The biggest advantage of investing in mutual funds is that if you choose the ‘right fund’ and stick with it for the long term, your money can grow very fast. However, finding this ‘right fund’ can be a challenging task. That’s why it’s wise to do some research on your own or seek guidance from a qualified financial advisor who can help you find the one capable of generating decent long-term returns.
In the mutual fund space, a ‘decent return’ can be subjective. But for this story, we are assuming a benchmark return of 15% CAGR.
Seasoned investors would agree that a 15% return is quite achievable over the long term, provided one is disciplined and sticks to the fundamentals of mutual fund investing. To show how such returns are possible, here are some real examples from two prominent mutual fund categories: large-cap funds and flexi-cap funds.
Also read: Best Tata Mutual Fund: Rs 1,000 monthly SIP grows to over Rs 1 crore in 30 years
We have chosen these two categories, as large-cap funds tend to earn investors’ trust as they invest in well-established, blue-chip companies. Flexi-cap funds, on the other hand, allocate assets dynamically across market capitalisations based on prevailing market conditions. These two categories offer valuable insights into investor sentiment and market trends.
So, here are some funds (direct plan) from these two categories that have delivered returns exceeding 15% over the last 10 years.
Top 3 large-cap funds with more than 15% returns in 10 years
- Quant Focused Fund
The large-cap focussed fund has delivered a 15.52% annualised return in 10 years. Its 3-year and 5-year returns have been even better at 19.82 and 27.17%, respectively.
- Nippon India Large Cap Fund
This Nippon India fund has earned investors a 15.09% return on an annualised basis over the last 10 years. Its 3-year and 5-year returns too have been quite good at 24.14% and 29.83%, respectively.
- Canara Robeco Bluechip Equity Fund – Direct Plan 15.04%
This blue-chip focused mutual fund scheme has given a CAGR return of 15.04% in the last 10 years. The fund’s returns in 3 years and 5 years have been 19.18% and 23.67%, respectively.
Also read: 3 top-rated cheapest small-cap funds: Investment grows over 5 times in five years
Top 3 flexi-cap funds with over 15% returns in 10 years
- Quant Flexi Cap Fund
This flexi-cap fund has generated an annualised return of 19.81% over the last 10 years.
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