So, it was an unfortunate surprise to read reports which said that as soon as markets collapsed in early 2008 investors started cancelling their SIP plans. Around 3.62 million SIP accounts in September 2008 tumbled to 3.26 million SIP accounts in March 2009. It is true that no one was spared when market collapsed not even SIP investors. But, now the situation has changed to some extent at least better for only those who did not cancelled their SIP plans. Now, the markets are in recovery mode.
"Stock markets behave in cycles, it never works unidirectional. "
Diversified equity funds have started showing the rosy picture on 5 year basis ever since markets have started recovering as of 30th April, 2009. In fact, 85 per cent of the diversified equity funds have given positive returns over the past five years with Magnum Contra leading the pack with 16.23 per cent returns. Sahara Growth and DSP BR Top 100 Equity followed with a 15.7 per cent and 15.65 per cent returns respectively.
However, all these diversified equity funds, including the ones mentioned above, are still faring miserably over the three-year period’s SIP returns – they are all in red.
Furthermore, when we talk about equity investments they are meant for long term any horizon above 5 years atleast.
The basic purpose of SIP plans is making the most via disciplined manner irrespective how market moves, rupee cost averaging & power of compounding.
It is also important to note SIPs do not guarantee profits under all circumstances but they are though effective vehicles in long term wealth creation.
However, all these diversified equity funds, including the ones mentioned above, are still faring miserably over the three-year period’s SIP returns – they are all in red.
Furthermore, when we talk about equity investments they are meant for long term any horizon above 5 years atleast.
The basic purpose of SIP plans is making the most via disciplined manner irrespective how market moves, rupee cost averaging & power of compounding.
It is also important to note SIPs do not guarantee profits under all circumstances but they are though effective vehicles in long term wealth creation.
"Do not invest in haste & in the flow of emotions. Think Different! Think Smarter! But, do not forget to Act"
Written By- Varun Vaid
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Check For Yourself Reader
| SIP Returns | |||||
| Scheme Name | 5 year Return (%) | 3 year Return (%) | |||
| Magnum Contra | 16.23 | -22.12 | |||
| Sahara Growth | 15.70 | -18.59 | |||
| DSPBR Top 100 Equity Reg | 15.65 | -19.99 | |||
| HDFC Top 200 | 14.95 | -19.87 | |||
| ICICI Prudential Dynamic | 14.24 | -22.79 | |||
| DSPBR Equity | 14.06 | -22.46 | |||
| Reliance Growth | 13.74 | -23.09 | |||
| Birla Sun Life Frontline Equity | 13.72 | -20.91 | |||
| Baroda Pioneer Growth | 13.30 | -19.58 | |||
| Magnum Multiplier Plus | 13.22 | -24.17 | |||
| DWS Alpha Equity Regular | 12.22 | -22.03 | |||
| Franklin India Prima Plus | 11.92 | -22.60 | |||
| Sundaram BNP Paribas Select Focus Reg | 11.87 | -23.55 | |||
| HSBC Equity | 11.81 | -21.57 | |||
| UTI Infrastructure | 11.77 | -25.34 | |||
| Kotak 30 | 11.53 | -23.40 | |||
| Franklin India Bluechip | 11.48 | -21.55 | |||
| DWS Investment Opportunity Regular | 11.44 | -22.61 | |||
| ICICI Prudential Growth | 11.41 | -22.31 | |||
| HDFC Index Sensex Plus | 11.26 | -21.85 | |||
| HDFC Equity | 11.11 | -23.14 | |||
| Magnum Equity | 11.00 | -23.34 | |||
| HDFC Growth | 10.91 | -23.31 | |||
| Templeton India Growth | 10.15 | -21.61 | |||
| Birla Sun Life Asset Allocation Aggressive | 9.67 | -20.35 | |||
| Reliance Vision | 9.58 | -24.40 | |||
| Tata Pure Equity | 9.50 | -24.03 | |||
| UTI Index Select Equity | 9.43 | -22.78 | |||
| Birla Sun Life Equity | 9.16 | -25.55 | |||
| Canara Robeco Equity Diversified | 9.06 | -21.64 | |||
| DSPBR Opportunities | 8.72 | -24.87 | |||
| FT India Life Stage FoF 20s | 8.53 | -21.43 | |||
| DBS Chola Opportunities | 8.52 | -23.32 | |||
| ICICI Prudential Advisor-Very Aggressive | 8.38 | -23.99 | |||
| ICICI Prudential Power | 8.01 | -25.39 | |||
| Sundaram BNP Paribas Select Midcap Reg | 7.82 | -28.57 | |||
| UTI Mastershare | 7.62 | -22.46 | |||
| ING Nifty Plus | 7.56 | -23.57 | |||
| ING Core Equity | 7.32 | -25.44 | |||
| UTI Equity | 6.94 | -23.05 | |||
| HSBC India Opportunities | 6.79 | -26.34 | |||
| Franklin India Opportunities | 6.48 | -27.13 | |||
| Birla Sun Life Buy India | 6.11 | -25.12 | |||
| Birla Sun Life Mid Cap | 5.91 | -27.08 | |||
| UTI Master Plus '91 | 5.68 | -26.02 | |||
| Birla Sun Life Dividend Yield Plus | 5.28 | -22.27 | |||
| HDFC Capital Builder | 5.16 | -25.67 | |||
| Sundaram BNP Paribas Growth Reg | 4.78 | -27.59 | |||
| Taurus Starshare | 4.44 | -30.55 | |||
| Birla Sun Life Basic Industries | 4.44 | -26.82 | |||
| UTI MNC | 4.41 | -23.40 | |||
| UTI Master Growth | 4.29 | -25.71 | |||
| Morgan Stanley Growth | 3.31 | -27.43 | |||
| Birla Sun Life MNC | 3.14 | -25.24 | |||
| Birla Sun Life Advantage | 2.98 | -27.48 | |||
| DBS Chola Growth | 2.90 | -27.01 | |||
| Principal Resurgent India Equity | 2.77 | -28.00 | |||
| Taurus Bonanza | 2.56 | -29.94 | |||
| Tata Equity Opportunities | 2.52 | -30.14 | |||
| Tata Select Equity | 1.77 | -30.94 | |||
| Kotak MNC | 1.69 | -25.89 | |||
| Magnum Global | 1.61 | -33.52 | |||
| LICMF Equity | 1.28 | -25.82 | |||
| LICMF Sensex Advantage | 0.88 | -27.08 | |||
| LICMF Growth | 0.10 | -26.72 | |||
| Tata Growth | -1.11 | -30.31 | |||
| UTI Services Industries | -1.41 | -30.21 | |||
| JM Equity | -1.79 | -31.85 | |||
| UTI Master Value | -1.87 | -28.30 | |||
| Principal Growth | -2.32 | -30.92 | |||
| Escorts Growth | -2.32 | -33.92 | |||
| Franklin India Prima | -3.90 | -31.94 | |||
| UTI Mid Cap | -5.54 | -32.01 | |||
| Kotak Global India | -5.79 | -34.44 | |||
| Birla Sun Life India Opportunities | -8.12 | -34.11 | |||
| Taurus Discovery | -13.27 | -39.86 | |||
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| Return as on 30th April 2009 | |||||
Written By- Varun Vaid