Mutual funds are an excellent investment option for those who want to diversify their portfolio and get better returns on their investments. With so many options available in the market, it can be challenging to identify the best mutual funds for long-term investment. In this blog, we will explore the top-performing mutual funds in India over the last 10 years.
- Mirae Asset Large Cap Fund: This mutual fund has consistently outperformed its peers over the last decade. It has generated an average annual return of 17.3% over the last 10 years, making it one of the best-performing large-cap funds in India. It has invested in blue-chip companies such as HDFC Bank, Reliance Industries, and ICICI Bank.
- Axis Focused 25 Fund: This fund has a concentrated portfolio of 25 stocks and has generated an average annual return of 18.7% over the last 10 years. It has invested in companies such as HDFC Bank, Kotak Mahindra Bank, and Bajaj Finance. The fund manager’s ability to pick high-quality stocks has contributed to its consistent performance.
- SBI Small Cap Fund: This mutual fund has invested primarily in small-cap companies and has generated an average annual return of 20.7% over the last 10 years. The fund manager’s ability to identify quality small-cap companies has helped the fund deliver consistent returns.
- ICICI Prudential Midcap Fund: This fund has generated an average annual return of 17.8% over the last 10 years. It has invested in mid-cap companies such as City Union Bank, Cholamandalam Investment, and PI Industries. The fund manager’s focus on quality mid-cap companies has helped it deliver consistent returns.
- Franklin India Smaller Companies Fund: This fund has invested in small-cap companies and has generated an average annual return of 18.3% over the last 10 years. The fund manager’s ability to identify quality small-cap companies has helped the fund deliver consistent returns.
In conclusion
the above-mentioned mutual funds have consistently delivered impressive returns over the last decade. However, it is essential to note that past performance does not guarantee future results, and investors should conduct thorough research before investing in any mutual fund. It is advisable to consult a financial advisor before making any investment decisions.
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Frequently Asked Questions (FAQs)
Q: What are mutual funds?
A: Mutual funds are investment vehicles that pool money from multiple investors to invest in various assets such as stocks, bonds, and other securities.
Q: Why should I invest in mutual funds?
A: Mutual funds provide diversification, professional management, liquidity, and convenience to investors. They can help you achieve your financial goals over the long term by providing higher returns than traditional savings accounts.
Q: Which are the best performing mutual funds in India over the last 10 years?
A: Some of the best-performing mutual funds in India over the last 10 years include Mirae Asset Large Cap Fund, Axis Focused 25 Fund, SBI Small Cap Fund, ICICI Prudential Midcap Fund, and Franklin India Smaller Companies Fund.
Q: What is the average annual return generated by these mutual funds over the last 10 years?
A: The average annual return generated by these mutual funds over the last 10 years varies between 17.3% to 20.7%.
Q: Is it safe to invest in mutual funds?
A: Mutual funds are subject to market risks, and there is no guarantee that you will get back your invested capital. However, mutual funds are a relatively safer investment option compared to investing directly in the stock market, as they provide diversification and are managed by professional fund managers.
Q: What factors should I consider before investing in mutual funds?
A: You should consider factors such as the fund’s performance history, the fund manager’s track record, the fund’s investment objectives, the expense ratio, and the risks involved before investing in mutual funds.
Q: How can I invest in mutual funds?
A: You can invest in mutual funds through various channels such as online platforms, mutual fund distributors, and directly through the fund house’s website or office.
Q: Can I withdraw my investment from mutual funds anytime?
A: Yes, mutual funds offer liquidity, and you can withdraw your investment anytime, subject to exit load and other fees as applicable. However, it is advisable to hold your investments for the long term to benefit from compounding returns.
