Best Performing Mutual Funds in India Last 5 Years (2024)

FAQs

Best Performing Mutual Funds in India Last 5 Years? ›

You are investing in good schemes through monthly SIPs and the current amount is Rs 40,000. To achieve the goal of Rs 1 Crore after 5 years, you need to invest Rs 117,000 per month, assuming annual return of 12%. Even if we assume the return to be 15%, it comes to Rs 107,000 per month.

You are investing in good schemes through monthly SIPs and the current amount is Rs 40,000. To achieve the goal of Rs 1 Crore after 5 years, you need to invest Rs 117,000 per month, assuming annual return of 12%. Even if we assume the return to be 15%, it comes to Rs 107,000 per month.

It has an average annual growth rate of 21.08 percent and has given a return of 14 percent in the last year. If a SIP of Rs 10,000 had been started in it 5 years ago, today this amount would have been Rs 12.72 lakh. The fund has given an annual return of 30.62 percent in these five years.

According to Post Office RD Calculator, if you invest Rs 5,000 per month for five years the total return on your investment will be Rs 48,740 (with monthly compounding frequency). So the total amount that you will get after five years would be Rs 3,48,740.

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

Most mutual fund managers and advisors have been warning that the stock market may offer muted returns in 2023. Sure, like most forecasts this may also prove wrong. However, the consensus is that you should be happy with single-digit returns from your equity mutual funds in 2023.

What if I invest $50,000 per month in mutual fund? ›

By investing Rs 50,000 per month one time, he could look to accumulate Rs. 19.16 lakhs in twenty years with 20% annualized returns. We have taken a weighted average of the return of each fund after considering the lower 3-year and 5-year returns as the return over the 20 years.

Value of Rs 50000 per month SIP

Here is what a Rs 50,000 monthly in a Systematic Investment Plan can do over the years: 5 year SIP of Rs 50000 monthly = Rs 42 lakh. 10 year SIP of Rs 50000 monthly = Rs 1.1 crore. 15 year SIP of Rs 50000 monthly = Rs 2.5 crore.

More About the 15x15x15 Rule for Mutual Fund Investments

It says that if you invest Rs. 15,000 per month via SIP in an equity mutual fund that is capable of generating an average return of 15%, you are most likely to become a crorepati in 15 years (as stated in the example above).

In investment, the five percent rule is a philosophy that says an investor should not allocate more than five percent of their portfolio funds into one security or investment. The rule also referred to as FINRA 5% policy, applies to transactions like riskless transactions and proceed sales.

If you invest ₹2 lakh per month for 5 years (total of 60 installments), you would have invested ₹1.2 crore over the period. If you assume a 12% annualized return over the period, you can expect to have ₹1.7 crore at the end of the investment tenure.

New investors often tend to panic during bad market phases or when they lose lot of money. Assuming an annual return of 12%, you need to invest around Rs 21,500 every month to create Rs 50 lakh in 10 years. Similarly, you need to invest around Rs 39,500 every month to create Rs 2 crore in 15 years.

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore).

The investor should invest Rs. 43,500 per month to create a corpus of Rs. 1Crs in 10 years assuming return of 12% pa. As this is long term investment goal, investor may consider the below equity Mutual fund schemes.

If an investor invests 20,000 per month for 10 years at the interest rate of 12%, he will be able to generate INR 47 lakh, i.e., more than double the amount he earned in the first five years. In addition, the earnings in 15 years will double the income that an investor had generated in the first 10 years.

How much to invest to get $100,000 in 5 years? ›

If you can afford to put away $1,400 per month, you could potentially save your first $100k in just 5 years. If that's too much, aim for even half that (or whatever you can). Thanks to compound interest, just $700 per month could become $100k in 9 years.

The longer an investment window you give yourself, the more wealth you might gain over time. It's a smart idea to invest extra cash in 2023 if you're managing your bills well. Before you invest, make sure you have money set aside for emergencies and eliminate high-interest debt.

There is no best time as such for investing in mutual funds. Individuals can make investments in mutual funds as and when they wish. But it is always better to catch the funds at a lower NAV rather than higher price. It will not only maximise your returns but also lead to higher wealth accumulation.

If you are actually looking at equity funds to help you achieve your long term goals then you at least need to give yourself a holding period of 8-10 years. For debt funds, the outlook on rates should be your key driver for holding period.. Unlike equity funds, the debt funds do not really depend on long term holding.

Money market mutual funds = lowest returns, lowest risk

They are considered one of the safest investments you can make. Money market funds are used by investors who want to protect their retirement savings but still earn some interest — often between 1% and 3% a year. (Learn more about money market funds.)

Good Average Annual Return for a Mutual Fund

For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8% to 10%. For bond mutual funds, a good long-term return would be 4% to 5%.

How much dollar a person can keep in India? ›

Foreign Currency-

However, amounts exceeding USD 5,000 or equivalent and foreign exchange in the form of currency notes, bank notes or traveller's cheques in exceeding USD 10,000 or its equivalent must be declared to the customs.

∴ The money will quadruple itself in 21 years.

10,000 in mutual funds can generate substantial returns over a long investment period. The returns will be dependent on various factors like the choice of fund, market trends, and the performance of the particular scheme.

So, in the first year you will have an SIP of Rs 5,000 per month, in the second year it will be Rs 5,500 (Rs 5,000+10 per cent of Rs 5,000), in the third year it will be Rs 6,050 (Rs 5,500 + 10 per cent of Rs 5,500) and so on. This will help you to meet your target corpus of Rs 1 core in 21 years. See table below.

Rs 1 lakh SIP: It would take 5 years 10 months to reach Rs 1 crore with Rs 1 lakh monthly SIP in a mutual fund scheme. Increasing the SIP amount by 5% annually would let you reach Rs 1 crore in 5 years 5 months at 12% interest.

(You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.

You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.

The rule stipulates investing 90% of one's investment capital towards low-cost stock-based index funds and the remainder 10% to short-term government bonds.

In general, to comply with the rule, an investment company with a name that suggests that the company focuses on a particular type of investment will either have to adopt a fundamental policy to invest at least 80% of its assets in the type of investment suggested by its name or adopt a policy of notifying its ...

What is the 75% rule for mutual funds? ›

75% of the fund's assets must be invested in other issuer's securities, no more than 5% of the fund's assets may be invested in any one company, and the fund may own no more than 10% of an issuer's outstanding securities.

The rule of 70 is used to determine the number of years it takes for a variable to double by dividing the number 70 by the variable's growth rate. The rule of 70 is generally used to determine how long it would take for an investment to double given the annual rate of return.

If you invest the amount i.e Rs 1000 per month for 20 years, you have deposited a total of Rs 2.4 lakh during the period. On the basis of the annual 15 per cent return in 20 years, you will get about 15 lakh 16 thousand rupees. If this return is 20 per cent annually, the total fund will be around 31.61 lakhs.

In this regard, as one of the basic rules of financial planning, the asset allocation or 10-5-3 rule states that long-term annual average returns on stocks is likely to be 10%, the return rate of bonds is 5% and cash, as well as liquid cash-like investments, is 3%.

Each monthly SIP that you invest must compound itself at 155% per annum to enable you to reach Rs. 1 crore in 3 years. The best case returns that you can expect on an equity fund are around 17-18% annualized. Even that is only under extremely good market conditions.

Under this rule, the first 15 stands for the monthly investment that you need to make. That is, your monthly SIP amount will be Rs. 15,000. – The second one stands for your investment tenure of 15 years i.e., to achieve the mentioned goal of 1 crore, you need to invest 15000 every month for 15 years.

#1: Fidelity Select Software & IT Services

Fidelity Select Software & IT Services (FSCSX (opens in new tab), $18.45) has not only survived the Crash of 1987, the Tech Wreck of 2000-02 and the Great Recession, but it has emerged as the top-performing fund since inception.

What is the average return on mutual funds in the last 10 years? ›

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

1) Axis Bluechip Fund

The Axis Mutual Fund has managed the fund since its inception in 2010. The fund has a long-term track record of generating returns for investors and is one of the most popular funds in India. The fund invests in stocks across sectors and has a long-term record of generating investor returns.

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market.

Mutual funds have sales charges, and that can take a big bite out of your return in the short run. To mitigate the impact of these charges, an investment horizon of at least five years is ideal.

For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8% to 10%. For bond mutual funds, a good long-term return would be 4% to 5%. For more precise, “apples to apples” comparisons, use a good online mutual fund screener.