A mutual fund SIP (systematic investment plan) can be an excellent way of wealth creation in the long term for investors. The SIP mode of investment mitigates risks associated with market volatility through cost averaging and helps investors build a big corpus over time.
In the last six months, Indian equities have seen sharp corrections, making many investors cautious about continuing their SIP investments. The SIP stoppage ratio rose to 122% in February this year, reflecting weak investor sentiment in the mutual fund space. This also reflected in SIP inflows, which hit a three-month low of Rs 25,999 crore for the month.
The key to success in an investment journey is patience, and as an investor, you must remember that SIPs help you leverage market downturns, providing an opportunity to buy more units at a lower price. Looking at long-term trends, the equity market has always experienced such periodic downturns, temporarily impacting the mutual fund industry, but it recovers over time, allowing investors to benefit from cost averaging on investments made during market slumps. This is evident from the fact that, over the long term (10 years and above), many funds have delivered annualised returns ranging from 15% to 20% on SIP investments.
In this write-up, we will discuss the Parag Parikh Flexi Cap Fund, a scheme launched in May 2013 by PPFAS. The flexi-cap fund has delivered excellent returns over the last 3, 5, and 10 years. This scheme is the largest in terms of assets, with an AUM of Rs 88,005 crore.
Parag Parikh Flexi Cap Fund has generated an annualised return of 18.62% in 3 years, 33.93% in 5 years and 18.07% in 10 years. The fund has delivered a 20.04% annualised return since its launch in 2013.
The fund’s SIP return stood at an annualised rate of 20.6% in the last 10 years. With this yield, an investment of Rs 10,000 per month in this scheme would have turned into a corpus of Rs 35.53 lakh in 10 years.
Parag Parikh Flexi Cap Fund has delivered a 20.08% annualised return since 2013 on SIP investments, turning Rs 10,000 monthly investment into a corpus of Rs 42.80 lakh in 2025.
Past performance doesn’t guarantee similar returns in future
Investors, however, must remember that past performance is not a guarantee of future return.
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