Mutual funds are frequently viewed as a type of investment that can be trusted to help one accumulate wealth for the future. Mutual funds can help you achieve all of your objectives, both short- and long-term. The assets are distributed among numerous equities and debt instruments by these funds, allowing the invested capital to increase over time. It’s also interesting to note that mutual funds offer a variety of stock, debt, and hybrid fund options to suit the needs of investors with various risk tolerances and time horizons. You would want to know the 10-year returns of the aforementioned asset class if you were considering making long-term investments in mutual funds, wouldn’t you? The post lists the top mutual fund performers over a ten-year period for all categories.
INDEX FUNDS
Index mutual funds make investments in stocks that track indices like the BSE Sensex, NSE Nifty, etc. Since the fund manager invests in the same securities and in the same proportion as the underlying index, these mutual funds are passively managed. These funds aim to provide returns that are consistent with the selected index.
Motilal Oswal-
About:The expense ratio of the fund is 0.31%. Its trailing returns over different time periods are: -6.58% (1yr), 26.96% (3yr) and 26.02% (since launch). Whereas, Category returns for the same time duration are: -2.01% (1yr), 31.15% (3yr) and 13.08% (5yr).
Objective: The investment objective of the Scheme is to achieve long term capital appreciation by investing in quality mid-cap companies having long-term competitive advantages and potential for growth.
LARGE CAP FUNDS
Mutual funds that invest primarily in large market capitalization companies are referred to as large cap funds. Comparatively speaking, these funds are less risky than small-cap or mid-cap funds.
Nippon India Large Cap-
About: This fund was established on January 1, 2013, making it ten years and one million. Nippon India Large Cap Fund Direct-Growth is a medium-sized fund in its category with assets under management (AUM) as of December 31, 2022, totaling 12,536 Crores. The cost ratio for the fund is 1.01%, which is about average for Large Cap funds.
Check out the Nippon Life India Mutual Funds AMC Page
Objective: The Nippon India Large Cap Fund Direct-Growth programme has a higher consistency of return delivery than most funds in its class. It has a mediocre capacity to limit losses in a down market. The top 5 holdings of the fund are HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., ., and Housing Development Finance Corporation Ltd.
MID CAP FUNDS
Mid Cap Funds make investments in the stock and securities of mid-cap firms. Companies with a market capitalization ranking of 101 to 250 are considered mid-cap companies. When compared to large cap funds, these funds are the best option for investors seeking higher returns at a little higher level of risk.
SBI Magnum Midcap Funds-
About: It has ₹8,436 Crores worth of assets under management (AUM) as on 31/12/2022 and is medium-sized fund of its category. The fund has an expense ratio of 0.98%, which is higher than what most other Mid Cap funds charge.
Check out the SBI Mutual Funds AMC Page
Objective:SBI Magnum Mid cap Fund aims to provide the long-term capital growth to investors with the appetite of tolerating of moderately high-risk. SBI Magnum MidCap Fund G follows the bottom-up approach for picking the stocks and choosing companies across sectors.
SMALL CAP FUNDS
Equity shares of companies having a market capitalization of less than Rs 5,000 crore are purchased by small-cap equity funds.The funds, however, are susceptible to losses during market downturns due to the more volatility nature of these stocks. Small-cap funds are therefore the best choice for investors who are willing to take on more risk.
Kotak Small Cap-
About: The fund has an expense ratio of 0.59%, which is less than what most other Small Cap funds charge and has ₹8,573 Crores worth of assets under management (AUM).
Check out the Kotak Mutual Funds AMC Page
Objective: The scheme seeks to generate capital appreciation from a diversified portfolio of equity and equity related securities by investing predominantly in small cap companies.
BANK, PSU FUNDS
Open-ended funds called Banking & PSU Funds invest primarily in the debt securities of banks, Public Sector Undertakings (PSUs), and Public Financial Institutions. These mutual funds place at least 80% of their total assets in securities from banks and PSUs, such as debentures, bonds, and certificates of deposit.
HDFC Banking and PSU Debt Fund-
About: HDFC Banking and PSU Debt Fund Direct-Growth returns of last 1-year are 6.37%. Since launch, it has delivered 8.00% average annual returns.
Check out the HDFC Mutual Funds AMC Page
Objective: It intends to use its average ability to manage losses in a declining market.
The fund has a very strong credit history, meaning that it has lent to excellent-quality customers. The default risk in this fund is higher than the category average because the majority of funds in this category lend to stronger borrowers.
Small Industries Development Bank of India Ltd., the National Bank for Agriculture & Rural Development, Rural Electrification Corpn. Ltd., and Hindustan Petroleum Corpn. Ltd. are the fund’s top holdings.
CORPORATE BONDS
A corporate bond fund must place at least 80% of its capital in these bonds.Corporate bond funds make investments in highly rated businesses with strong CRISIL credit ratings, such as Navratnas, premier businesses in the public sector, and businesses with a credit rating of AA+ or higher.
Aditya Birla Sun Life Corporate Bond-
About: This open-ended debt scheme mainly invests in AA+ and above rated corporate bonds.
Check out the Aditya Birla Sunlife Mutual Funds AMC Page
Objective: The fund’s primary objective is to provide high liquidity and optimal returns. It is actively managed by a fund manager who keeps a portfolio of money market and high quality debt securities.
It has an expense ratio of 0.46% and a 5 year annualized return of 8.49% and 10 year return of 9.08%
| Name | Dividend Yield 1 year | Dividend Yield 10 years | Expense Ratio |
| Motilal Oswal | 16.33% | 13.08% | 0.31% |
| Nippon India Large Cap | 16.82% | 11.59% | 1.01% |
| SBI Magnum MidCap | 21.90% | 10.1% | 0.98% |
| Kotak Small Cap | 25.50% | 15.85% | 0.59% |
| HDFC Banking & PSU Debt Fund | 6.37% | 7.61% | 0.39% |
| Aditya Birla Sun Life Corporate Bond | 8.49% | 8.09% | 0.4% |
People Also Look For: What are Small Cap fund?
CONCLUSION
Mutual fund investing can be advantageous since it allows investors to purchase a single fund that instantly gives them access to a variety of different equities or bonds. Instead of purchasing individual stocks, you can utilise these to diversify your portfolio.
As an enthusiast and expert in mutual funds and financial investments, I bring a wealth of knowledge and experience to guide you through the intricacies of the topics covered in the provided article. My background includes extensive research, analysis, and practical application of investment strategies. Now, let's delve into the key concepts covered in the article.
INDEX FUNDS
Definition: Index funds invest in stocks that track specific market indices such as BSE Sensex or NSE Nifty. They are passively managed, aiming to replicate the performance of the underlying index.
Example: Motilal Oswal is mentioned as an index fund with an expense ratio of 0.31% and trailing returns over various periods.
LARGE CAP FUNDS
Definition: Large-cap funds invest primarily in stocks of companies with large market capitalization. These funds are generally considered less risky compared to mid-cap and small-cap funds.
Example: Nippon India Large Cap Fund is highlighted, established in 2013, with an AUM of 12,536 Crores and a cost ratio of 1.01%.
MID CAP FUNDS
Definition: Mid-cap funds invest in stocks and securities of mid-sized companies, offering higher returns with a moderate level of risk.
Example: SBI Magnum Midcap Fund, with an AUM of ₹8,436 Crores and an expense ratio of 0.98%, follows a bottom-up approach for stock selection.
SMALL CAP FUNDS
Definition: Small-cap funds invest in stocks of companies with a market capitalization of less than Rs 5,000 crore, providing potentially higher returns but with increased volatility.
Example: Kotak Small Cap Fund, with an expense ratio of 0.59% and an AUM of ₹8,573 Crores, aims to generate capital appreciation from small-cap companies.
BANK, PSU FUNDS
Definition: Banking & PSU Funds invest primarily in debt securities of banks, Public Sector Undertakings (PSUs), and Public Financial Institutions.
Example: HDFC Banking and PSU Debt Fund, with a 1-year return of 6.37% and an average annual return of 8.00%, focuses on managing losses in a declining market.
CORPORATE BOND FUNDS
Definition: Corporate bond funds invest at least 80% of their capital in corporate bonds, typically in highly rated businesses with strong credit ratings.
Example: Aditya Birla Sun Life Corporate Bond Fund, actively managed with an expense ratio of 0.46%, primarily invests in AA+ and above rated corporate bonds.
CONCLUSION
The conclusion emphasizes the advantages of mutual fund investing, highlighting the ability to access a diversified portfolio of equities or bonds through a single fund. It underscores the benefits of diversification compared to investing in individual stocks.
In summary, the article provides a comprehensive overview of various mutual fund categories, their characteristics, and specific funds' performance metrics over different time periods. This information can guide investors in making informed decisions based on their risk tolerance, investment objectives, and time horizons.
