With the growing popularity of mutual funds in India, many investors are looking for the best funds that provide consistent returns. Among them, some equity mutual funds have outperformed the market, both in Systematic Investment Plans (SIPs) and lump sum investments. These funds have attracted large investments, as their assets under management (AUM) continue to grow. Let’s take a look at the top 5 mutual funds that have delivered excellent returns over the years.
1. Parag Parikh Flexi Cap Fund
AUM: Rs. 82,441 crore
Parag Parikh Flexi Cap Fund is one of the largest mutual funds in India. Known for its consistent performance, the fund has shown exceptional returns in both SIP and lump sum investments. Over the last 10 years, it has delivered a 21% annualized return on SIPs and an impressive 464% absolute return for lump sum investments over the same period.
For those investing in SIPs, the 5-year returns stand at 26.32% annualized, while the 3-year returns are at 26.67%. On the lump sum side, 5-year returns are around 26.16% and 3-year returns at 16.09%. This makes Parag Parikh Flexi Cap a top choice for investors looking for long-term wealth creation.
2. HDFC Mid-Cap Opportunities Fund
AUM: Rs. 77,682.9 crore
HDFC Mid-Cap Opportunities Fund has consistently been a strong performer, especially in the mid-cap segment. Its 10-year SIP return is an astounding 22.65% annualized, translating into 231.4% absolute returns. The lump sum returns over 10 years are equally impressive at 19.83% annualized, or 511.49% absolute.
For medium-term investors, the 5-year returns on SIPs are 34.77%, and lump sum investments yield 30.90%. Even in the short term (3 years), this fund has delivered solid results with SIP returns of 37.57% and lump sum returns of 26.01%. This fund is a good option for those who want exposure to the mid-cap market.
3. HDFC Flexi Cap Fund
AUM: Rs. 66,225.06 crore
Another strong performer from HDFC is the Flexi Cap Fund. With an annualized SIP return of 20% over 10 years, this fund has proven its ability to provide steady returns. The lump sum investment over the same period offers 337.80% absolute returns or 15.89% annualized.
For 5-year SIPs, investors have earned 30.28% annualized returns, while lump sum investments over the same period have yielded 25%. Short-term (3-year) returns are also strong, with SIPs at 31.55% and lump sum investments at 22.94%.
4. ICICI Prudential Bluechip Fund
AUM: Rs. 66,206.57 crore
ICICI Pru Bluechip Fund, with its focus on large-cap stocks, has been a favorite among conservative investors looking for stability and returns. The 10-year SIP return stands at 17.73% annualized, and lump sum investments have grown by 311.20% in absolute terms over the same period.
For 5-year SIPs, the fund has offered 24.58% annualized returns, and lump sum investors have gained 159.78% over 5 years. The 3-year returns are also notable, with SIP returns of 26.14% and lump sum returns of 17.47%. This fund is ideal for those who prefer low-risk investments with decent growth.
5. Nippon India Small Cap Fund
AUM: Rs. 62,259.56 crore
Nippon India Small Cap Fund is known for its high returns, especially for those willing to take on more risk. This fund has delivered exceptional results, with a 27% annualized return for SIPs over 10 years and an impressive 731.83% absolute return for lump sum investments over the same period.
In the medium term, SIP returns over 5 years have been 40.95%, and lump sum investors have gained 403.22%. For the short term, 3-year SIP returns stand at 39.68%, and lump sum investments have yielded 28.65%. This fund is perfect for investors looking for aggressive growth and higher risk tolerance.
Why AUM Matters in Mutual Funds
The AUM of a mutual fund reflects its size and popularity among investors. A higher AUM generally indicates that the fund is attracting significant investment, which often points to good management and a strong track record. However, high AUM doesn’t always guarantee the best returns, so it’s important to also look at performance data over multiple periods, such as 3, 5, and 10 years.
Important Considerations for Investors
While the funds mentioned above have performed exceptionally well, it’s crucial to understand that past performance is not a guarantee of future results. The stock market is subject to fluctuations, and returns can vary over time. Therefore, investors should seek professional advice and thoroughly research their options before committing to a mutual fund, whether through SIP or lump sum investments.
