These equity mutual funds turn monthly SIP of ₹10,000 to ₹6 lac in 3 years
A long-term investment is always advised for equity funds when it comes to generating good returns because they have the potential to create long-term wealth.
PremiumA long-term investment is always advised for equity funds when it comes to generating good returns because they have the potential to create long-term wealth and invest at least 65 per cent of their portfolio in equity and equity-linked securities. Equity mutual funds are a great investment option for capital appreciation and considering the erratic nature of the stock market, long-term investors should hold equity mutual funds for a minimum of five years in order to get returns that outperform the market. However, you must be extremely aware of your risk tolerance, time frame, and goals while investing in equity funds. Since long-term investment in equity mutual funds is always significant, we've chosen two equity mutual funds as examples below that turned a monthly SIP of ₹10,000 over ₹6 lakhs in just three years.
PGIM India Midcap Opportunities Fund - Direct Plan
The fund was launched on 02-December-2013 and currently, the fund holds a 5-star rating from Value Research. As of June 30, 2022, PGIM India Midcap Opportunities Fund Direct-Growth had assets under management (AUM) at ₹5168.64 Crores, and as of August 2, 2022, the fund's NAV was ₹48.28. The fund's 0.45% expense ratio is lower than that of the majority of other funds in the same category. Since its introduction, the PGIM India Midcap Opportunities Fund Direct-Growth has generated returns of an average of 19.91 per cent per year, and 10.96 per cent during the past year.
A monthly SIP of ₹10,000 that was begun three years ago would now have grown to around ₹6.24 lakh thanks to the fund's 41.76 per cent returns over the past three years. A monthly SIP of ₹10,000 that was begun 5 years ago has now grown to ₹12.21 Lakh thanks to the fund's 19.92 per cent returns over the past 5 years. A monthly SIP of ₹10,000 would now have risen to 19.29 Lakh due to the fund's 16.42 per cent returns over the past seven years.
The fund’s top sector allocation is diversified across Financial, Capital Goods, Automobile, Healthcare, Materials industries. TVS Motor Co. Ltd., ABB Ltd., Timken India Ltd., HDFC Bank Ltd., and Varun Beverages Ltd. are the fund's top 5 holdings. The fund invests 91.44% of its assets in domestic equities, of which 11.02% are large-cap companies, 61.64% are mid-cap stocks, and 19.28% are small-cap stocks.
Quant Infrastructure Fund
The fund was introduced on August 31, 2007, and Value Research currently rated it as 5 stars. As of June 30, 2022, Quant Infrastructure Fund Direct-Growth has assets under management (AUM) totalling Rs. 539.75 crores. As of August 2, 2022, the fund's NAV was Rs. 22.76. The fund's expense ratio of 0.64 per cent is lower than that of the majority of other funds in its category.
Quant Infrastructure Fund Direct-Growth returns over the past year have been 21.95 per cent, and since its inception, it has returned 16.50% on average annually. A monthly SIP of ₹10,000 initiated three years ago would now have grown to about ₹6.78 Lakh due to the fund's 38.00 per cent returns over the previous three years. A monthly SIP of ₹10,000 initiated 5 years ago would now have grown to over ₹12.73 Lakh thanks to the fund's 21.61 per cent returns over the previous 5 years.
Since the fund has returned 17.15% over the past seven years, a monthly SIP of ₹10,000 would now be worth around ₹20.25 lakh. A monthly SIP of ₹10,000 initiated 10 years ago would now have grown to around ₹35.40 Lakh due to the fund's 15.68 per cent return over the past 10 years. The fund has sector allocation across Services, Construction, Financial, Metals & Mining, Energy Industries and Larsen & Toubro Ltd., State Bank of India, Adani Enterprises Ltd., Ambuja Cements Ltd., Adani Ports and Special Economic Zone Ltd are the top 5 holdings of the fund. The fund invests 98% of its assets in domestic equities, of which 59.22% are large-cap companies, 19.47% are mid-cap companies, and 20.13% are small-cap companies.
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