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ET Wealth Mutual Fund

Five mutual funds that have beaten peers on SIP charts

Investments into equity mutual funds through systematic investment plans (SIP) have picked up sharply over the last five years with many new investors coming in. The mutual fund industry has 3.04 crore SIP accounts and is adding 9.81 lakh SIP accounts on an average every month in 2019-20. Close to Rs 8,500 crore comes into equity schemes every month through SIPs.

According to a report by NJ Wealth, the average SIP return for a basket of 139 diversified equity mutual funds over a two-year period is 7.52%; while for a five-year period it is 8.59%. ET takes a look at five equity fund schemes that stayed ahead of the pack and where investments through SIPs have delivered a 14% CAGR over the last five years.

 

IIFL Focused Equity

Fund manager: Mayur Patel

Assets under management: Rs 661 cr

Top-three holdings: ICICI Bank, Axis Bank, HDFC Bank

Top-10 holdings (%): 53.61%

Category: Focused

5-year SIP return: 14.43%

2-year SIP return: 20.75%

 

The fund manager adopts a bottom-up multi-cap strategy to build a concentrated portfolio of highconviction stocks. It follows a SCDV framework (Secular, Cyclical, Defensives, Value Trap) wherein it invests 40-60% of portfolio in high-quality secular growth companies which are long-term compounding stories. The balance portfolio is invested across quality cyclicals and defensives while avoiding value traps. The fund manager is overweight financials and bullish on retail credit, consumer discretionary and healthcare.