SIP of ₹10,000 turns to ₹14 lakh in 5 years in 5-star rated fund by Morningstar

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A long-term SIP is advised when investing in mutual funds since it allows one to comprehend the market more thoroughly and build wealth without being impacted by short-term turbulence. Therefore, according to financial gurus, the longer you invest, the better the risk-adjusted returns you may generate. As a consequence, your mutual funds will compound more consistently, which will help you accomplish your long-term objectives. For your long-term objective, you might want to think about investing in equity mutual funds. As an example of an equity mutual fund, here is one with a 5-star rating that turned a monthly SIP of 10,000 into more than 14 lakh over the course of five years.

Quant Small Cap Fund Direct Plan-Growth Returns

Quant Small Cap Fund Direct Plan-Growth has been rated 5-star by Morningstar, has been rated 4-star by Value Research and has also been ranked no.1 by CRISIL. Since its introduction, Quant Small Cap Fund Direct Plan-Growth has generated returns of an average of 15.52% per year, including 11.84% over the past year. 

In the last 5 years, the fund has generated a SIP return of 34.84% higher than the category average of 23.51% which means that if a monthly SIP of 10,000 invested in this fund 5 years ago would now have grown to 14.02 Lakh approx. In the last 3 years the fund has generated a SIP return of 54.24% much higher than the category average of 34.80%, hence if an investor had started a SIP of 10,000 3 years ago in this fund, then it would now have turned to 7.50 lakh approx. 

In the last 2 years, the fund has given a return of 36.64%, indicating that a monthly SIP of 10,000 started 2 years ago in this fund would now have turned to 3.55 lakh approx.

Details of Quant Small Cap Fund Direct Plan-Growth

The fund was launched on January 1, 2013, and as of June 30, 2022, it has assets under management (AUM) of 1,911 Crores. NAV for the fund as of August 26, 2022 is 137.01. The fund has a 0.62% expense ratio and is allocated among the consumer goods, services, healthcare, financial, and construction sectors. ITC Ltd., IRB Infrastructure Developers Ltd., ICICI Bank Ltd., Hindustan Copper Ltd., and Linde India Ltd. are the top 5 holdings of the fund. 

99.25% of the fund’s holdings are domestic equities, with 23% of those holdings in large-cap companies, 8.18% in mid-cap companies, and 68.07% in small-cap stocks. The fund has a Jension’s Alpha ratio of 17.08 compared to the category average of 6.94, indicating the fund managers were able to deliver superior-risk adjusted returns above the returns signalled by the capital asset pricing model. The fund has a Sharpe Ratio of 1.5 compared to the category average of 1.08, showing the fund’s better performance in terms of generating risk-adjusted returns relative to its peers.

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