In Mutual funds give great returns, we spoke about the performance of 34 mutual funds. These funds existed for the past 10 years and hence were selected for this analysis.
1. The returns are shown over a 10-year period: July 1995 to June 2005.
2. Three types of funds are analysed:
- Diversified equity funds: funds that invest in the shares of companies of various sectors.
- Equity Linked Saving Schemes: diversified equity funds with a tax benefit.
- Balance funds with an equity tilt: funds that invest in shares of various companies as well as in fixed-return investments.
3. The returns are annualised, meaning these are the returns you would get every year.
4. Since a Systematic Investment Plan requires you to make an investment every single month, the amount is assumed as constant all through the 10-year period.
Diversified equity funds
|
|
10-year return (%) |
SIP return (%) |
|
Franklin India Prima |
22.16 |
35.78 |
|
HDFC Equity |
23.76 |
33.22 |
|
Franklin India Bluechip |
24.21 |
31.43 |
|
Franklin India Prima Plus |
22.99 |
30.22 |
|
Birla Advantage |
23.79 |
26.16 |
|
HDFC Capital Builder |
15.43 |
24.54 |
|
Prudential ICICI Power |
15.02 |
23.80 |
|
Magnum Global |
13.53 |
22.98 |
|
Tata Growth |
10.02 |
22.71 |
|
Canexpo |
15.77 |
21.90 |
|
Morgan Stanley Growth |
16.22 |
20.35 |
|
Taurus Starshare |
8.67 |
19.93 |
|
GIC Fortune '94 |
7.89 |
18.16 |
|
UTI Master Growth |
11.78 |
17.40 |
|
GIC Growth Plus II |
12.46 |
17.14 |
|
Magnum Multiplier Plus |
10.16 |
16.87 |
|
UTI Grandmaster |
9.47 |
16.87 |
|
Magnum Equity |
11.68 |
16.60 |
|
Taurus Discovery Stock |
2.67 |
16.26 |
|
Unit Scheme '92 |
10.61 |
15.84 |
|
UTI Equity |
8.63 |
15.56 |
|
J M Equity |
8.11 |
14.81 |
|
UTI Master Plus '91 |
9.23 |
14.32 |
|
Principal Equity |
8.43 |
14.20 |
|
UTI Mastershare |
8.11 |
13.20 |
|
LICMF Growth |
-2.08 |
10.35 |
|
LIC MF Equity |
1.70 |
9.25 |
Equity Linked Saving Schemes
|
|
10-year return (%) |
SIP return (%) |
|
Magnum Taxgain |
20.28 |
29.29 |
|
Canequity-Tax Saver |
9.84 |
13.03 |
Balanced funds
|
|
10-year return (%) |
SIP return (%) |
|
Alliance '95 |
28.18 |
29.38 |
|
HDFC Prudence |
22.95 |
28.17 |
|
UTI Balanced |
21.19 |
22.24 |
|
J M Balanced |
15.04 |
18.13 |
|
GIC Balanced |
8.03 |
12.61 |
As can be seen from the performance figures, the SIP has delivered better returns than a lump-sum investment.
