Mutual Fund Schemes That Delivered the Best Returns in Past 20 Years

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We have often heard that there are schemes which provide better returns in the long-run, and this is especially true in the case of equity mutual funds. A mutual fund investor who has followed a disciplined strategy to investing will surely vouch for this statement.

If you, being a new investor, wish to seek evidence of this, then this blog is particularly written for you. However, it should be noted that the past performance of these schemes is not an indicator of their future outcomes.

Some of the top performers of the equity market in the past 20 years include:

1. HDFC Capital Builder Fund 
   This fund of HDFC Mutual Fund seeks to invest in companies that are priced below their fair value; thereby generates capital appreciation in the long-term horizon. The HDFC Capital Builder Fund scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments. The top holdings of this scheme are HDFC Bank, ITC, Reliance, Yes Bank, and Gail, and the weightage to these sectors is around 24.89%.
2. ICICI Prudential MultiCap Fund 
   This scheme seeks to achieve long-term capital appreciation by allocating its capital in the core sectors of the economy such as the telecom, energy, transportation, and financial services. George Joseph and Mr. Atul Patel are managing the scheme. It implies an exit load of 1% in case of redemption before 365 days. The top three sectors in which the ICICI Prudential MultiCap Fund scheme has invested include Banking/Finance, Pharmaceuticals, oil, and gas and the allocation percentage to these segments is about 38.97%.
3. Franklin India Prima Fund 
   It is an open-end growth scheme with an objective to provide medium to long-term capital appreciation along with a source of income. The scheme has consistently outpaced its benchmark for the last twenty years. Franklin India Prima Fund has proved its worth extremely adaptable to market cycles, keeping up its outperformance despite ups and downs in market preferences. This is the reason why it has enabled it to hold onto a four and five-star rank for the last four years.
4. Reliance Growth Fund 
   This scheme of Reliance Mutual Fund aims at long-term growth of capital through research-based investment approach. The maximum allocation is done in equity and equity-related instruments, and the remaining exposure is given to debt and money-market instruments. The Reliance Growth Fund scheme is ranked 2 in diversified equity category by Crisil.

Details of their Past Returns:

Source: MySIPonline Research Desk

Graphical Representation:

Absolute Returns:

Source: MySIPonline Research Desk

Annualized Returns:

Source: MySIPonline Research Desk

The motive of listing such strong performers is to let you know the importance of smart investing these days. We have told it several times that the earlier, the better it is. So, why are you still finding hard to invest your idle money in this lucrative investment option?

Don’t restrict the growth of your money by putting it in instruments which offer not more than 6-7% returns, invest in a reliable scheme of mutual funds and open the door of opportunities for you. For investment, it is essential to consider your objective, tenure, and risk profile. In case you wish assistance in knowing the same, connect with us for at MySIPonline.