Investing in mutual funds has become an attractive option for people looking for high returns without directly entering the stock market. In the past year, some equity mutual funds have given returns as high as 65-85%, making them competitive with stock market investments. These funds have not only performed well in the short term but have also shown consistent long-term results, especially through systematic investment plans (SIP). Here’s a look at the top 10 mutual funds that have given over 65% returns in one year and have strong SIP performance over five years.
Top Performing Mutual Funds with Over 65% Returns
- CPSE ETF
- 1 Year Return: 85.71%
- 5 Year SIP Return: 48.65% per annum
- SIP Value (Rs. 10,000/month): Rs. 19,24,588
- Motilal Oswal Midcap Fund
- 1 Year Return: 72.56%
- 5 Year SIP Return: 42.86% per annum
- SIP Value (Rs. 10,000/month): Rs. 16,89,128
- LIC MF Infrastructure Fund
- 1 Year Return: 68.39%
- 5 Year SIP Return: 39.01% per annum
- SIP Value (Rs. 10,000/month): Rs. 15,46,959
- Bandhan Infrastructure Fund
- 1 Year Return: 66.42%
- 5 Year SIP Return: 41.57% per annum
- SIP Value (Rs. 10,000/month): Rs. 16,40,280
- Nippon India Nifty Next 50 Junior BeES FoF
- 1 Year Return: 66.35%
- 5 Year SIP Return: 28% per annum
- SIP Value (Rs. 10,000/month): Rs. 11,94,003
- ICICI Prudential Nifty Next 50 ETF
- 1 Year Return: 66.11%
- 5 Year SIP Return: 28.21% per annum
- SIP Value (Rs. 10,000/month): Rs. 12,01,786
- UTI Nifty Next 50 ETF
- 1 Year Return: 66.09%
- 5 Year SIP Return: 28.22% per annum
- SIP Value (Rs. 10,000/month): Rs. 12,01,860
- SBI Nifty Next 50 ETF
- 1 Year Return: 66.06%
- 5 Year SIP Return: 28.13% per annum
- SIP Value (Rs. 10,000/month): Rs. 11,99,536
- Nippon India ETF Nifty Next 50 Junior BeES
- 1 Year Return: 66%
- 5 Year SIP Return: 28.08% per annum
- SIP Value (Rs. 10,000/month): Rs. 11,98,042
- DSP Nifty Next 50 Index Fund
- 1 Year Return: 65.68%
- 5 Year SIP Return: 27.93% per annum
- SIP Value (Rs. 10,000/month): Rs. 11,93,855
Why Mutual Funds Are a Safer Bet
For investors hesitant to jump into the stock market, mutual funds offer a safer alternative. Mutual funds pool money from various investors and invest in a diversified portfolio of stocks, reducing the risk associated with individual stocks. Fund managers, who are experts in the field, carefully select the stocks to include in the portfolio, focusing on growth potential and profitability.
Mutual funds also come in different categories such as large-cap, mid-cap, and small-cap, providing flexibility depending on the risk appetite of the investor. The diversification of stocks from various sectors further helps in spreading the risk and enhancing the chances of good returns.
How Fund Managers Maximize Returns
The success of mutual funds largely depends on the expertise of fund managers. They analyze market trends, company performance, and other economic factors to choose the right stocks for the portfolio. Their research and focus on companies with strong growth prospects lead to better returns for the investors.
While past returns are not a guarantee of future performance, these fund managers use their knowledge and experience to navigate market risks, making mutual funds a more stable investment option compared to directly buying stocks.
Investing Through SIPs for Long-Term Gains
Systematic Investment Plans (SIPs) offer an excellent way to invest in mutual funds, especially for those who prefer disciplined and long-term investment. The SIP method allows investors to invest a fixed amount monthly, benefiting from both market highs and lows through rupee cost averaging.
The funds listed above have not only performed well in the last year but have also shown strong 5-year SIP returns, making them attractive options for those looking to grow their wealth over time.
Note: Past performance does not guarantee future returns. The market carries risks, so consult a financial advisor before making investment decisions.
