Ten year SIP Return of Most Equity Mfs is now less than 10%

As on 9th April 2020, more than 90% of equity mutual funds now have a 10-year SIP return in single digits (before tax)!

Image of a spiral staircase to signify Ten year SIP Return of Most Equity Mfs is now less than 10%

Published: April 10, 2020 at 11:30 am

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This is a category-wise listing of 10-year equity mutual fund SIP returns as on April 9th 2020. Out of 241 funds studied, only 20 managed a double-digit return! The goal behind this listing is to appreciate the risks behind blind faith in the SIP without a portfolio de-risking plan.

Readers may recall even in Jan 2020 well before the start of the crash, we reported that Ten-year NIfty SIP Returns have decreased by almost 50% over the years and 15-year Nifty SIP returns have decreased by 25%. Therefore this listing should be of little surprise.

Naturally, this situation would change (for the better or worse) depending on day to day market movements as noted yesterday: 15-year Nifty SIP returns crash to 8% (51% reduction since 2014).

For example, there 20/241 funds with double-digit returns as on 9th April. Shift the valuation date to 7th April then it would be  11/241! Shift it to March 23rd – the day of biggest intraday fall when 10-year Nifty SIP Return became 2.3% – then we would have only two funds with double-digit returns.

What is the significance of double-digit (pre-tax) returns? Two words: Risk premium. The risk taken by an investor over the course of a ten-year SIP is tremendous compare the fixed income choices available in India. The compensation for that risk should be adequate – at the very least the lowest double-digit number.

Note:  1: These are not investment recommendations. This listing demonstrates the risk associated with a long-term SIP.

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2: Many funds have changed mandate over the last ten year period.  This may have contributed to their low or high returns. We are not sitting in judgement of the funds here.

3:  All funds are regular plan funds since direct plans did not exist 10 years ago. If one had switched to direct sometime in the middle, returns would be a touch better.

List of 20/241 funds with 10% or more returns (as on 9th April 2020)

CategoryScheme Name10Y XIRR(%)
Small cap FundSBI Small Cap Fund-Reg(G)14.99
Large & Mid CapCanara Rob Emerg Equities Fund-Reg(G)13.85
Equity Linked Savings SchemeAxis Long Term Equity Fund-Reg(G)12.69
Pharma & Health CareNippon India Pharma Fund(G)12.28
MNCAditya Birla SL MNC Fund-Reg(G)11.84
Focused FundSBI Focused Equity Fund-Reg(G)11.54
Thematic FundAditya Birla SL India GenNext Fund(G)11.47
Large & Mid CapPrincipal Emerging Bluechip Fund(G)11.46
FMCGICICI Pru FMCG Fund(G)11.29
Thematic FundCanara Rob Consumer Trends Fund-Reg(G)11.06
Mid Cap FundInvesco India Midcap Fund(G)10.83
MNCSBI Magnum Global Fund-Reg10.80
Mid Cap FundDSP Midcap Fund-Reg(G)10.72
Large & Mid CapQuant Large & Mid Cap Fund(G)10.54
MNCUTI MNC Fund-Reg10.53
Pharma & Health CareSBI Healthcare Opp Fund-Reg10.39
Large Cap FundAxis Bluechip Fund-Reg(G)10.29
Mid Cap FundEdelweiss Mid Cap Fund-Reg(G)10.10
Mid Cap FundKotak Emerging Equity Fund(G)10.04
Mid Cap FundL&T Midcap Fund-Reg(G)10.02

It is important to appreciate that only 20/241 funds have managed to provide some kind of risk premium to investors.  This is not of much use as could have never known which of the 241 funds would deliver in 2010 (or anytime before April 2020!)

Blindly doing a SIP in the hope things would become better in the long term essentially means leaving the fate of our financial goals with luck. Investors need to lower return expectations and craft a solid strategy to protect portfolios from market risk. This strategy has to be a lot more intelligent than this standard advisor manta: “invest 60-70% in equity and then reduce exposure in the last three years before you need money”.

Unless we have a de-risking strategy to gradually and continuously eliminate equity allocation from our portfolios, the amount we end up saving for our financial goals would be left to chance!

Ten Year SIP returns are listed below for each category. All returns are as of 9th April 2020.

Aggressive Hybrid Fund

Canara Rob Equity Hybrid Fund-Reg(G)9.65
SBI Equity Hybrid Fund-Reg9.47
ICICI Pru Equity & Debt Fund(G)8.47
DSP Equity & Bond Fund-Reg(G)8.19
Principal Hybrid Equity Fund(G)7.64
Franklin India Equity Hybrid Fund(G)7.00
Quant Absolute Fund(G)6.77
Tata Hybrid Equity Fund-Reg(G)6.47
Edelweiss Aggressive Hybrid Fund-Reg(G)5.75
Sundaram Equity Hybrid Fund(G)5.63
Aditya Birla SL Equity Hybrid ’95 Fund(G)5.60
Kotak Equity Hybrid Fund4.80
LIC MF Equity Hybrid Fund(G)4.67
UTI Hybrid Equity Fund-Reg(G)4.17
Baroda Hybrid Equity Fund(G)4.12
PGIM India Hybrid Equity Fund(G)3.82
HDFC Hybrid Equity Fund(G)3.76
Nippon India Equity Hybrid Fund(G)2.59
JM Equity Hybrid Fund(G)1.98

Equity Linked Savings Scheme

Axis Long Term Equity Fund-Reg(G)12.69
Invesco India Tax Plan(G)9.32
Aditya Birla SL Tax Relief ’968.82
BOI AXA Tax Advantage Fund-Reg(G)8.56
DSP Tax Saver Fund-Reg(G)8.55
BNP Paribas Long Term Equity Fund(G)8.43
Aditya Birla SL Tax Plan8.38
Canara Rob Equity Tax Saver Fund-Reg8.22
Tata India Tax Savings Fund-Reg(DP)7.96
JM Tax Gain Fund(G)7.39
Quant Tax Plan(G)7.23
Principal Tax Savings Fund7.22
Kotak Tax Saver Fund(G)7.01
ICICI Pru LT Equity Fund (Tax Saving)(G)6.90
LIC MF Tax Plan(G)6.49
HSBC Tax Saver Equity Fund(G)6.32
HDFC Long Term Adv Fund(G)6.12
Taurus Tax Shield Fund-Reg(G)6.00
L&T Tax Advt Fund-Reg(G)5.78
IDFC Tax Advt(ELSS) Fund-Reg(G)5.74
Edelweiss Long Term Equity Fund (Tax Savings)-Reg(G)5.64
UTI LT Equity Fund (Tax Saving)-Reg5.44
Franklin India Taxshield(G)5.44
SBI Long Term Equity Fund-Reg4.62
Quantum Tax Saving Fund(G)-Direct Plan4.37
Sundaram Diversified Equity3.80
HDFC TaxSaver(G)3.37
Principal Personal Tax saver Fund3.31
Nippon India Tax Saver (ELSS) Fund(G)3.24
Baroda ELSS 963.23

Index Funds

ICICI Pru Sensex ETF6.29
Kotak Sensex ETF6.09
Kotak Nifty ETF5.56
Nippon India ETF Nifty BeES5.54
Quantum Nifty ETF5.47
Kotak PSU Bank ETF-0.18
IDFC Nifty Fund-Reg(G)5.43
UTI Nifty Index Fund-Reg5.12
HDFC Index Fund-NIFTY 50 Plan(G)5.07
ICICI Pru Nifty Index Fund(G)4.86
Tata Index Fund-Nifty Plan(G)4.67
SBI Nifty Index Fund-Reg(G)4.42
Franklin India Index Fund-NSE Nifty(G)4.40
Aditya Birla SL Index Fund-Reg(G)4.39
LIC MF Index Fund-Nifty Plan(G)4.27
HDFC Index Fund-Sensex(G)5.79
Tata Index Fund-Sensex Plan(G)5.36
LIC MF Index Fund-Sensex Plan(G)4.86
Taurus Ethical Fund-Reg(G)7.40
Principal Nifty 100 Equal Weight Fund(G)2.00

Large & Mid Cap

Canara Rob Emerg Equities Fund-Reg(G)13.85
Principal Emerging Bluechip Fund(G)11.46
Quant Large & Mid Cap Fund(G)10.54
Invesco India Growth Opp Fund(G)8.47
Kotak Equity Opp Fund(G)7.77
DSP Equity Opportunities Fund-Reg(G)7.61
SBI Large & Midcap Fund-Reg7.22
Edelweiss Large & Mid Cap Fund-Reg(G)6.98
Tata Large & Mid Cap Fund(G)6.95
Sundaram Large and Mid Cap Fund(G)6.91
Aditya Birla SL Equity Advantage Fund6.46
L&T Large and Midcap Fund-Reg(G)6.42
ICICI Pru Large & Mid Cap Fund(G)4.67
BOI AXA Large & Mid Cap Equity Fund-Reg(G)4.50
IDFC Core Equity Fund-Reg(G)4.06
Franklin India Equity Advantage Fund(G)3.53
Nippon India Vision Fund(G)2.82
UTI Core Equity Fund-Reg(G)2.71
HDFC Growth Opp Fund-Reg(G)1.72

Large Cap Fund

Axis Bluechip Fund-Reg(G)10.29
Mirae Asset Large Cap Fund-Reg(G)9.56
BNP Paribas Large Cap Fund(G)8.43
SBI BlueChip Fund-Reg(G)7.18
Edelweiss Large Cap Fund(G)7.08
ICICI Pru Bluechip Fund(G)6.82
Invesco India Largecap Fund(G)6.35
LIC MF Large Cap Fund(G)6.33
Aditya Birla SL Frontline Equity Fund(G)6.16
Nippon India Large Cap Fund(G)6.02
JM Large Cap Fund(G)5.94
UTI Mastershare-Reg5.81
Kotak Bluechip Fund5.69
L&T India Large Cap Fund-Reg(G)5.61
PGIM India Large Cap Fund(G)5.53
HSBC Large Cap Equity Fund(G)5.42
IDFC Large Cap Fund-Reg(G)4.92
HDFC Top 100 Fund(G)4.65
Tata Large Cap Fund(G)4.51
DSP Top 100 Equity Fund-Reg(G)4.06
Franklin India Bluechip Fund(G)3.96
Taurus Largecap Equity Fund-Reg(G)2.38

Mid Cap Fund

Invesco India Midcap Fund(G)10.83
DSP Midcap Fund-Reg(G)10.72
Edelweiss Mid Cap Fund-Reg(G)10.10
Kotak Emerging Equity Fund(G)10.04
L&T Midcap Fund-Reg(G)10.02
Tata Mid Cap Growth Fund(G)9.89
Taurus Discovery (Midcap) Fund-Reg(G)9.75
BNP Paribas Mid Cap Fund(G)9.29
Franklin India Prima Fund(G)8.94
UTI Mid Cap Fund-Reg8.79
HDFC Mid-Cap Opportunities Fund(G)8.75
SBI Magnum Midcap Fund-Reg(G)7.31
Sundaram Mid Cap Fund(G)7.13
ICICI Pru Midcap Fund(G)6.45
Nippon India Growth Fund(G)6.33
Aditya Birla SL Midcap Fund(G)4.83

Multi Cap Fund

Invesco India Multicap Fund(G)9.44
Kotak Standard Multicap Fund(G)9.01
Quant Active Fund(G)8.67
SBI Magnum Multicap Fund-Reg(G)8.30
UTI Equity Fund-Reg8.07
Canara Rob Equity Diver Fund-Reg(G)8.07
Aditya Birla SL Equity Fund(G)8.06
JM Multicap Fund(G)7.90
DSP Equity Fund-Reg7.59
Principal Multi Cap Growth Fund(G)7.46
IDFC Multi Cap Fund-Reg(G)7.26
BNP Paribas Multi Cap Fund(G)7.21
ICICI Pru Multicap Fund(G)6.12
Franklin India Equity Fund(G)5.77
HSBC Multi Cap Equity Fund(G)5.73
L&T Equity Fund-Reg(G)5.01
HDFC Equity Fund(G)4.65
Baroda Multi Cap Fund(G)4.30
Nippon India Multi Cap Fund(G)4.19
LIC MF Multi Cap Fund(G)3.84
Taurus Starshare (Multi Cap) Fund-Reg(G)2.24

Small cap Fund

SBI Small Cap Fund-Reg(G)14.99
DSP Small Cap Fund-Reg(G)9.15
Franklin India Smaller Cos Fund(G)7.26
Kotak Small Cap Fund(G)6.68
HDFC Small Cap Fund-Reg(G)4.64
Sundaram Small Cap Fund(G)3.76
Aditya Birla SL Small Cap Fund(G)3.12
HSBC Small Cap Equity Fund(G)2.99
ICICI Pru Smallcap Fund(G)2.94

Focused Funds

SBI Technology Opp Fund-Reg9.72
ICICI Pru Technology Fund(G)9.30
Franklin India Technology Fund(G)8.63
Aditya Birla SL India GenNext Fund(G)11.47
Canara Rob Consumer Trends Fund-Reg(G)11.06
Aditya Birla SL Digital India Fund(G)9.35
Sundaram Rural and Consumption Fund(G)8.24
Tata Ethical Fund-Reg(G)7.30
SBI Magnum Equity ESG Fund-Reg6.30
Invesco India PSU Equity Fund(G)5.00
Franklin India Opportunities Fund(G)4.92
Nippon India Quant Fund(G)4.53
DSP Natural Res & New Energy Fund-Reg(G)4.20
SBI Magnum Comma Fund-Reg(G)3.37
Nippon India Banking Fund(G)3.15
DSP India T.I.G.E.R Fund-Reg(G)1.98
SBI Contra Fund-Reg1.93
Nippon India Power & Infra Fund(G)-1.16

Value Funds

L&T India Value Fund-Reg(G)8.12
Tata Equity P/E Fund(G)8.08
ICICI Pru Value Discovery Fund(G)7.99
JM Value Fund(G)6.35
Nippon India Value Fund(G)5.63
Aditya Birla SL Pure Value Fund(G)5.36
HDFC Capital Builder Value Fund(G)5.20
UTI Value Opp Fund-Reg(G)4.95
Quantum Long Term Equity Value Fund(G)-Direct Plan4.23
IDFC Sterling Value Fund-Reg(G)2.63
Templeton India Value Fund1.40

Contra & Div Yield

UTI Banking and Financial Services Fund-Reg2.04
Invesco India Contra Fund(G)9.60
Kotak India EQ Contra Fund(G)6.51
Principal Dividend Yield Fund(G)7.07
UTI Dividend Yield Fund-Reg(G)4.85
Templeton India Equity Income Fund(G)4.54
Aditya Birla SL Dividend Yield Fund(G)2.34

International Funds

Aditya Birla SL Intl. Equity Fund-A(G)7.97
Franklin Asian Equity Fund(G)6.84
Aditya Birla SL Intl. Equity Fund-B(G)3.07
Aditya Birla SL CEF-Global Agri-Reg(G)-0.48

Thematic Funds

UTI Transportation & Logistics Fund5.25
Invesco India Financial Services Fund(G)8.29
ICICI Pru Banking & Fin Serv Fund(G)7.72
Sundaram Fin Serv Opp Fund(G)5.40
ICICI Pru FMCG Fund(G)11.29
SBI Consumption Opp Fund-Reg8.69
UTI India Consumer Fund-Reg(G)6.50
Nippon India Consumption Fund(G)5.96
Quant Consumption Fund(G)5.50
Invesco India Infrastructure Fund(G)5.85
Taurus Infrastructure Fund-Reg(G)4.31
L&T Infrastructure Fund-Reg(G)3.48
BOI AXA Mfg & Infra Fund-Reg(G)3.23
Kotak Infra & Eco Reform Fund(G)2.80
Canara Rob Infrastructure Fund-Reg(G)2.60
SBI Infrastructure Fund-Reg(G)1.98
Tata Infrastructure Fund-Reg(G)1.62
UTI Infrastructure Fund-Reg0.81
LIC MF Infra Fund(G)0.47
Aditya Birla SL Infrastructure Fund(G)0.35
ICICI Pru Infrastructure Fund(G)-0.01
HSBC Infra Equity Fund(G)-0.06
HDFC Infrastructure Fund(G)-0.07
Sundaram Infra Advantage Fund(G)-0.25
Quant Infrastructure Fund(G)-0.78
Aditya Birla SL MNC Fund-Reg(G)11.84
SBI Magnum Global Fund-Reg10.80
UTI MNC Fund-Reg10.53
Nippon India Pharma Fund(G)12.28
SBI Healthcare Opp Fund-Reg10.39
UTI Healthcare Fund-Reg8.70
ICICI Pru Exports & Services Fund(G)8.71
SBI Technology Opp Fund-Reg9.72
ICICI Pru Technology Fund(G)9.30
Franklin India Technology Fund(G)8.63
Aditya Birla SL India GenNext Fund(G)11.47
Canara Rob Consumer Trends Fund-Reg(G)11.06
Aditya Birla SL Digital India Fund(G)9.35
Sundaram Rural and Consumption Fund(G)8.24
Tata Ethical Fund-Reg(G)7.30
SBI Magnum Equity ESG Fund-Reg6.30
Invesco India PSU Equity Fund(G)5.00
Franklin India Opportunities Fund(G)4.92
Nippon India Quant Fund(G)4.53
DSP Natural Res & New Energy Fund-Reg(G)4.20
SBI Magnum Comma Fund-Reg(G)3.37
Nippon India Banking Fund(G)3.15
DSP India T.I.G.E.R Fund-Reg(G)1.98
SBI Contra Fund-Reg1.93
Nippon India Power & Infra Fund(G)-1.16
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2 Comments

  1. Just out of curiosity any views / data on how would a permanent portfolio have fared in in the last 10 years?

  2. Dear Sir, At Age 40 I want to know what should be combination of Fund Types (Large Cap/Large&MidCap/Multipcap) one should have for long term say 10 plus years investments. I have 5% of my current total networth in ELSS MF as of now. want to increase MF holding to 15% -by lumpsum method in next few months (Note- I have 5% in direct equity and 5% in gold and balance 85% in Fixed income). I am ok to come out of ELSS and go for any good equity MF. Please suggest.

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