Bluechip Fund | 416.32 | 17.34% | 5,099 |
| UTI Mastershare Fund | 206.01 | 17.18% | 10,554 |
- Mid-Cap Equity Mutual Funds
| Scheme | NAV(INR) | 3-Year Return | AUM (INR) (Cr) |
| PGIM India Midcap Opportunities Fund | 49.64 | 39.31% | 7,162 |
| Quant Mid Cap Fund | 142.42 | 37.77% | 910 |
| SBI Magnum Midcap Fund | 161.85 | 30.44% | 8,319 |
| Edelweiss Mid Cap Fund | 59.27 | 28.19% | 2,346 |
| Mirae Asset Midcap Fund | 22.56 | 28.07% | 8,629 |
Source: AMFI (data as of 20/10/2022)
Closer Look at the Top SIP Mutual Funds
Large Cap Funds
- Canara Robeco Bluechip Equity Fund
Canara Robeco Bluechip Equity mutual Funds Direct-Growth is a Large Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, Canara Robeco Bluechip Equity Fund Direct-Growth has 8,311 Crores in assets under management (AUM) and is a medium-sized fund within its category. The fund’s expense ratio of 0.38% is comparable to that of most other Large Cap funds.
-
- The 1-year returns for the Canara Robeco Bluechip Equity Fund Direct-Growth were -3.19%. Since its inception, it has generated average annual returns of 14.61 percent. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are allocated to the Financial, Technology, Consumer Staples, Energy, and Automobile sectors. It has less exposure to the Financial and Technology sectors than other funds in the same category.
-
- ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and State Bank of India are the top five holdings of the fund.
- IDBI India Top 100 Equity
Idbi Mutual Fund’s IDBI India Top 100 Equity Mutual Funds Direct-Growth is a Large Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. IDBI India Top 100 Equity Mutual Funds Direct-Growth has INR 619.46 Crores in AUM as of 20 October 2022 and is a minor fund within its category. The fund has a higher expense ratio than the majority of other Large Cap funds, at 1.26 percent.
-
- The 1-year returns for the IDBI India Top 100 Equity Mutua Funds Direct-Growth were -1.72 percent. Since its inception, it has generated average yearly returns of 14.04 percent. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are invested in the Financial, Technology, Automobile, Energy, and Services industries. It has less exposure to the Financial and Technology sectors than other funds in the same category.
-
- ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., State Bank of India, and Infosys Ltd. are the top five holdings of the fund.
- Nippon India Large Cap Fund
The Nippon India Large Cap Fund Direct-Growth is a program of the Nippon India Mutual Fund’s Large Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, Nippon India Large Cap Fund Direct-Growth has INR 12,323.68 Crores in assets under management (AUM) and is a medium-sized fund within its category. The fund’s expense ratio of 1.0% is greater than the expense ratios of most other Large Cap funds.
-
- The one-year returns for the Nippon India Large Cap Fund Direct-Growth were 4.56 percent. Since its inception, it has generated average annual returns of 15.22%. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are invested in the Financial, Services, Technology, Consumer Staples, and Energy industries. It has less exposure to the Financial and Services sectors than other funds in the same category.
-
- Housing Development Finance Corpn. Ltd., Larsen & Toubro Ltd., State Bank of India, Reliance Industries Ltd., and ICICI Bank Ltd. are the top five holdings of the fund.
- Kotak Bluechip Fund
Kotak Bluechip Fund Direct-Growth is a Kotak Mahindra Mutual Fund Large Cap mutual fund plan. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, Kotak Bluechip Fund Direct-Growth has INR 5,099 Crores in assets under management (AUM) and is a medium-sized fund within its category. The fund’s expense ratio of 0.68 percent is greater than that of the majority of other Large Cap funds.
-
- The returns of the Kotak Bluechip Fund Direct-Growth during the past year were -3.25 percent. Since its inception, it has generated average annual returns of 14.36%. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are invested in the Financial, Technology, Automobile, Energy, and Consumer Staples industries. It has less exposure to the Financial and Technology sectors than other funds in the same category.
-
- ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., and Larsen & Toubro Ltd. are the top five holdings of the fund.
- UTI Mastershare Fund
UTI Mastershare Direct-Growth is a scheme of UTI Mutual Fund’s Large Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, UTI Mastershare Direct-Growth has INR 10,554 Crores in assets under management (AUM) and is a medium-sized fund within its category. The fund’s expense ratio of 1.03% is greater than that of the majority of other Large Cap funds.
-
- The returns for UTI Mastershare Direct-Growth over the past year were -4.12%. Since its inception, it has generated average yearly returns of 13.74 percent. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are invested in the Financial, Technology, Automobile, Services, and Healthcare industries. It has less exposure to the Financial and Technology sectors than other funds in the same category.
-
- ICICI Bank Ltd., Infosys Ltd., Housing Development Finance Corpn. Ltd., Bharti Airtel Ltd., and Reliance Industries Ltd. are the top five holdings of the fund.
Mid-Cap Funds
- PGIM India Midcap Opportunities Fund
PGIM India Midcap Opportunities Fund Direct-Growth is a Mid Cap mutual fund. This fund has existed for 8 years and 11 months, having been established on 11/11/2013. The PGIM India Midcap Opportunities Vehicle Direct-Growth has INR 7,162 Crores in AUM as of 20 October 2022 and is a medium-sized fund within its category. The fund’s expense ratio of 0.38% is lower than that of the majority of other Mid Cap funds.
-
- The one-year returns for the PGIM India Midcap Opportunities Fund Direct-Growth were 3.18 percent. Since its inception, it has generated average annual returns of 19.75%. Every two years, the fund has quadrupled the money put in it.
-
- The majority of the fund’s assets are allocated to the Capital Goods, Financial, Services, Consumer Discretionary, and Automobile sectors. It has less exposure to the Capital Goods and Financial sectors than other funds in the same category.
-
- TVS Motor Co. Ltd., Indian Hotels Co. Ltd., ICICI Bank Ltd., ABB India Ltd., and Timken India Ltd. are the top five holdings of the fund.
- Quant Mid Cap Fund
Quant Mid Cap Fund Direct-Growth is a mutual fund from Quant Mutual Fund that invests in mid-cap companies. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, Quant Mid Cap Fund Direct-Growth has INR 910 Crores in assets under management (AUM) and is a minor fund within its category. The expense ratio of the fund, at 0.63%, is comparable to that of the majority of Mid Cap funds.
-
- Quant Mid Cap Fund Direct-Growth has returned 15.04% annually over the past year. Since its inception, it has generated average annual returns of 17.01%. Every two years, the fund has quadrupled the money put in it.
-
- The majority of the fund’s assets are invested in the Services, Consumer Staples, Automobile, Financial, and Technology industries. It has a smaller allocation to the Services and Consumer Staples sectors than other funds in its category.
-
- The top five holdings of the fund consist of Escorts Kubota Ltd., Patanjali Foods Ltd., Punjab National Bank, Adani Ports and Special Economic Zone Ltd., and Zee Entertainment Enterprises Ltd.
- SBI Magnum Mid Cap Fund
SBI Magnum Mid Cap Direct Plan-Growth is a Mid Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, SBI Magnum Mid Cap Direct Plan-Growth has an AUM of INR 8,319 Crores and is a medium-sized fund within its category. The expense ratio of the fund is 1.0%, which is greater than most other Mid Cap funds.
-
- In the past year, SBI Magnum Mid Cap Direct Plan-Growth has generated returns of 9.81%. Since its inception, it has generated average yearly returns of 19.60%. Every two years, the fund has quadrupled the money put in it.
-
- The majority of the fund’s assets are invested in the Automobile, Capital Goods, Financial, Services, and Chemicals industries. It has less exposure to the Automobile and Capital Goods industries than other ETFs in its category.
-
- TI Financial Holdings Ltd., Page Industries Ltd., Crisil Ltd., Schaeffler India Ltd., and Sheela Foam Ltd. are the top five holdings of the fund.
- Edelweiss Mid Cap Fund
Edelweiss Mid Cap Direct Plan-Growth is a Mid Cap mutual fund. This fund has existed for nine years and nine months, having been established on January 1, 2013. As of 20 October 2022, Edelweiss Mid Cap Direct Plan-Growth has INR 2,346 Crores in assets under management (AUM) and is a medium-sized fund within its category. The fund’s expense ratio of 0.49% is lower than that of the majority of other Mid Cap Equity Mutual Funds.
-
- The returns on the Edelweiss Mid Cap Direct Plan-Growth during the past year were 3.83 percent. Since its inception, it has generated average yearly returns of 20.87%. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are invested in the Financial, Capital Goods, Automobile, Chemicals, and Materials industries. It has less exposure to the Financial and Capital Goods sectors than other funds in the same category.
-
- ABB India Ltd., Cummins India Ltd., Federal Bank Ltd., Trent Ltd., and Cholamandalam Investment & Finance Co. are the top five holdings of the fund. Ltd..
- Mirae Asset Midcap Fund
Mirae Asset Midcap Fund Direct-Growth is a Mid Cap mutual fund product offered by Mirae Asset Mutual Fund. This fund has existed for three years and three months, having been established on July 8, 2019. As of 20 October 2022, Mirae Asset Midcap Fund Direct-Growth has INR 8,629 Crores in assets under management (AUM) and is a medium-sized fund within its category. Its expense ratio of 0.65% is comparable to that of the majority of Mid Cap Equity Mutual Funds.
-
- The growth returns of the Mirae Asset Midcap Fund Direct during the past year were 2.37 percent. Since its inception, it has generated average yearly returns of 28.65%. Every three years, the fund has doubled the money invested in it.
-
- The majority of the fund’s assets are allocated to the Financial, Automobile, Healthcare, Materials, and Consumer Discretionary sectors. It has less exposure to the Financial and Automotive sectors than other funds in its category.
-
- The top five holdings of the fund are Federal Bank Ltd., TVS Motor Co. Limited, Axis Bank Limited, Bharat Forge Limited, and Shriram Transport Finance Company. Ltd.
Conclusion
SIP investments with compounding are intended for the long term. The term of investment is more important than the money invested. The monthly investments in a SIP continue to compound over time to provide significantly greater returns. Even if anybody has very limited finances, it is recommended that they begin investing in mutual funds through SIP as soon as possible.
FAQ
-
Which is a better option FD or SIP?
Compared to FD, generally, SIP is a superior investment alternative. This is due to the fact that SIPs provide better investment flexibility, diversification, tax advantages, and higher returns. Despite the fact that SIPs do not guarantee returns like FDs, they have the potential to create substantial returns over time.
Interested in how we think about the markets?
Read more: Zen And The Art Of Investing
Watch/hear on YouTube:
Start investing through a platform that brings goal planning and investing to your fingertips. Visit Kuvera.in to discover Direct Plans and Fixed Deposits and start investing today.
