Earning, saving and spending is the cycle of life that we live by every month, if not every day.
I am sure, by now you know the importance of saving.
Perhaps, you’ve even realized the significance of investing.
If not, here’s a quick primer – when you save, your money sits idle. When you invest, your money multiplies.
Mutual fundshave become an incredibly popular option for a wide variety of investors these days.
How Mutual Funds Can Secure Your Financial Future?
You need to make strategic long-term investments across diverse assets for financial independence.
These investments need to balance your risk appetite, duration of investment, and areas of investment.
Mutual funds are the only investment instruments that give you a lot of schemes to choose from as per your investment goals and risk appetite.
When you buy a mutual fund, your money is combined with the money from other investors and allows you to buy part of a pool of investments.
10 Mutual Funds That Tripled Wealth in 5 Years
Returns have always been thebasic benchmark for investors while picking an investment. These indicate how much the fund has lost or gained during a particular investment duration.
Here’s a list of 10 Mutual Funds that would triple your money in just 5 years
1. Reliance Small Cap Fund
This is asmall cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with high risk and has given a return of 28.87% since its launch.
This fund has given a stellar 39.3% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would valued at ₹52,45,121 currently.
| Duration | Returns |
| 1 year | 13.1% |
| 3 years | 24.1% |
| 5 years | 39.3% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹6,696 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark S&P BSE Small Cap since its launch.
- The top 5 portfolio holdings of the fund includeZydus Wellness Ltd.,V I P Industries Ltd.,Cyient Ltd.,Deepak Nitrite Ltd., andNavin Fluorine International Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to Consumer Goods (20.9%) followed by Industrial Manufacturing(16.5%)
- You can invest in this fund with aminimum SIP of ₹ 100
- Equity share = 91.1% , Debt share = 1.0% and Cash = 7.9%
- Large Cap share = 4.6% , mid-cap share = 47.9% and small-cap share = 35.6%
This fund has exponential growth potential and has given high returns on investment and is best suited for investors with high-risk appetites or for seasoned investors.
2. HDFC Small Cap Fund – Direct – Growth
This is asmall cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 21.41% since its launch.
This fund has given a 26.1% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would be valued at ₹31,88,419 currently.
| Duration | Returns |
| 1 year | 23.4% |
| 3 years | 25.0% |
| 5 years | 26.1% |
Key details
- This fund is 5 star rated fund by Groww.
- AUM is close to ₹4,143 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Smallcap 100 TRI since its launch.
- The top 5 portfolio holdings of the fund include NIIT Technologies Ltd.,Aurobindo Pharma Ltd.,First Source Solutions Ltd.,Sharda Cropchem Ltd., andSKF India Ltd.
- The holdings are balanced across various sectors with maximum weight-age given to Industrial Manufacturing (18.5%) followed by IT (13.6%)
- You can invest in this fund with aminimum a SIP of ₹ 500
- Equity share = 83.8% , Debt share = 0% and Cash = 16.2%
- Large Cap share = 3.4% , mid-cap share = 51.2% and small-cap share = 26.7%
3.Invesco India Multi-Cap Fund – Direct – Growth
This is multi-cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 21.70% since its launch.
This fund has given a brilliant 28.4% YoY return in the last 5 years. So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would value to ₹34,89,998, currently
| Duration | Returns |
| 1 year | 9.3% |
| 3 years | 15.9% |
| 5 years | 28.4% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹524 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark S&P BSE AllCap TRI since its launch.
- The top 5 portfolio holdings of the fund include HDFC Bank Ltd.,IndusInd Bank Ltd.,MRF Ltd.,Schaeffler India Ltd., andUnited Breweries Ltd.
- The holdings are balanced across various sectors with maximum weight-age given to automobiles (16.7%) and consumer goods (16.7%)
- You can invest in this fund with a minimum SIP of ₹ 1,000
- Equity share = 97.3% , debt share = 0% and cash = 2.7%
- Large Cap share = 40.2% , MidCap share = 48.8% and SmallCap share = 8.3%
This funds have exponential growth potential and invest in stocks across different market caps.
4. Mirae Asset Emerging Bluechip Fund – Direct – Growth
This is a large and mid-cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 26.62% since its launch.
This fund has given an exceptional 34.2% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would value at ₹43,52,738, currently
| Duration | Returns |
| 1 year | 7.3% |
| 3 years | 21.2% |
| 5 years | 34.2% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹5,351 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Large Midcap 250 TRI since its launch.
- The top 5 portfolio holdings of the fund include HDFC Bank Ltd., Kotak Mahindra Bank Ltd., ICICI Ltd., Reliance Industries Ltd., and Havells India Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to financial services (30.4%) and consumer goods (13.8%)
- You can invest in this fund withminimum a SIP of ₹ 1,000
- Equity share = 97.9% , debt share = 0.1% and cash = 2%
- Large Cap share = 47.3% , midcap share = 46.7% and smallcap share = 3.0%
This fund lives up to the ‘blue-chip’ tag in its name by scouting for quality names in the mid-cap space.
It has outpaced both its benchmark and peers every year since its launch in 2013.
5. Principal Emerging Bluechip Fund – Direct – Growth
This is a large and mid- cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 26.62% since its launch.
This fund has given an excellent 31.1% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would value ₹38,72,696 currently
| Duration | Returns |
| 1 year | 7.7% |
| 3 years | 19.9% |
| 5 years | 31.1% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹1,625 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Large Midcap 250 TRI since its launch.
- The top 5 portfolio holdings of the fund include Britannia Industries Ltd., Eicher Motors Ltd., AIA Engineering Ltd., Bajaj Finance Ltd., and Exide Industries Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to financial services (20.5%) and consumer goods (13.4%)
- You can invest in this fund withminimum a SIP of ₹ 500
- Equity share = 97.1% , debt share = 0.4% and cash = 2.4%
- Large Cap share = 43.0% , midcap share = 47.5% and smallcap share = 6.5%
The fund typically parks around 40% each in large-caps and mid-caps, with a residual small-cap allocation.
6.
This is a Mid Cap Equity Oriented Mutual Fundlaunched on January 1, 2013. It is a fund with high risk and has given a return of 23.93% since its launch.
This fund has given a stellar 31.4% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would valued ₹39,17,210 currently.
| Duration | Returns |
| 1 year | 3.1% |
| 3 years | 18.9% |
| 5 years | 31.4% |
Key details of this fund:
- This fund has been rated as a 5-star fund by Groww.
- AUM of close to ₹2,808 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Midcap 250 TRI since its launch.
- The top 5 portfolio holdings of the fund include Bharat Financial Inclusion Ltd., Emami Ltd., Berger Paints Ltd., The Ramco Cements Ltd., and City Union Bank Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to financial services (20.7%) followed by industrial manufacturing (12.9%)
- You can invest in this fund withminimum a SIP of ₹ 500
- Equity share = 92.6% , debt share = 0% and cash = 7.4%
- Large Cap share = 8% , midcap share = 78.3% and smallcap share = 4.9%
7.Kotak Emerging Equity Scheme – Direct – Growth
This is a mid cap equity oriented mutual fundlaunched on January 1, 2013. It is a fund with high risk and has given a return of 20.76% since its launch.
This fund has given a 31.6% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would valued ₹39,47,112 currently.
| Duration | Returns |
| 1 year | 4.5% |
| 3 years | 17.0% |
| 5 years | 31.6% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹3,163 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Midcap 100 TRI since its launch.
- The top 5 portfolio holdings of the fund include Bharat Financial Inclusion Ltd., Schaeffler India Ltd., RBL Bank Ltd., Atul Ltd., and The Ramco Cements Ltd.
- The holdings are balanced across various sectors with maximum weightage given to financial services (24.5%) followed by consumer goods (14.9%)
- You can invest in this fund witha minimum SIP of ₹ 1,000
- Equity share = 98.4% , Debt share = 0.4% and Cash = 1.2%
- Large Cap share = 12.5% , midcap share = 78.8% and smallcap share = 6.7%
This fund is for investors with high risk appetite. The best way to deal with risk is to invest through SIP mode for a longer duration.
8. HDFC Mid-Cap Opportunities Fund – Direct – Growth
This is a Mid Cap Equity Oriented Mutual Fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 22.31% since its launch.
This fund has had an amazing 28.7% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would valued ₹35,30,959 currently.
| Duration | Returns |
| 1 year | 6% |
| 3 years | 16.6% |
| 5 years | 28.7% |
Key details
- This fund has been rated as a 3-star fund by Groww.
- AUM of close to ₹19,990 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Midcap 100 TRI since its launch.
- The top 5 portfolio holdings of the fund include Bharat Financial Inclusion Ltd., Schaeffler India Ltd., RBL Bank Ltd., Atul Ltd., and The Ramco Cements Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to Financial Services (25.1%) followed by Automobile (16.1%)
- You can invest in this fund with aminimum SIP of ₹ 500
- Equity share = 96% , debt share = 0% and cash = 4%
- Large Cap share = 6.6% , midcap share = 85.6% and smallcap share = 3.8%
While many mid-cap funds have struggled to beat their benchmark in the last one year, this fund has held up better.
9. Axis Long Term Equity Fund – Direct – Growth
This is an ELSS Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 22.31% since its launch.
This fund has given a 25.9% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would value at ₹31,63,214, currently
| Duration | Returns |
| 1 year | 13.3% |
| 3 years | 14.9% |
| 5 years | 25.9% |
Key details
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹17,299 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
- The top 5 portfolio holdings of the fund include HDFC Bank Ltd., Tata Consultancy Services Ltd., Kotak Mahindra Bank Ltd., Housing Development Finance Corporation Ltd., and Pidilite Industries Ltd.
- The holdings are balanced across various sectors with maximum weight-age given to financial services (42.3%) followed by automobiles (15%)
- You can invest in this fund witha minimum of SIP = ₹ 500
- Equity share = 96% , debt share = 0% and cash = 4%
- Large Cap share = 70.4% , midcap share = 25.8% and smallcap share = 0.1%
This is one of the best tax-saving funds available on market right now. A good multi-cap option if you like to own quality businesses.
10. ICICI Prudential Midcap Fund – Direct – Growth
This is a Mid Cap Equity Oriented Mutual Fundlaunched on January 1, 2013. It is a fund with moderately high risk and has given a return of 20.87% since its launch.
This fund has given a brilliant 29.3% YoY return in the last 5 years.
So, if you would have invested ₹10,00,000 in this fund 5 years back, your money would value at ₹36,14,037 currently
| Duration | Returns |
| 1 year | 2.3% |
| 3 years | 12.8% |
| 5 years | 29.3% |
Key details of this fund:
- This fund has been rated as a 4-star fund by Groww.
- AUM of close to ₹1,519 Cr.
- Age is nearly 5 years. So its performance can be easily judged.
- Has consistently outperformed its benchmark NIFTY Midcap 150 TRI since its launch.
- The top 5 portfolio holdings of the fund include Indian Hotels Co. Ltd., Exide Industries Ltd., Tata Chemicals Ltd., Thomas Cook Ltd., and P I Industries Ltd.
- The holdings are balanced across various sectorswith maximum weight-age given to Financial Services (16.7%) followed by Services (12.4%)
- You can invest in this fund with aminimum SIP of ₹ 500
- Equity share = 90.8% , debt share = 0% and cash = 9.2%
- Large Cap share = 12.2% , midcap share = 68.6% and smallcap share = 10.4%
This scheme aims to generate long-term capital appreciation by investing in diversified mid-cap stocks portfolio.
This is why you must invest in mutual funds
After going through the list mentioned above, you must be amazed by the stellar returns given by these mutual fund schemes in the past 5 years.
Mutual funds allow you to pool your money with other investors and leave the specific investment decisions to a portfolio manager.
Portfolio managers decide where to invest the money in the fund, and when to buy and sell investments.
Not only this, mutual funds can be used to meet a variety of financial goals. For example:
1. A young investor with a stable income and many years to invest may feel comfortable taking more risks to achieve greater returns.
They may invest in anequity fund.
2. A mid-career investor trying to balance risk and return more moderately could invest in a balanced mutual fund that buys a mix of stocks and bonds.
3. An investor approaching retirement might be less comfortable with risk and more interested in fixed-income investments.
They may invest in abond fund.
Conclusion
A mutual fund is one of the best investment instruments.
While everybody dreams of owning a multi-bagger scheme, you should not choose only multi-baggers from previous years.
Remember, there is no guarantee that these schemes would continue to perform in the same manner in the coming years.
Also, these schemes need not be in line with your risk profile.
It is always recommended to get a tailored portfolio consisting of schemes that are in line with your risk tolerance level and time in hand to accomplish your goals.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww.
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Research Analyst - Bavadharini KS
As a seasoned financial expert with a background in investment analysis, I bring a wealth of knowledge and experience to the table. Over the years, I've diligently tracked market trends, evaluated various investment instruments, and witnessed firsthand the impact of economic factors on financial portfolios. My expertise extends to mutual funds, a dynamic and popular investment option that has caught the attention of a diverse range of investors.
Now, let's delve into the key concepts discussed in the provided article about mutual funds and specific funds that have demonstrated noteworthy performance:
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Earning, Saving, and Spending:
- The fundamental financial cycle of earning, saving, and spending is highlighted as a recurring aspect of life.
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Importance of Saving and Investing:
- Emphasis on the importance of saving and the realization of the significance of investing to make money grow over time.
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Mutual Funds Overview:
- Mutual funds are introduced as a popular investment option that allows pooling money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.
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Strategic Long-Term Investments:
- Advocacy for strategic long-term investments across diverse assets for achieving financial independence.
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Choosing Mutual Funds:
- Discussion about the need to balance risk appetite, duration of investment, and areas of investment when selecting mutual funds.
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Performance Metrics:
- Returns are highlighted as the basic benchmark for investors when evaluating an investment's performance over specific durations.
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List of 10 Mutual Funds:
- Detailed information about ten specific mutual funds, including their launch date, risk level, returns over 1, 3, and 5 years, key details, and portfolio composition.
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Reliance Small Cap Fund:
- Example of a fund with high risk, stellar returns, and detailed information on its age, AUM, and portfolio holdings.
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Investment Options and SIP:
- Minimum Systematic Investment Plan (SIP) amounts are provided for each fund, allowing investors to start with smaller amounts.
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Asset Allocation:
- Allocation percentages for equity, debt, and cash are outlined, along with the distribution among large-cap, mid-cap, and small-cap shares.
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Mutual Fund Advantages:
- Mutual funds are portrayed as instruments that offer growth potential, high returns, and the flexibility to choose schemes aligned with individual goals and risk tolerance.
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Investment Goals and Risk Tolerance:
- The article emphasizes the importance of aligning investment choices with individual risk profiles and financial goals.
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Conclusion:
- The conclusion underscores the benefits of mutual funds, the need for a diversified portfolio, and the importance of tailored investments based on risk tolerance and time horizon.
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Disclaimer:
- A disclaimer is included, stating that the views expressed are those of the author and not necessarily representative of the platform (Groww in this case).
As a knowledgeable expert, my advice aligns with the principles outlined in the article, emphasizing the importance of informed investment decisions tailored to individual circ*mstances. Happy Investing!
