As an Investor, we have various options to invest our hard-earned money. The aim for any investment is to create reasonable wealth with peace of Mind. 
Equity Mutual Funds have also been available to investors as an investment option, but investors have mixed feelings with respect to returns. The perception for equity MF is generally Negative. We have tried to work on the actual data of Equity MF schemes, which were present 20 years back and have gone through 3- 4 cycles of Bull and Bear markets and understand if they have been able to do justice to the investor.
LUMP SUM RETURNS
Returns Generated on an investment of Rs.10 Lacs over a period of 20 years
| Scheme Name | Return CAGR(%) | Value (In Rs.) | |
| 1 | Aditya Birla Sun Life Equity Advantage Fund- Gr | 17.02 | 2,31,84,721 |
| 2 | Aditya Birla Sun Life Flexi Cap Fund- Gr | 19.86 | 3,74,52,901 |
| 3 | Aditya Birla Tax Relief 96 Fund- Div | 17.74 | 2,62,10,821 |
| 4 | Canara Robeco Equity Tax Saver Fund- Div | 17.20 | 2,39,08,495 |
| 5 | DSP Equity Opportunities Fund- Gr | 20.39 | 4,09,08,004 |
| 6 | DSP Flexi Cap Fund- Reg. Plan-Div | 20.29 | 4,02,33,749 |
| 7 | Franklin India Bluechip Fund- Gr | 18.41 | 2,93,60,782 |
| 8 | Franklin India Flexi Cap Fund- Gr | 20.29 | 4,02,33,749 |
| 9 | Franklin India Prima Fund- Gr | 23.56 | 6,87,95,177 |
| 10 | Franklin India Tax shield – Gr | 18.88 | 3,17,81,613 |
| 11 | HDFC Capital Builder Value Fund- Gr | 19.30 | 3,41,04,279 |
| 12 | HDFC Flexi Cap Fund- Gr | 21.40 | 4,83,47,488 |
| 13 | HDFC Growth Opportunities Fund- Gr | 13.49 | 1,25,64,694 |
| 14 | HDFC Tax saver- Div | 20.21 | 3,97,01,960 |
| 15 | HDFC Top 100 Fund-Div | 20.34 | 4,05,69,546 |
| 16 | ICICI Prudential Large & Mid cap Fund- Gr | 17.00 | 2,31,05,599 |
| 17 | ICICI Prudential Long Term Equity Fund- Regular- Gr | 21.16 | 4,64,71,350 |
| 18 | Nippon India Growth Fund- Gr | 24.50 | 8,00,54,736 |
| 19 | Nippon India Vision Fund- Gr | 21.35 | 4,79,50,773 |
| 20 | Principal Multi cap Growth Fund- Gr | 16.17 | 2,00,39,173 |
| 21 | Principal Tax Savings Fund | 16.32 | 2,05,63,066 |
| 22 | SBI Contra Fund- Regular Div | 21.11 | 4,60,89,297 |
| 23 | SBI Large & Midcap Fund- Div | 18.74 | 3,10,41,371 |
| 24 | SBI Long Term Equity Fund- Div | 19.56 | 3,56,21,986 |
| 25 | SBI Magnum Equity ESG Fund- Div | 16.82 | 2,24,04,953 |
| 26 | Sundaram Diversified Equity Tax Saver Fund- Div | 18.05 | 2,76,26,116 |
| 27 | Tata India Tax Savings Fund Regular Plan- Div | 18.64 | 3,05,22,687 |
| 28 | Tata Large Cap Fund- Gr | 18.01 | 2,74,39,501 |
| 29 | Taurus Flexi Cap Fund- Gr | 16.43 | 2,09,55,496 |
| 30 | Templeton India Value Fund- Gr | 18.07 | 2,77,19,875 |
| Average of all Funds | 19.43 |
3,48,32,131 |
|
LUMPSUM INVESTED Rs.10LACS |
CURRENT VALUE Rs. 3.48 crore |
The Funds have delivered an average return of 19.43% in the 20-year period, multiplying investor wealth by around 34 times. 97% of the funds have delivered more than 15% returns.
SYSTEMATIC INVESTMENT PLAN RETURNS (SIP)
Returns generated on a monthly investment of Rs.25,000 over a period of 20 Years
| Scheme Name | Return CAGR(%) | Value(in Rs.) |
| Aditya Birla Sun Life Equity Advantage Fund- Gr | 15.80 | 3,66,26,354 |
| Aditya Birla Sun Life Flexi Cap Fund- Gr | 18.52 | 5,14,08,451 |
| Aditya Birla Tax Relief 96 Fund- Div | 16.19 | 3,84,41,508 |
| Canara Robeco Equity Tax Saver Fund- Div | 17.49 | 4,51,96,067 |
| DSP Equity Opportunities Fund- Gr | 18.53 | 5,14,72,895 |
| DSP Flexi Cap Fund- Reg. Plan-Div | 19.11 | 5,53,55,810 |
| Franklin India Bluechip Fund- Gr | 16.48 | 3,98,51,637 |
| Franklin India Flexi Cap Fund- Gr | 18.25 | 4,96,99,358 |
| Franklin India Prima Fund- Gr | 20.40 | 6,51,00,220 |
| Franklin India Tax shield – Gr | 17.29 | 4,40,81,092 |
| HDFC Capital Builder Value Fund- Gr | 17.77 | 4,68,03,571 |
| HDFC Flexi Cap Fund- Gr | 18.52 | 5,14,08,451 |
| HDFC Growth Opportunities Fund- Gr | 12.69 | 2,50,01,457 |
| HDFC Tax saver- Div | 16.71 | 4,10,08,090 |
| HDFC Top 100 Fund-Div | 17.77 | 4,68,03,571 |
| ICICI Prudential Large & Mid cap Fund- Gr | 15.56 | 3,55,53,889 |
| ICICI Prudential Long Term Equity Fund- Regular- Gr | 18.80 | 5,32,44,544 |
| Nippon India Growth Fund- Gr | 21.26 | 7,25,49,205 |
| Nippon India Vision Fund- Gr | 16.87 | 4,18,33,025 |
| Principal Multi cap Growth Fund- Gr | 14.78 | 3,22,89,001 |
| Principal Tax Savings Fund | 15.80 | 3,66,26,354 |
| SBI Contra Fund- Regular Div | 17.98 | 4,80,48,527 |
| SBI Large & Midcap Fund- Div | 18.66 | 5,23,18,249 |
| SBI Long Term Equity Fund- Div | 18.54 | 5,15,37,423 |
| SBI Magnum Equity ESG Fund- Div | 16.32 | 3,90,67,122 |
| Sundaram Diversified Equity Tax Saver Fund- Div | 15.85 | 3,68,53,997 |
| Tata India Tax Savings Fund Regular Plan- Div | 16.84 | 4,16,77,052 |
| Tata Large Cap Fund- Gr | 16.46 | 3,97,52,686 |
| Taurus Flexi Cap Fund- Gr | 14.54 | 3,13,48,781 |
| Templeton India Value Fund- Gr | 15.98 | 3,74,52,784 |
| Average of All Funds | 17.39 | 4,46,13,672 |
|
SIP Rs.25000/- per month Invested Rs. 60 LACS |
CURRENT VALUE Rs. 4.46 Crore |
A monthly investment of Rs.25000 in these schemes through the SIP route from 1st March 2001 to 31st March 2021 has been assumed. Where the best performing fund has created wealth of a staggering Rs.7.25 Crores, the SIP in the worst performing fund has also made a healthy Rs.2.50 crores for the investor.
The Funds have delivered an average return of 17.39% in the 20-year period, multiplying investor wealth by around 9 times. 90% of the funds have delivered more than 15% returns.
To summarize, I would like to reiterate to all investors that equity is the best performing asset against all the other asset classes in long term. It gives flexibility, risk diversification and is also tax efficient, all at the same time.
About the author: Gurleen Kaur Tikku is a Certified Financial Planner and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. She can be Contacted at [email protected]