Mutual funds are excellent means to participate in equity markets and we have seen some of the mutual fund schemes like HDFC Top 200 which have given exceptional returns over 3-5 year periods. Similarly, let us look some of the Top Systematic Investment Plans in Equity Funds which have given consistent returns over the past few years.

Why invest through SIP?

Systematic Investment Plan (SIP) a good plan offered by mutual funds to help you save systematically and regularly.  SIP makes you to take part in the equity markets without trying to second-guess its movements and  one need not worry too much about ups and downs of the markets.

So how the investments through SIP have performed?

Check out the table below, which shows the 1,3 and 5 year SIP returns of HDFC Equity, Reliance Growth, HDFC Top 200 and Reliance Regular Savings . The 3 year returns are 22-28% per annum and 5 year returns are 20-21% p.a as on date.


As you see above, the returns are exceptionally good, if invested with a 3 to 5 year time frame. SIP makes you disciplined in your savings and to get the most out of it,  invest with a long term view. Also the advantages of investing in mutual funds are many like,  no-entry-load, SIP amount as low as Rs.500 ( even Rs.100 in some of the funds) and auto-debit from bank accounts.

Hence apart from your one-time or single investments in mutual funds, SIP investments should be integral part your investment planning. When it comes to investing, long term results are rewarding and disciplined investing rewards you more !

Reliance Regular Savings Fund is one of the many schemes from Reliance Mutual Fund, which have performed well since the last few years. The scheme is benchmarked against BSE 100, whose 5 year return is 18% whereas the fund's % year return is about 25%, which clearly exhibits its outpeformance.

Snapshot of the fund:

Reliance Regular Savings Fund is an open-ended fund whose primary objective is to seek capital appreciation and consistent returns by actively investing in equity and equity related securities. The entry load is nil and exit load is 1% if redeemed withing one year. The minimum investment is Rs.500 and SIP is available. The fund size is about 3000 cr, which is pretty much okay like any other  major schemes.

Performance:

This scheme was launched in 2005, and currently the NAV of the Growth scheme of this fund stands at Rs.30.The 5 year return is 24% p.a which is spectacular by any means. The 1 year and 3 year returns stand at 31% and 21% respectively, which speaks of it consistent performance over longer period.

Why invest in mutual funds?

As we have seen with HDFC Top 200 Fund, returns from mutual funds are consistent. For an average investor, it is a difficult task to decide which stock to buy, how much to buy and when to sell.Investing in mutual funds offer diversification to reduce risk substantially.

Though one can invest in stocks directly, after considerable research, it is not a bad idea to invest some amount in mutual funds.

Once couldn't find better time to write about this top performing fund than now, as its Net Asset Value (NAV) hits all-time high . Yes ! HDFC Top 200 Fund which has outperformed most of the funds in its category, reaches NAV of Rs.200. Though the fund has dividend option and you would have got regular dividends, we are analyzing the performance of the Growth option.

The interesting point to note here is that, the NAV of this fund was Rs.170 when the Sensex hit all-time high of 21,000 in 2008 and now the NAV is Rs.200. Which means even if you had invested in this fund at the peak of 21,000, you are still making good 18% returns above that, while the Sensex is still at 18,000.

Snapshot of the fund:
HDFC Top 200 is an open-ended fund which predominantly invests in BSE 200 stocks, with a higher exposure to Midcap stocks. The entry load is 0% and exit load of 1% if redeemed withing 1 year, after which no exit load. Though the fund size is quite large of about 8000cr, one needn't worry too much its management.

Performance:
The fund has given stupendous returns of 24% per annum since inception and its past 3 year and 5 year returns stand at 16% p.a. and 27% p.a. respectively. The 10-year SIP return is at 32% p.a and one couldn't ask for better performance.

Disciplined Systematic Investment in this fund has certainly generated spectacular returns, which are one of the best for a passive investor. Hence even if you haven't invested in this fund yet, you can invest through a SIP method for long term. It is one of the best funds to be in, for long term.

Watch out for review of this fund and  more such funds in this category.