Most mutual fund investors hope to get double-digit returns over a long period. That is why ETMutualFunds decided to look for equity schemes that have offered more than 15% returns over the long period. ETMutualFunds considered rolling returns of 253 equity schemes that have been in the market for 10 years.
We considered rolling returns of all equity and equity-oriented schemes for a period of five, seven and 10 year horizons. We looked at equity scheme categories, including large cap, large & mid cap, small cap, multi cap, flexi cap, arbitrage funds, aggressive hybrid funds, focused funds, and ELSS funds. We considered regular plans and the growth option for the study. We filtered the schemes that have offered more than 15% returns in a five, seven and 10- year horizon.
Around 16 equity schemes offered more than 15% returns in five, seven, and 10 year horizons based on rolling returns.
Note, the exercise is just to show that several schemes have offered more than 15% in five, seven and 10 year horizons. Though there might be some schemes that have offered more than 15% returns in any one or two horizons. But they wouldn’t have made to the list as we included only the schemes that have offered more than 15% returns in all three horizons.
Around five small cap schemes made it to the list. Four mid cap schemes, two schemes each from large & mid cap and technology funds, one scheme each from focused fund, contra fund and consumption oriented funds were in the list. No large cap or multi cap scheme made it to the list.
Here’s the list of equity schemes that offered more than 15% return in five, seven and 10 year horizons :
| Scheme Name | Scheme returns (%) | ||
| 5 year | 7 year | 10 year | |
| Axis Midcap Fund | 16.60 | 17.78 | 19.66 |
| Canara Robeco Consumer Trends Fund | 15.53 | 15.80 | 15.44 |
| Canara Robeco Emerging Equities Fund | 17.37 | 20.81 | 18.94 |
| DSP Small Cap Fund | 15.26 | 20.50 | 19.40 |
| Edelweiss Mid Cap Fund | 15.54 | 18.64 | 17.83 |
| HDFC Small Cap Fund | 15.02 | 15.90 | 15.56 |
| ICICI Prudential Technology Fund | 19.12 | 18.30 | 18.12 |
| Invesco India Contra Fund | 15.34 | 16.03 | 15.49 |
| Invesco India Midcap Fund | 15.18 | 17.92 | 17.38 |
| Kotak Emerging Equity Fund | 16.40 | 18.52 | 16.43 |
| Kotak Small Cap Fund | 15.81 | 17.55 | 15.44 |
| Mirae Asset Emerging Bluechip | 19.63 | 22.32 | 22.23 |
| Nippon India Small Cap Fund | 19.13 | 21.85 | 22.68 |
| SBI Focused Equity Fund | 15.04 | 16.97 | 16.50 |
| SBI Small Cap Fund | 20.67 | 22.98 | 21.63 |
| SBI Technology Opportunities Fund | 17.16 | 16.78 | 18.98 |
Source: ACE MF, Rolling returns as on March 6 2023
For the five year horizon, the rolling returns were calculated starting from March 6, 2018 to March 6, 2023. For the seven-year period, we calculated rolling returns starting from March 6, 2016 to March 6, 2023. For the 10-year horizon, the rolling returns were calculated starting from March 6, 2013 to March 6, 2023.
SBI Small Cap Fund was the only scheme that offered more than 20% in all three horizons selected for study. In the five and seven year horizons, SBI Small Cap Fund offered the maximum returns. The scheme offered 20.67% in five years and 22.98% return in seven years. In the 10 year horizon, Nippon India Small Cap Fund offered the highest return of around 22.68%.
Note, this exercise is just to find scheme that offered more than 15% return in five, seven and 10 year horizons. This is not a recommendation. You should not make or redeem your investment based on this exercise. You need to include other important factors such as risk profile, investment horizon, and your goal to identify suitable scheme for investment.
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As someone deeply immersed in the intricacies of mutual funds and equity investments, I can attest to the comprehensive nature of the analysis conducted by ETMutualFunds. The quest for double-digit returns is a common aspiration among mutual fund investors, and the methodology employed by ETMutualFunds is rigorous and meticulous.
The focal point of their investigation was the examination of rolling returns across 253 equity schemes with a tenure of 10 years in the market. This extended timeframe provides a robust perspective on the funds' performance, mitigating the impact of short-term market fluctuations. The consideration of rolling returns over five, seven, and 10-year horizons adds granularity to the evaluation, allowing for a nuanced understanding of the funds' consistency and resilience.
Crucially, ETMutualFunds delved into various equity scheme categories, including large cap, large & mid cap, small cap, multi cap, flexi cap, arbitrage funds, aggressive hybrid funds, focused funds, and ELSS funds. By incorporating diverse categories, they ensured a holistic view of the market, acknowledging that different investors may have varying risk appetites and investment preferences.
The inclusion of regular plans and growth options in the study showcases a keen awareness of the nuances within mutual fund structures. This demonstrates a commitment to providing insights that align with the diverse needs and preferences of investors.
The filtering process, focusing on schemes that consistently offered more than 15% returns across all three horizons (five, seven, and 10 years), adds a layer of stringency to the selection criteria. This approach is noteworthy as it narrows down the list to those funds that have demonstrated sustained outperformance over a significant period.
The resulting list of 16 equity schemes, spanning small cap, mid cap, large & mid cap, technology funds, focused fund, contra fund, and consumption-oriented funds, is a testament to the diversity of avenues available for investors seeking robust returns. Notably, the absence of large cap and multi cap schemes from the list highlights the specificity of the criteria and the unique characteristics of the selected funds.
The detailed breakdown of individual schemes, their respective returns over different time horizons, and the acknowledgment that this exercise is not a recommendation but rather a presentation of historical performance further emphasizes the transparency and responsibility in the reporting.
In conclusion, this comprehensive analysis by ETMutualFunds serves as a valuable resource for investors looking to navigate the complex landscape of mutual funds. It goes beyond mere performance metrics, considering factors such as fund category, investment horizon, and risk profile. However, it's essential for investors to complement such analyses with a consideration of their individual financial goals, risk tolerance, and broader market conditions before making investment decisions.
