SIPs (Systematic Investment Plans) came into existence in India almost 20 years back. This concept was introduced in India by Franklin Templeton. Since the time of its inception, the SIPs have been successful in generating higher returns as well as in creating great wealth for the investors. The SIPs offer an easy and disciplined way of accumulating wealth over a longer period of time.
Benefits of SIPs
There are great benefits offered by the lucrative schemes of the Systematic Investment Plans (SIPs). Here are some of them:
- The biggest benefit offered by the SIPs is that these make the need of predicting the market quite irrelevant. It is quite impossible to predict the market in terms of the exact financial conditions in the upcoming times. SIPs tend to function greatly even in volatile markets. This is done by averaging the overall cost of the invested amount.
- SIPs implement a disciplined approach towards investing. As the investors invest a fixed amount of money every month out of the regular savings, the investors are able to develop a corpus for the long-term financial goals.
- The mutual fund SIPs tend to be highly flexible instruments. There are no penalties or restrictions on the regular payments of the SIPs as well as with respect to the withdrawals.
- For any investor, the SIPs serve as transparent mediums of investments as the investors are able to select the products based on their risk-taking capability, fund objectives, track record and so more.
Performance of the SIPs Over Last 15 Years
Here are some of the leading names in the field of mutual fund SIPs and their performance record in the span of last 15 years. Have a look:
- ICICI Prudential Top 100 Fund: Within the scheme of ICICI Prudential, the ICICI Prudential Dynamic Plan has given the highest annualized returns amongst all the large caps as well as the diversified equity funds over the period of last ten years. The ICICI Prudential Top 100 Fund –a large cap fund that was launched in 1998, has offered excellent returns over the last 15 years. The fund generates an AUM base of approximately 450 crores INR and is managed by Sankaran Naren.
- SBI Magnum Multiplier Plus Fund: This is a diversified equity fund that was launched in 1993. This lucrative fund has an AUM base of more than 1000 crores INR and is managed by Jayesh Shroff. As per the estimates, if you would make an investment into this fund, then over the 15 period time, the compounded annual returns on the SIP investment would be around 18.1 percent.
- Franklin India Bluechip Fund: This is a large cap fund that was launched in 1993. It has been for long a favorite amongst the investors. As proclaimed by many financing experts, this fund has been rated as the best ever mutual funds. It has a current AUM of approximately 4000 crores INR and is managed by Anand Radhakrishnan. If you are thinking of investing into this fund, then your compounded annual returns over the period of 15 years would be around 18.7 percent.
- Birla Sun Life Equity Fund: This is a diversified equity fund that was launched in 1998. This SIP fund had an AUM of around 650 crores INR and is managed by Anil Shah. This fund has been ranked as number 2 by CRISIL. If you would be investing into this effective SIP mutual fund, then the compounded annual returns over a period of 15 years would be around 20 percent.
You can use this SIP calculator which will help you estimate wealth creation by making SIP investment in a fund of your choice for the investment period specified.
Make the most of your SIP investment!