As of October 31, 2024, investors who followed a systematic investment plan (SIP) with a monthly contribution of Rs 12,000 have witnessed impressive growth in their mutual fund investments. Some schemes have delivered an exceptional Extended Internal Rate of Return (XIRR) of over 70%, highlighting the potential of SIPs as a powerful tool for wealth creation. Invest in the best SIP mutual funds for 2024 and enjoy superior returns.Â
Top-Performing Mutual Funds: Motilal Oswal Leads the Way
In the analysis of SIP mutual fund performance from November 2023 to October 2024 by PS Wealth, the wealth management arm of Prabhudas Liladhar, Motilal Oswal funds emerged as the market’s standout performers.
- Motilal Oswal Midcap Fund-Reg(G) has proven to be the highest performer in this period, with an astounding XIRR of 81%. The Rs 12,000 monthly SIP invested over the last year grew to Rs 15,983.
- Bandhan Small Cap Fund-Reg(G) closely followed with an XIRR of 76.9%, bringing the SIP value to Rs 15,798.
- Another stellar performer, Motilal Oswal Flexi Cap Fund-Reg(G), achieved a remarkable XIRR of 70.7%, with a present SIP value of Rs 15,516.90.
Motilal Oswal’s ELSS Tax Saver Fund-Reg(G), a tax-saving scheme, delivered an impressive XIRR of 70.0%, making its SIP value Rs 15,486.5. The Motilal Oswal Large & Midcap Fund-Reg(G) also delivered a strong performance, with an XIRR of 68.9%, resulting in a present SIP value of Rs 15,434.
Mid and Small-Cap Funds Make Their Mark
Mid-cap and small-cap funds also showed strong, highlighting their potential for high returns, especially in periods of market growth.
- Invesco India Midcap Fund(G) posted an XIRR of 66.2%, growing the Rs 12,000 monthly SIP to Rs 15,310.2.
- Small-cap funds like Motilal Oswal Small Cap Fund-Reg(G) (XIRR: 64.8%) and Invesco India Focused Fund-Reg(G) (XIRR: 63.7%) also delivered substantial returns, making them some of the top performers of the year.
These funds reflect the growing interest and potential in mid and small-cap stocks, which have shown resilience and strong returns during this period.
Underperforming Funds: A Mixed Bag
While some funds have provided exceptional returns, others have struggled to keep up with the market average. For instance, Samco Flexi Cap Fund-Reg(G) significantly underperformed, with an XIRR of just 13.2%, bringing the SIP value to Rs 12,710.3, barely above the initial investment.
Other funds that lagged included:
- Samco ELSS Tax Saver Fund-Reg(G) delivered an XIRR of just 19.8%.
- Union-Focused Fund-Reg(G), with a modest XIRR of 28.5%.
These underperformers highlight the importance of selecting suitable funds based on risk tolerance, goals, and investment horizon. It also emphasizes the need to review mutual fund performance regularly and make adjustments when needed.
Mid-Cap Funds Showing Modest Performance
Several mid-cap funds, such as the Taurus Mid Cap Fund-Reg(G) and ITI Large Cap Fund-Reg(G), also posted XIRRs in the 29%-30% range, which is underwhelming compared to the top-performing funds. While these funds did show some positive growth, their returns didn’t match the stellar performance of their peers, such as those from the Motilal Oswal and Invesco funds.
On the other hand, Sundaram Large Cap Fund-Reg(G) showed a respectable XIRR of 31.6%, proving that even some bottom performers can still deliver solid results in a fluctuating market.
Conclusion: SIPs Offer a Powerful Investment Strategy
The performance of mutual funds in 2024 has once again proven the potential of Systematic Investment Plans (SIPs) to build wealth steadily over time. While some funds have performed exceptionally well, others have faced challenges. Investors should aim to diversify their portfolios to balance risk and returns, taking advantage of funds that have consistently outperformed their benchmarks.
Top performers like Motilal Oswal Midcap Fund and Bandhan Small Cap Fund demonstrate the power of selecting high-performing schemes. However, underperformers also remind investors to carefully consider where they place their money. When used strategically, SIPs can help investors maximize returns and achieve long-term financial goals.
Whether you’re a seasoned investor or just getting started, understanding the performance of various funds, including their XIRR, can help you make informed, profitable investment decisions.
