Chart of best SIP returns in IT, small and mid-cap mutual funds
Out of a total of 263 equity mutual funds, up to 25 funds generated returns greater than 20%, 158 generated between 15 and 20% and 64 generated returns between 10 and 15%. SIPs performed in 16 yielded less than 10% returns, while the value of three schemes eroded. PSU banks, international funds, sector funds and some thematic funds are the ones that have been underperforming.
Financial planners say that while some themes have outperformed, investors are better off holding the best performing diversified equity mutual funds, where returns are less volatile, as part of their core portfolio. “Investors should allocate around 50% to large / index / flexi-cap funds, 30% to mid / small cap funds and 20% to international / sector / thematic funds, when performing SIPs over a period of 10 years, ”says Harshvardhan Roongta, Chartered Financial Planner, Roongta Securities.