Mutual funds in India have witnessed significant growth over the past five years, with various funds outperforming their benchmarks and delivering exceptional returns. If you're looking for the top-performing mutual funds over this timeframe, here are some noteworthy ones based on their returns and investment strategies.
1. Quant Small Cap Fund
5-Year Annualized Return: Approximately 37%
Portfolio Composition: Predominantly small-cap equities, accounting for over 46% of the fund's investments.
Key Holdings: LT Foods, PCBL, Sobha, and South Indian Bank.
Risk: High due to its concentration in small-cap stocks, making it suitable for investors with a higher risk appetite
2. Motilal Oswal ELSS Tax Saver Fund
5-Year Return: Approximately 198% (annualized return: 24.3%)
Investment Style: Focuses on equity-linked savings schemes, with 99% of its portfolio in equities across small-cap, mid-cap, and large-cap stocks.
Key Holdings: Zomato, Gujarat Fluorochemicals, and Trent.
Tx Advantage: Offers deductions under Section 80C with a three-year lock-in period, making it attractive for tax-saving and wealth generation
3. ICICI Prudential Equity & Debt Fund
5-Year Annualized Return: Around 16.2%
Portfolio Composition: A balanced mix of 74% equity and 19.7% debt, focusing primarily on large-cap stocks like ICICI Bank, HDFC Bank, and NTPC.
Suitability: Ideal for moderate-risk investors seeking balanced growth
4. Nippon India Power and Infrastructure Fund
5-Year Return: Approximately 365% cumulative (annualized return: ~30%).
Sector Focus: Infrastructure and power-related equities, making it sector-specific.
Key Holdings: Stocks from infrastructure-related companies, suitable for investors bullish on India’s infrastructure growth
Factors to Consider When Choosing High-Performing Funds
Risk Appetite: High-return funds often come with high volatility. Small-cap funds, such as Quant Small Cap Fund, demand a long-term investment outlook.
Expense Ratios: Funds like Quant Small Cap Fund and Motilal Oswal ELSS offer competitive expense ratios under 1%, ensuring higher net returns.
Time Horizon: For funds like ELSS, a minimum three-year lock-in is mandatory, while others may require a 5-7 year horizon for optimal growth.
Diversification: Balanced funds like ICICI Prudential Equity & Debt Fund mitigate risks with a diversified portfolio.
Conclusion
The choice of the best mutual fund depends on your financial goals, risk tolerance, and investment horizon. Funds like Quant Small Cap and Motilal Oswal ELSS have delivered stellar returns, but they cater to high-risk investors. For moderate-risk profiles, balanced funds like ICICI Prudential Equity & Debt can be more suitable. Always conduct thorough research and consider consulting a financial advisor to align investments with your goals.
1. Which mutual fund has delivered the highest returns over the past 5 years?
The Quant Small Cap Fund has delivered approximately 37% annualized returns, making it one of the top-performing funds.
2. What is the best mutual fund for tax-saving and high returns?
The Motilal Oswal ELSS Tax Saver Fund offers tax benefits under Section 80C and has delivered an annualized return of around 24.3% over 5 years.
3. Are there any mutual funds with a balanced risk profile?
The ICICI Prudential Equity & Debt Fund offers a balanced mix of equity (74%) and debt (19.7%), making it suitable for moderate-risk investors. It has delivered an annualized return of 16.2%.
4. Which mutual fund is ideal for investing in India’s infrastructure sector?
The Nippon India Power and Infrastructure Fund focuses on infrastructure-related stocks and has delivered approximately 30% annualized returns over 5 years.
5. What should I consider before choosing a high-performing mutual fund?
Risk Appetite: High returns often mean higher volatility.
Expense Ratios: Look for funds with competitive expense ratios.
Investment Horizon: Longer horizons (5–7 years) are ideal for optimal growth.
Diversification: Balanced funds can mitigate risks.
6. Who should consider small-cap mutual funds like the Quant Small Cap Fund?
Small-cap funds are best suited for investors with a high-risk appetite and a long-term investment outlook.
7. Why is the Motilal Oswal ELSS Tax Saver Fund attractive?
It offers both high returns and tax benefits with a mandatory three-year lock-in period.
8. How can I decide which mutual fund is right for me?
Evaluate your financial goals, risk tolerance, and investment timeline. Consult a financial advisor if needed.