Investing in mutual funds has become a popular choice for those looking to grow their wealth over the long term. Systematic Investment Plans (SIPs) in particular have made it easier for people to invest small amounts monthly and achieve high returns over time. By investing consistently and allowing the power of compounding to work, SIPs in top-performing mutual funds can help investors achieve significant financial growth. Here, we will discuss five mutual funds that have delivered exceptional returns over the last 10 years, multiplying investments up to 8 times.
Let’s explore these funds, their past performance, and the returns they’ve generated both through SIPs and lump-sum investments.
1. Nippon India Small Cap Fund
Nippon India Small Cap Fund has emerged as a top performer, providing investors with impressive returns over the last decade. Its focus on small-cap stocks has allowed it to benefit from high-growth companies in emerging sectors.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Investment Duration: 10 years
- Annualized Return: 26.73%
- Total Investment (SIP) Over 10 Years: Rs.13 lakh
- Value After 10 Years: Rs.60,22,554
Lump-Sum Investment Returns:
- Annualized Return: 23.94%
- Amount After 10 Years (Rs.1 lakh invested): Rs.8,56,923
- Absolute Return: 757%
Key Details:
- Minimum Lump-Sum Investment: Rs.5,000
- Minimum SIP: Rs.100
- Expense Ratio: 0.66%
Nippon India Small Cap Fund has consistently performed well, making it a top choice for investors seeking high returns in the small-cap category.
2. SBI Small Cap Fund
The SBI Small Cap Fund has achieved robust returns for both SIP and lump-sum investors over the last decade. Like other small-cap funds, it focuses on high-growth small companies that have the potential to deliver substantial returns over time.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Investment Duration: 10 years
- Annualized Return: 23.82%
- Total Investment (SIP) Over 10 Years: Rs.13 lakh
- Value After 10 Years: Rs.50,79,254
Lump-Sum Investment Returns:
- Annualized Return: 23.73%
- Amount After 10 Years (Rs.1 lakh invested): Rs.8,42,306
- Absolute Return: 742%
Key Details:
- Minimum Lump-Sum Investment: Rs.5,000
- Minimum SIP: Rs.500
- Expense Ratio: 1.66%
SBI Small Cap Fund has garnered a reputation as one of the top small-cap mutual funds, with a high potential for returns due to its focus on emerging companies.
3. Quant ELSS Tax Saver Fund
Quant ELSS Tax Saver Fund offers both tax benefits and high returns, making it an attractive option for investors looking to save on taxes while also generating wealth over time. This fund has performed exceptionally well in the last 10 years.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Investment Duration: 10 years
- Annualized Return: 25.50%
- Total Investment (SIP) Over 10 Years: Rs.13 lakh
- Value After 10 Years: Rs.56,04,882
Lump-Sum Investment Returns:
- Annualized Return: 23.45%
- Amount After 10 Years (Rs.1 lakh invested): Rs.8,23,809
- Absolute Return: 724%
Key Details:
- Minimum Lump-Sum Investment: Rs.500
- Minimum SIP: Rs.500
- Expense Ratio: 0.65%
The Quant ELSS Tax Saver Fund is ideal for those who want tax benefits under Section 80C along with potential high returns.
4. Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund focuses on mid-sized companies with substantial growth potential. Over the last decade, it has provided high returns, making it an excellent choice for investors who are looking to diversify beyond large-cap stocks.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Investment Duration: 10 years
- Annualized Return: 24.77%
- Total Investment (SIP) Over 10 Years: Rs.13 lakh
- Value After 10 Years: Rs.53,71,341
Lump-Sum Investment Returns:
- Annualized Return: 22.18%
- Amount After 10 Years (Rs.1 lakh invested): Rs.7,42,814
- Absolute Return: 643%
Key Details:
- Minimum Lump-Sum Investment: Rs.500
- Minimum SIP: Rs.500
- Expense Ratio: 0.58%
Motilal Oswal Midcap Fund is a good choice for those who want to tap into the potential of mid-cap stocks for long-term growth.
5. Kotak Small Cap Fund
The Kotak Small Cap Fund has consistently delivered high returns by investing in small-cap companies with growth potential. It’s ideal for those willing to take on higher risk for greater long-term gains.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Investment Duration: 10 years
- Annualized Return: 23.60%
- Total Investment (SIP) Over 10 Years: Rs.13 lakh
- Value After 10 Years: Rs.50,13,945
Lump-Sum Investment Returns:
- Annualized Return: 21.31%
- Amount After 10 Years (Rs.1 lakh invested): Rs.6,90,186
- Absolute Return: 590%
Key Details:
- Minimum Lump-Sum Investment: Rs.100
- Minimum SIP: Rs.100
- Expense Ratio: 0.48%
Kotak Small Cap Fund’s performance makes it a solid option for long-term investors who are willing to invest in small companies for high returns.
Choosing the Right Mutual Fund for High Returns
When selecting a mutual fund, it’s essential to consider factors such as past performance, expense ratio, and the fund’s risk level. While these top-performing funds have delivered excellent returns over the last decade, keep in mind that mutual fund investments are subject to market risks. Always evaluate your financial goals, risk tolerance, and investment horizon before committing to a mutual fund.
Long-term investments through SIPs allow investors to benefit from rupee cost averaging and the power of compounding, helping to mitigate market volatility and maximize returns. For those looking to build wealth over the long term, mutual funds like those listed above can be an effective tool.
Disclaimer: This information is for educational purposes and should not be considered financial advice. Always consult a financial advisor before making any investment decisions.
