This article is in continuation of our article titled “Mutual funds performance in the last 20 years”
Don’t you too have the same dilemma that most investors have – invest in a fund that has given reasonably good returns in the long term or a fund that gave good returns in recent years? Long term returns help you understand how a fund has performed in different market scenarios and how it faired or failed. A fund that is 10 years old, would have gone at least one full market cycle if not more. And, short term performance can be an illusion many times. However, the golden rule is that do not invest in a fund based on just past performance. This should be just one of your criteria and not the sole criteria.
These mutual funds have successfully completed a decade and are few of the top performers in the industry.
|Name||Inception Date||Category||Return since launch||Worth of Rs 5,000 SIP since the last 10 years (Rs)|
|HDFC Top 100 Fund||September 3, 1996||Large Cap||19.71%||11.32 L||Invest|
|Canara Robeco Emerging Equities||March 11, 2005||Large and Midcap||16.81%||17.87 L||Invest|
|Franklin India Prima Fund||December 1, 1993||Midcap||19.50%||14.93 L||Invest|
|ICICI Prudential Value Discovery Fund||August 16, 2004||Value||19.72%||13.55 L||Invest|
|Aditya Birla Sun Life Tax Relief 96||March 29, 1996||ELSS||24.17%||13.01 L||Invest|
|HDFC Small Cap Fund Growth||April 3, 2008||Small Cap||13.69%||13.73 L||Invest|
|SBI Equity Hybrid Fund||January 19, 2005||Hybrid||15.17%||11.82 L||Invest|
HDFC Top 100 Fund – Large Cap
HDFC Top 100 Fund is one of the oldest funds in the Indian market. The fund survived the market ups and downs for 22 years and has given a 19.71% return (annualized) since its inception in 1996. It seeks to invest in higher quality, competitive, sustainable businesses by primarily restricting to the S&P BSE 100 Index scrip. A SIP worth ₹5,000 in this fund started 10 years ago is worth ₹11.32 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 11.32 lakhs in just 10 years.
Canara Robeco Emerging Equities Fund – Large and Mid Cap
Launched in 2005, the fund gave 16.81% return since inception. Consistency in performance is the primary quality of the fund. It uses growth-at-a-reasonable approach to pick its companies. It looks for opportunities across various sectors. The fund has 40% invested in large and mid-cap stocks. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹17.87 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 17.87 lakhs in just 10 years.
Franklin India Prima Fund – Mid Cap
Launched in 1993, the fund gave 19.50% return since inception. The fund focuses its portfolio on mid-cap and small-cap funds, with more inclination towards the mid-cap businesses. It follows a growth at a reasonable price strategy. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹14.93 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 14.93 lakhs in just 10 years.
ICICI Prudential Value Discovery Fund – Value Fund
The fund gave 19.72% return since its inception in 2004. The fund through its discovery process aims to invest in stocks which are trading at discount value to their intrinsic value. The manager follows a process of Discovery which involves identifying companies that are well managed, fundamentally strong, and are available at a price, which can be termed as a bargain. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹13.55 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 13.55 lakhs in just 10 years.
Aditya Birla Sun Life Tax Relief 96 – ELSS Fund
One of the oldest ELSS funds, the fund follows a multi-cap strategy. It hunts for companies run by professional management, which have the predictability of earnings and strong moats. The fund gave 24.17% return since its inception in 1996. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹13.01 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 13.01 lakhs in just 10 years.
HDFC Small Cap Fund – Small Cap
Launched in 2008, the fund gave 13.69% return since inception. The fund aims at providing long-term capital appreciation, by investing at least 65% in small-cap companies and targets high-quality small-cap business which is undervalued and have a sustainable business. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹13.73 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 13.73 lakhs in just 10 years.
SBI Equity Hybrid Fund – Hybrid Fund
The fund maintains a steady state 75-25 equity-debt mix. The equity portion is a multi-cap, with high exposure to mid-cap stocks. The debt portion of the portfolio strikes a balance by investing in government securities and corporate bonds. Also, the fund invests in high yielding securities with a minimum rating of A-. However, it also secures the portfolio by investing in government bonds and highly liquid AAA-rated securities. Launched in 2005, the fund gave 15.17% return since inception. A SIP of ₹5,000 p.m. in this fund started 10 years ago is worth ₹11.82 lakhs now. A Rs 6 lakh investment has grown to a whopping Rs 11.82 lakhs in just 10 years.
The above funds are the best performers in their respective categories. The suggestion is not just based on past returns but after considering other indicators. Therefore, it is important to note that the past returns may repeat in the future. Make an informed decision to achieve your long term goals.