Home / Money / Personal Finance /  Mutual Fund Calculator: 10,000 monthly SIP turns to 7.5 lakh in 3 years
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One investment choice for long-term investors willing to take on risk and seek for returns that outperform inflation over the long term is equity mutual funds. Even while financial gurus advise investing in equity mutual funds for more than five years, funds might provide huge gains in the short term depending on the condition of the market. For instance, the Quant Small Cap Fund Direct Plan-Growth has grown from a monthly SIP of 10,000 to 7.5 lakh over the course of three years as the fund has generated a whopping return of over 54% in the last 3 years.

Quant Small Cap Fund Direct Plan-Growth Returns

Quant Small Cap Fund Direct Plan-Growth returns over the past year have been 12.24%, and since its debut the fund has generated a yearly average return of 15.48%. If a monthly SIP of 10,000 had been put into this fund five years ago, it would now have grown to around 14 lakh because the fund's five-year return of 34.71% was better than the category average of 23.27%. A monthly SIP of 10,000 invested into this fund three years ago would now have grown to around 7.5 lakh, as the fund has produced an annualised return of 54.13% over the past three years, which is higher than the category average of 34.50%.

The fund has produced an annualised return of 36.68% over the past two years, meaning that an investment of 10,000 per month invested in the fund two years ago would currently be worth around 3.55 lakh. According to the results, the fund is indicating that it has doubled the investors' money invested in it every two years. The fund has a benchmark index of Nifty Smallcap 250 TRI, and the index has gained over 7% in 1 year, much lower than the fund’s annualized return of 12%.

Key takeaways of Quant Small Cap Fund Direct Plan-Growth

The fund was launched on 01-January-2013 and currently, the fund holds a 4-star rating from Value Research and a 5-star rating from Morningstar. As of June 30, 2022, Quant Small Cap Fund Direct Plan-Growth has assets under management (AUM) totalling 1910.75 Crores, and as of August 24, 2022, the fund's NAV was 136.5. The expense ratio for the fund is 0.62%, which is lower than that of the majority of other funds in the same category. The consumer goods, services, healthcare, financial, and construction industries are all represented in the sector allocation of the fund. ITC Ltd., IRB Infrastructure Developers Ltd., ICICI Bank Ltd., Hindustan Copper Ltd., and Linde India Ltd. are the top 5 holdings of the fund. 

The fund invests 99.25% of its investments in domestic equities, with 23% of that amount invested in large-cap companies, 8.18% in mid-cap stocks, and 68.07% in small-cap stocks. The fund has a standard deviation of 23.93 which is higher than the category average of 20.03 and the fund has a beta ratio of 0.92 which is higher than the category average of 0.81 which indicates that the fund appears to be riskier. However, the fund's Sharpe ratio is 1.5 points higher than the category average of 1.08, and its Jension's Alpha ratio is 17.08 points higher than the category average of 6.94, indicating that although the fund entails a higher level of risk, it also has a higher potential to produce risk-adjusted returns.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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