Equity Mutual Funds

Despite ups and downs, long term investors have made returns that beat inflation.
Scripbox has also done better than the market every year, and over every investing period.

Investment Period
Ending 31 Dec 2016
Annualised Return as of 31 Dec 2016
Monthly Investments/SIP
On the 10th of every month
Scripbox
Equity Portfolio
Market
(Nifty)
Jan 2017 -
Will be published on 31 Dec 2017
Jan 2016 - Dec 2016
4.3%
2.9%
Jan 2015 - Dec 2016
3.2%
0.4%
Jan 2014 - Dec 2016
7.0%
3.0%
Jan 2013 - Dec 2016
10.7%
6.1%
Jan 2012 - Dec 2016
11.9%
7.7%
Jan 2011 - Dec 2016
11.8%
7.8%
Jan 2010 - Dec 2016
11.2%
7.4%
Jan 2009 - Dec 2016
12.4%
8.4%
Jan 2008 - Dec 2016
12.3%
8.3%
Jan 2007 - Dec 2016
11.8%
8.0%
Jan 2006 - Dec 2016
11.9%
8.2%
Investment Period
Ending 31 Dec 2016
Annualised Return as of 31 Dec 2016
One-Time Investment
On 1st Jan of period start
Scripbox
Equity Portfolio
Market
(Nifty)
Jan 2017 -
Will be published on 31 Dec 2017
Jan 2016 - Dec 2016
5.0%
3.0%
Jan 2015 - Dec 2016
2.9%
-0.6%
Jan 2014 - Dec 2016
14.4%
9.2%
Jan 2013 - Dec 2016
12.3%
8.5%
Jan 2012 - Dec 2016
15.4%
12.1%
Jan 2011 - Dec 2016
8.5%
4.9%
Jan 2010 - Dec 2016
10.4%
6.7%
Jan 2009 - Dec 2016
17.4%
13.6%
Jan 2008 - Dec 2016
6.1%
3.2%
Jan 2007 - Dec 2016
10.9%
7.5%
Jan 2006 - Dec 2016
13.3%
10.1%

Portfolio: The Scripbox equity portfolio consists of our 4 recommended equity funds, each comprising 25% of the portfolio, with re-balancing to the latest basket of funds each year, on 1 January.

Benchmark: Benchmarking helps you understand how your selected option is doing relative to what you can expect. When we (any investor) invest in equity, we are aiming for returns at par or better than the asset class. The Nifty provides us with a widely known and available benchmark that represents that asset class return. The track record showcases the benefits of investing in the equity markets through a scientifically selected basket of mutual funds which historically provide a return significantly superior to the benchmark after considering all expenses.

Annualised Return: We use XIRR for computing return for monthly investments and CAGR for one time investments. This is as per industry norms.

Notes: Since we launched Scripbox equity funds in Jan 2012, returns for investments prior to Jan 2012 are from sample back-tested results based on the application of our scientific selection algorithm.

Debt Mutual Funds

For short term money with safety of capital and a more certain return, the returns of Scripbox debt funds beat inflation.

3-year Minimum Investment Period
to be considered
Long-Term for Tax Purposes
One-Time Investment
On the 1st of period start month
Annualised Return of
Scripbox Debt Portfolio
Jan 2016 - Dec 2016*
11.3%
Jan 2015 - Dec 2016*
9.6%
Jan 2014 - Dec 2016
10.4%
Jan 2013 - Dec 2015
9.0%
Jan 2012 - Dec 2014
10.0%
Jan 2011 - Dec 2013
7.1%
Jan 2010 - Dec 2012
7.6%
* 2 year and 1 year returns.
Will reflect 3 year returns in Dec 2017 and Dec 2018 respectively

Portfolio: The Scripbox debt portfolio illustrated above consists of our 2 recommended debt funds ( Birla Sunlife Dynamic Bond Fund - Retail and Reliance Money Manager ) as of Dec 2015. Because debt funds qualify to be long term after 3 years from a tax perspective, we show their returns on a 3 year time frame (as that’s what a typical investor would get). Starting 25 Aug 2016, we moved Reliance Money Manager to a new fund category called Any Time Cash and also introduced 2 new debt funds. We now have a debt fund portfolio of 3 recommended funds. We will publish the return of this latest debt fund portfolio starting Dec 2017.

Benchmark: While the industry uses various indexes to benchmark debt funds performance, we believe that the real benchmark is FDs. However, there is no official fixed deposit (FD) rates benchmark.

Tax Benefits of Long-Term Debt Funds vs. FDs: FDs provide you with regular interest income on which a 10% tax deduction at source (TDS), when the interest is accrued, immediately reducing the amount that compounds in subsequent years. Also, if your income tax bracket is 20% or 30%, then the net after-tax return of FDs will be further reduced when you file your income tax return and pay any balance tax due. Thus, for example, for someone in the 30% income tax bracket, a FD with a 8% interest rate will actually yield 8% x (1 - 30%) = 5.6% on an after-tax basis, which is even lower than inflation.

On the other hand, debt funds do not provide you with regular interest income but their NAV increases in value over time, as the credit instruments (government or corporate bonds) that comprise the debt fund portfolio pay out interest. However, once they become “long-term” from a tax perspective, after a minimum holding period of 3 years, they are eligible for a tax treatment called indexation. This allows you to use an inflation index published by the Income Tax Department to adjust the purchase NAV upwards by an inflation index, thereby reducing the gain (sale NAV - index adjusted purchase NAV). This reduced gain is then taxed at a flat rate of 20%, which is typically results in much lower taxes than equivalent FDs. Read more about indexation here.

Notes: Since we launched Scripbox debt funds in Oct 2014, returns for investments prior to Oct 2014 are back-tested results based on the application of our scientific selection algorithm.