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 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.
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.
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., Larsen & Toubro 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.
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).
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.
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.
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.
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|
|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%|
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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.