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Five mutual funds that have beaten peers on SIP charts

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 Bureau|
Last Updated: Feb 21, 2020, 10.33 AM IST
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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%.
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.

Axis Bluechip
Fund manager: Shreyash Devalkar
Assets under management: Rs 11,077 crore
Top-three holdings: HDFC Bank, Bajaj Finance, Kotak bank
Top-10 holdings (%) : 62.36%
Category: Large Cap
5-year SIP return: 14.23%
2-year SIP return: 15.47%

A core large cap holding for many retail investors the scheme has been one of the best performers in the largecap space. The fund with a focus on giant Indian corporates, sticks to highgrowth quality companies which can constantly innovate and are sustainable with good governance. Some cash holding in portfolio, overweight financials like Bajaj Finance, Kotak Bank have helped it deliver stellar performance.

Axis Focused 25
Fund manager: Jinesh Gopani
Assets under management: Rs 9,627 crore
Top-three holdings: Bajaj Finance, Kotak bank, Bajaj Finserv
Top-10 holdings (%) : 63.08%
Category: Focused
5-year SIP return: 14.5%
2-year SIP return: 14.27%

The fund manager takes concentrated bets with the top 10 stocks accounting for as high as two-thirds of the portfolio. Buying high-growth companies with an eye on quality and good corporate governance has paid off for the scheme with the market rewarding them very well. Staying away from PSUs has helped the fund outperform. The scheme has comfortably beaten its peers and its benchmark, over the last five years, topping category charts.

Mirae Asset Emerging Blue Chip Fund
Fund manager: Ankit Jain and Neelesh Surana
Assets under management: Rs 9,806 cr
Top-three holdings: HDFC Bank, ICICI bank, SBI
Top-10 holdings (%) : 39.32%
Category: Large & Midcap
5-year SIP return: 14.78%
2-year SIP return : 13.59%

One of the flagship schemes of the fund house, investors can participate in the fund only in a staggered manner as the scheme does not accept lump sum investments. The scheme has been a steady performer consistently outperforming its rivals over a seven year period. The scheme allocates equally to large and midcap stocks and currently has 52% in large caps and 48% in midcaps. The fund manager has a well diversified portfolio buying quality companies at reasonable valuations.

SBI Focused Equity
Fund manager:
R Srinivasan
Assets under management: Rs 7,694 crore
Top-three holdings: HDFC Bank, Bharti Airtel, P&G Hygiene
Top-10 holdings (%) : 55.31%
Category: Large Cap
5-year SIP return: 13.78%
2-year SIP return: 15.01%

One of the early focused equity funds, that picks up stocks across market capitalisation with strong conviction, financial planners recommend it as part of core portfolio. The portfolio is well diversified with 64% in large caps, with the balance spread across mid- and small-caps. Currently, the fund manager is marginally underweight financials and overweight FMCG when compared to the benchmark. It has comfortably beaten its benchmark and is ahead of its peers across time frames of 1, 3, 5 and 10 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.

SOURCE: SIP Watch, NJ Wealth, Feb 2020
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