We are sharing the top 5 mutual funds that have made investors smile.
The best part?
These high-performing funds have a proven track record of doubling SIP investments in just half a decade.
While the mutual fund landscape is vast and varied, finding those that provide remarkable returns is hard. Therefore, in this article, we're going to deep dive into each fund, and what worked for each one of them.
Although the past isn't a reliable indicator of future success, it's important to learn from the past to plan for a better future.
If you're looking to understand mutual funds better and build a list of funds that have a proven track record of delivering growth with stability, then you're at the right place.
Eager to learn more? Let’s get started.
Why Invest In Mutual Funds?
Investing in mutual funds has several benefits compared to other investment avenues. However, like any investment, they also have potential downsides, so it's essential to evaluate your risk tolerance, investment goals, and individual preferences.
Here are some benefits of investing in mutual funds:
- Diversification
Mutual funds buy a diversified portfolio of stocks, bonds or other securities. This helps reduce risk against poor performance of a single security.
- Professional Management
Mutual funds are managed by professionals who have the expertise and resources to research & analyze markets. This is great for investors who may not have the time or knowledge to manage their investments.
- Liquidity
Mutual funds can generally be bought or sold (redeemed) on any business day at the current market value, known as the Net Asset Value (NAV). This provides investors with easy access to their money.
- Affordability
Many mutual funds have low minimum investment requirements, making them accessible to a broader range of investors. This is especially true compared to direct investments in assets like real estate.
- Variety
Different mutual funds cater to different investment goals, risk tolerances, and time horizons. Whether you want to invest in stocks, bonds, real estate, or international securities, there's likely a mutual fund designed to fit your needs.
- Systematic Investment
Mutual funds often offer plans that allow investors to invest fixed sums at regular intervals, like monthly. This is beneficial for those who want to invest small amounts regularly, leveraging the power of dollar-cost averaging.
- Dividend Reinvestment
Many mutual funds offer the option to reinvest dividends automatically, enabling investors to purchase additional shares and benefit from the power of compounding.
- Transparency
Mutual funds are subject to regulatory oversight, ensuring transparency in operations, disclosures, and reporting.
- Economies of Scale
Because mutual funds manage large pools of money, they can achieve economies of scale. This means lower transaction costs per dollar invested compared to an individual making direct investments.
- Ease of Comparison
It's relatively easy to compare the performance, fees, and objectives of different mutual funds, which can aid in the decision-making process.
That being said, some mutual funds in India have been drawing results consistently for the last 5 years. It's time for the big reveal.
These 5 Mutual Funds Doubled SIP Investments In 5 Years
- Axis Bluechip Fund
- PGIM India Mid-Cap Opportunities Fund
- Axis Mid-Cap Fund
- Nippon India Small Cap Fund
- Quant Mid Cap Fund
Let's take a closer look at each one of them.
1. Axis Bluechip Fund
This fund has been getting a lot of attention lately and for good reasons.
Over the past couple of years, mutual funds have been a hot topic, and Axis Bluechip Fund has surfaced as one of the favorites in India.
Picture this: If you had tucked away a neat ₹100 into this fund just five years ago, today you'd be gazing proudly at ₹153.86.
Not too shabby for a half-decade, right? And that's thanks to an impressive 5-year annualized return of 9.60% (as of August 25, 2023).
The secret sauce?
The fund managers focused only on blue-chip stocks.
If you're scratching your head wondering what those are, think of them as the stalwarts – big, reliable companies that have been around the block and have a shining track record of profitability. They don't come with the wild mood swings that some stocks are infamous for. In other words, they're like the steady, dependable friends we all value in our lives.
The cherry on the top is the Axis Bluechip Fund's low expense ratio of 1.56%. To decode that for you: only a minuscule part of your investment is nibbled away by fees. So, more money stays cozily in your pocket, growing steadily.
Here's a closer look for those who love the details of Growth Regular options:
(i) Current NAV
- As of Aug 25, 2023, the Growth option of its Regular plan sits at a cool ₹45.48.
(ii) Returns
- 1 year: 3.65%
- 3 years: 13.24%
- 5 years: 9.60%
- Since launch: 11.74%
(iii) Fund Size
- As of July 31, 2023, they're managing assets worth a whopping ₹33,891.89 crore.
(iv) Expense ratio -
- Remember that part where I mentioned the low expense ratio? There's a tiny update - it's 1.56% for the Regular plan as of June 30, 2023.
(v) Exit Load
- If you're thinking of pulling out soon, there's a catch. If you redeem more than 10% of your investment within the first 12 months, there's a 1% charge.
Disclaimer: It is important to note that past performance is not a guarantee of future results. When investing in mutual funds, it is important to do your own research and understand the risks involved.
2. PGIM India Mid-Cap Opportunities Fund
Let's journey back to 2010 when PGIM India Mid-Cap Opportunities Fund first graced the investment scene. Fast forward to today, and this fund has been making waves.
If you had the foresight (or luck!) to invest ₹100 in this fund five years ago, you'd now be sitting on a neat ₹296.26. The reason? A staggering 5-year annualized return of 19.21% (as of August 25, 2023).
But what's driving these numbers? The magic lies in the fund's focus on mid-cap stocks.
Picture companies that aren't the big shots of the market but aren't exactly fledglings either. They're nestled right in between, offering a blend of stability and potential growth. Sure, they aren't as established as their large-cap cousins, but their appetite for growth can be insatiable.
A word to the wise though: the PGIM India Mid-Cap Opportunities Fund isn't for the faint-hearted. It carries a high-risk profile, meaning its NAV can dance wildly. But here's the silver lining: It's been consistently outshining its benchmark index in the long run.
Considering this fund for your portfolio?
If your gaze is set on long-term financial growth, this might be a good choice. It's been a reliable performer, bringing both consistency and that tantalizing potential for explosive growth.
Here's a closer look for those who love the details of Growth Regular options:
(i) Current NAV
- As of Aug 25, 2023, the Growth option of its Regular plan is priced at ₹47.56.
(ii) Returns
- 1 year: 7.17%
- 3 years: 29.17%
- 5 years: 19.21%
- Since its debut: 17.37%
(iii) Fund Size
- As of July 31, 2023, this fund is responsible for a whopping ₹9,261.06 crore.
(iv) Expense ratio
- They operate with an expense ratio of 1.72% for the Regular plan as of July 31, 2023.
(v) Exit Load
- Here's the catch, planning an early exit? There's a 0.5% fee if you redeem within the first 90 days.
Disclaimer: It is important to note that past performance is not a guarantee of future results. When investing in mutual funds, it is important to do your own research and understand the risks involved.
3. Axis Mid-Cap Fund
Way back in 2009, the Axis Mid-Cap Fund took its first steps into the investment landscape. Since then, it's been quite the journey.
If you had been adventurous enough to invest ₹100 in this fund five years ago, today, you'd be sipping coffee and looking at an impressive ₹201.13 in your account. That's thanks to an alluring 5-year annualized return of 15.45% (as of August 25, 2023).
You might wonder, what's the secret? The fund managers here have a clear affection for mid-cap stocks.
Imagine companies that are like the middle siblings in a family - not as attention-grabbing as their bigger counterparts, but with an undeniable spark and growth potential. They've got the space and ambition to climb higher and faster.
And in terms of risk? Well, the Axis Mid-Cap Fund walks the middle ground. While its NAV has its days of dancing to the market's tunes, it doesn't go full-on wild as some small-cap funds might. And the best part? Over the years, this fund has had a knack for beating its benchmark index time and again.
Here's a closer look for those who love the details of Growth Regular options:
(i) Current NAV
- Mark your calendars, folks. As of Aug 25, 2023, the Growth option of its Regular plan is clocking in at ₹76.99.
(ii) Returns
- 1 year: 12.56%
- 3 years: 22.10%
- 5 years: 15.45%
- Since its debut: 17.70%
(iii) Fund Size
- This is no small operation. As of July 31, 2023, they're managing a cool ₹22,177.63 crore.
(iv) Expense ratio
- As of June 30, 2023, it sits at 1.62% for the Regular plan.
(v) Exit Load
- A quick heads up: pulling out more than 10% of your investment within the first year? That'll cost you a 1% fee.
Disclaimer: It is important to note that past performance is not a guarantee of future results. When investing in mutual funds, it is important to do your own research and understand the risks involved.
4. Nippon India Small Cap Fund
Nippon India Small Cap Fund, with roots dating back to 2006, is no stranger to this landscape. Picture this: If you'd mustered up the courage to drop ₹100 into this fund five years ago, today, you'd be gazing at an eye-catching ₹447.70. A neat 5-year annualized return of 21.86% (as of August 25, 2023) is responsible for that growth.
What's the magic behind these numbers?
Small-cap stocks. The underdogs of the stock market, these are the companies with a market cap shy of ₹10,000 crore. They're like those indie bands - newer, less recognized than the stadium-filling legends, but with music (or in this case, growth) that can sometimes leave you awestruck.
Of course, with the highs come the lows too.
Nippon India Small Cap Fund is not for the faint-hearted. Its NAV sees more ups and downs than most other funds, but hey, it's been a rewarding journey. Over the long run, this fund's performance has stood tall, even outdoing its benchmark index.
Here's a closer look for those who love the details of Growth Regular options:
(i) Current NAV
- As of Aug 25, 2023, for those opting for the Growth variant of its Regular plan, the number is ₹118.07.
(ii) Returns
- 1 year: 34.10%
- 3 years: 40.89%
- 5 years: 21.86%
- Since its inception: 21.01%
(iii) Fund Size
- Managing a whopping ₹34468.92 crore as of July 31, 2023, it's clear that this fund has garnered a significant following.
(iv) Expense Ratio
- For the Regular plan, as of July 31, 2023, the rate sits at 1.58%.
(v) Exit Load Details
- If you're thinking of making an exit within a month, bear in mind there's a 1% charge.
Disclaimer: It is important to note that past performance is not a guarantee of future results. When investing in mutual funds, it is important to do your own research and understand the risks involved.
5. Quant Mid Cap Fund
In the bustling landscape of mid-cap equity funds, the Quant Mid Cap Fund has carved out a niche since 2013.
Hold onto your hats for this one: it boasts a 5-year annualized return of 21.07% as of August 26, 2023.
So, if you took a leap of faith and invested Rs. 100 into this fund back 5 years, today you'd be sitting on a sumptuous ₹423.38.
But, what’s the secret sauce? It's all about the numbers. The Quant Mid Cap Fund embraces a quantitative investment strategy, using mathematical models as its compass to cherry-pick stocks. This scientific approach has been a boon, allowing the fund to consistently outstrip its benchmark index.
Now, diving into the world of mid-cap funds is not without its bumps and jolts. The fund does see its fair share of NAV fluctuations. Yet, it's not as unpredictable as its small-cap cousins, making it a relatively smoother ride for investors.
Here's a closer look for those who love the details of Growth Regular options:
(i) Current NAV
- As of Aug 25, 2023, those inclined towards the Growth variant of its Regular plan can eye a NAV of ₹155.17.
(ii) Returns
- 1 year: 22.30%
- 3 years: 34.76%
- 5 years: 21.07%
- Since its inaugural: 12.99%
(iii) Fund Size
- With a pool of ₹2,531.32 crore as of July 31, 2023, it’s evident that this fund has its share of aficionados.
(iv) Expense Ratio
- For those of you running numbers, as of July 31, 2023, the rate for the Regular plan is 2.38%.
(v) Exit Load
- If you’re considering an early exit within 3 months, be ready for a 0.50% charge.
Disclaimer: It is important to note that past performance is not a guarantee of future results. When investing in mutual funds, it is important to do your own research and understand the risks involved.
Key Takeaways
By this time, you must have understood a few things about mutual funds such as:
- These are handled by professionals, increasing the chance of their success.
- The risks involved are relatively low, and the returns are decent and predictable.
- You don't have to work rigorously before making investments like stocks.
However, you must also understand that mutual funds won't guarantee you huge profits like stocks. They can provide you with consistent returns, but that just might not be enough.
You must be curious to understand more things, such as:
- How much amount is needed to be invested in mutual funds?
- What should be the proportion of investments into mutual funds when compared with other investment tools?
- How to analyze the future of a particular mutual fund?
For answers to the above queries, keep a watch on our future articles on our blog page and check out the INDmoney app.
We will keep talking about mutual funds and other modes of investments from time to time, giving you a clearer picture of how to look at your investments.
Thank you for reading this article. Feel free to share it with people around you who are also interested in mutual funds!