Investing in mutual funds has long been a strategic avenue for individuals aiming to achieve substantial financial growth. Over the past decade, certain mutual funds have consistently outperformed their peers, delivering remarkable returns to investors. This article delves into the highest-return mutual funds worldwide over the last ten years, providing a comprehensive analysis to guide potential investors.
Understanding Mutual Funds
A mutual fund pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional fund managers, these funds aim to generate returns that align with specific investment objectives, such as capital appreciation, income generation, or preservation of capital.
Top Performing Mutual Funds Globally in the Last Decade
Identifying the highest-return mutual funds requires analyzing their Compound Annual Growth Rate (CAGR) over a ten-year period. Below is a curated list of top-performing mutual funds from various categories:
1. Nippon India Small Cap Fund
- 10-Year CAGR: 21.88%
- Assets Under Management (AUM): ₹61,974 crore
- Expense Ratio: 0.68%
This fund focuses on small-cap companies with high growth potential, employing a bottom-up approach to stock selection. Its diversified portfolio spans sectors like chemicals, banking, and engineering.
2. SBI Small Cap Fund
- 10-Year CAGR: 21.06%
- AUM: Data not specified
- Expense Ratio: Data not specified
Specializing in small-cap investments, this fund has demonstrated robust performance by identifying companies with strong growth trajectories. Its strategic allocation has resulted in substantial returns for investors.
3. Quant ELSS Tax Saver Fund
- 10-Year CAGR: 20.87%
- AUM: ₹10,513 crore
- Expense Ratio: 0.59%
This Equity-Linked Savings Scheme (ELSS) offers tax benefits under Section 80C of the Income Tax Act. It invests in a mix of large and mid-cap stocks, focusing on companies with strong financials and growth prospects.
4. Quant Small Cap Fund
- 10-Year CAGR: 20.38%
- AUM: ₹26,670 crore
- Expense Ratio: 0.65%
Emphasizing small-cap stocks, this fund utilizes quantitative models and macroeconomic analysis to determine asset allocation. Its proactive approach has enabled it to adapt to market changes effectively.
5. Motilal Oswal Mid Cap Fund
- 10-Year CAGR: 20.19%
- AUM: ₹26,421 crore
- Expense Ratio: 0.65%
Targeting mid-cap companies, this fund follows a "buy right, sit tight" philosophy, investing in high-quality businesses with competitive advantages. Its portfolio includes sectors like IT, chemicals, and healthcare.
6. HSBC Small Cap Fund
- 10-Year CAGR: 20.10%
- AUM: Data not specified
- Expense Ratio: Data not specified
This fund focuses on small-cap companies with robust growth potential, employing a research-driven approach to identify undervalued stocks. Its diversified portfolio has yielded impressive returns.
7. Axis Small Cap Fund
- 10-Year CAGR: 18.96%
- AUM: Data not specified
- Expense Ratio: Data not specified
Investing primarily in small-cap stocks, this fund emphasizes quality companies with sustainable business models. Its disciplined investment process has resulted in consistent performance.
8. Kotak Emerging Equity Fund
- 10-Year CAGR: 18.73%
- AUM: ₹53,079 crore
- Expense Ratio: 0.38%
Specializing in mid-cap companies, this fund employs rigorous stock screening based on financial health and growth prospects. It maintains a diversified portfolio across various industries.
9. Kotak Small Cap Fund
- 10-Year CAGR: 18.71%
- AUM: Data not specified
- Expense Ratio: Data not specified
Focusing on small-cap investments, this fund identifies companies with strong fundamentals and scalable business models, aiming for long-term capital appreciation.
10. Edelweiss Mid Cap Fund
- 10-Year CAGR: 18.71%
- AUM: ₹8,666 crore
- Expense Ratio: 0.38%
This fund targets mid-cap stocks
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