Oldest Mutual Fund Schemes (India) – Performance and Earnings

Oldest Mutual Fund Schemes – How have they performed so far?

Roboadviso     Mutual Funds     Posted On, Tue 4th September, 2018     No comments
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In 1993, the government of India opened up the mutual fund (MF) sector to competition from private players. Before opening up of the market, mutual funds industry in India was run by insurance companies, public sector banks, and UTI. On 1st December 1993, the formerly known as ‘Kothari Pioneer Mutual Fund’ and currently called Franklin Templeton Mutual Fund established the Bluechip Fund and Prima Fund.

There were a total of 9 MF schemes that were available in India by the end of 1993. There was launch of 6 MF schemes in 1993, while 2 schemes were issued before it. Other equity mutual fund schemes which were available in the market during that period included SBI Magnum TaxGain’93, Canara Robeco Equity Tax Saver Fund, SBI Large and Midcap Fund, SBI Magnum Equity ESG Fund, Tata Large and Mid Cap Fund, UTI Mastershare Fund, and UTI Equity Fund. As of 30th June 2018, these 9 MF schemes manage combined assets that are valued at more than INR 40,200 crores.

Both the mutual fund equity schemes of Kothari Pioneer, currently known as Franklin India Bluechip Fund and Franklin India Prima Fund, have racked up impressive returns and outperformed the other MF schemes. The biggest of the 9 MF schemes, i.e., the Franklin India Bluechip Fund, has provided CAGR returns of nearly 21 percent from the time of its launch. This large cap scheme manages assets that are valued at more than INR 8,090 crores. People who had made an investment of INR 20,000 in the MF since Dec 1993, when it was launched, would have built up savings of more than INR 6.50 crores by now.

SBI Magnum TaxGain’93, which is the 4th largest MF scheme in terms of assets under management (AUM) in its group of tax saving funds, offered returns of more than 16.70 percent since its launch. This is the 3rd highest yields in the category. The MF scheme was first issued in March 1993 and currently it maintains an AUM of nearly INR 6,270 crores.

Franklin India Prima Fund, which controls assets worth more than INR 6,590 crores, has provided earnings of over 20.29 percent since it was first issued in Dec 1993. Thus, people who had made an investment of INR 20,000 in the MF each month since Dec 1993, when it was launched, would have built up savings of more than INR 7.70 crores by now.

Canara Robeco Equity Tax Saver Fund is another tax saving MF scheme that is featured in the list of high earners. Since the time of its launch in Jan 1993, the fund has provided nearly 14.80 percent CAGR returns. People who had invested INR 20,000 every month in the scheme from the very beginning would have built up savings of around INR 5.50 crores by now.

 

It may be noted that unlike what happens now, the NAVs during the 90s were manually recorded. Hence, the start month of SIP in the above examples has been taken as Jan 1994. It may also be noted that the chances of NAV records missing or being available for those early times are quite high.

With regards to the discussion on MF schemes that are 25 years old, it may be noted that the CAGR return of SBI Large & Midcap Fund has been over 14.49 percent since it was first issued in Feb 1993. The CAGR return of SBI Magnum Equity ESG Fund has been nearly 14.00 percent over the past 25 years.

The rest of the 3 mutual fund schemes, namely, UTI Equity Fund, Tata Large & Midcap Fund, and UTI Matershare have respectively provided CAGR returns of around 13.40 percent, about 12.25 percent, and around 8.50 percent, over the last 25 years.

Provided below are details of the performance of the oldest MF schemes over the last 5, 10, 15, 20, and 25 years

  • SBI Magnum Equity ESG Fund-Reg (D) was launched on 1st January 1991. Its CAGR returns have been about 15.49 percent, 13.31 percent, 21.30 percent, 17.60 percent, and 13.84 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • UTI Mastershare-Reg (D) was launched on 15th October 1986. Its CAGR returns have been about 15.41 percent, 12.45 percent, 17.95 percent, 13.51 percent, and 8.40 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • UTI Equity Fund-Reg (D) was launched on 18th May 1992. Its CAGR returns have been about 17.80 percent, 15.61 percent, 20.94 percent, 15.53 percent, and 13.30 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • SBI Large & Midcap Fund- Reg (D) was launched on 28th February 1993. Its CAGR returns have been about 19.34 percent, 14.52 percent, 24.75 percent, 18.20 percent, and 14.50 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • Tata Large & Midcap Fund (G) was launched on 25th February 1993. Its CAGR returns have been about 16.30 percent, 11.75 percent, 21.76 percent, 19.15 percent, and 12.27 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • SBI Magnum TaxGain’93 – Reg (D) was launched on 31st March 1993. Its CAGR returns have been about 15.73 percent, 12.23 percent, 25.50 percent, 20.86 percent, and 16.66 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • Canara Rob Equity Tax Saver Fund – Reg (D) was launched on 31st March 1993. Its CAGR returns have been about 16.14 percent, 16.22 percent, 20.75 percent, 15.97 percent, and 14.32 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • Franklin India Prima Fund (G) was launched on 1st December 1993. Its CAGR returns have been about 24.22 percent, 18.88 percent, 23.75 percent, 25.44 percent, and 20.32 percent, over the last 5, 10, 15, 20, and 25 years, respectively.
  • Franklin India Bluechip Fund (G) was launched on 1st December 1993. Its CAGR returns have been about 14.31 percent, 13.56 percent, 20.75 percent, 22.01 percent, and 20.99 percent, over the last 5, 10, 15, 20, and 25 years, respectively.

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