Mutual Fund Investment: The Indian mutual fund industry is on a remarkable growth trajectory, with assets under management (AUM) doubling over the past five years, growing from Rs 22.26 lakh crore in 2019-20 to Rs 67.09 lakh crore in October 2024. Predictions for the year point to sustained momentum, driven by rising retail participation, favorable market conditions, and robust inflows into equity mutual funds.
Large-cap funds are expected to attract more interest as investors seek safer options amid market valuation concerns. Sectoral and thematic funds, focusing on high-growth industries like technology, healthcare, and renewable energy, are also anticipated to perform well, making mutual funds a key wealth creation tool for long-term investors, and emphasizes the potential of these funds in achieving financial goals through disciplined investing.
The impressive growth of mutual funds over the last decade reflects the strength of the Indian market and wealth creation opportunities available for long-term investors.
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“Funds like Nippon India Small Cap, with a 10-year return of 23.5%, and Motilal Oswal Midcap Fund, yielding 21.6%, demonstrate the potential of small- and mid-cap investments in capturing substantial gains across market cycles. The performance also underscores the importance of efficient fund selection in achieving desired goals. At Tailwind Financial Services, we emphasize the value of consistent returns over time, and these figures highlight our belief in mutual funds as a robust vehicle for wealth creation. With disciplined investment, a well-diversified portfolio can outperform and safeguard against volatility,” informs Vivek Goel, Joint MD of Tailwind Financial Services.
According to Tailwind Financial Services, the following 10 mutual funds have delivered stellar returns over the last five years, outperforming many others in the market. These funds are ranked based on their 5-year returns, with insights into their performance over the last 10 years as well for a broader perspective.
1. Quant Small Cap Fund
- 5-Year Return: 47.4%
- 10-Year Return: 21.9%
- Overview: Quant Small Cap Fund has led the small-cap category, delivering substantial returns over the past five years. This fund focuses on high-growth potential small-cap stocks, though it may involve higher risk due to volatility in smaller companies.
- Ideal for: Aggressive investors looking for maximum growth through small-cap exposure.
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