Kolkata: Ten years is a long time in any forms of investment. It is the longest tenure for which any bank offers fixed deposits. In mutual funds too 10 years is considered long term. The last 10 years has been especially important for the mutual fund industry for this is the time when the sector matured a lot both in terms of types of funds and investors.
Incidentally Sensex was in the range of 25,000 in August 2015. Therefore, it becomes clear the sort of rise that the markets had in the past 10 years. Investors have reaped commensurate benefits. Those who have remained invested during the entire term have reaped big rewards. Let’s have a look at how small cap, mid cap and large cap mutual funds have generated returns in the past 10 years.
According to data compiled by Value Research, small-cap funds have generated the highest rate of returns. The returns by mid-cap funds was a bit less but large-cap funds provided a lower rate of return compared to both the small and mid cap funds. However, large cap funds always offer peace of mind for the investor since they are less volatile.
Small-cap funds: This category of mutual fund schemes has generated an average return of 17.35% in the last 10 years. A SIP calculator will tell you that at this rate of return if one had invested Rs 10,000 every month, it would have returned Rs 32,26,811 in 10 years.
Mid-cap funds: Mid cap fund generate an average annual return of 16.27% during the tenure. At this rate of return, the SIP of Rs 10,000 will become Rs 30,15,083 in 10 years.
Large-cap funds: The average rate of annual return is 12.79% in the past 10 years. If one invested Rs 10,000 every month for 10 years, this rate of return would have ensured a final value of Rs 24,35,830.
However, one has to remember that the returns stated above is just the overall returns in this sector. If one scans the returns generated by the best performing funds, the rates are far higher.
Best small-cap performers
Nippon India Small Cap Fund (22.67%)
Axis Small Cap Fund (20.43%)
Quant Small Cap Fund (20.34%)
SBI Small Cap Fund (20.33%)
HDFC Small Cap Fund (20.17%)
The highest rate of return will tell you that if one invested Rs 10,000 every month for 10 years in Nippon India Small Cap Fund, the value of the SIP would have become Rs 45,56,543.
Best mid-cap performers
Invesco India Mid Cap Fund (20.33%)
Kotak Midcap Fund (19.82%)
Edelweiss Mid Cap Fund (19.60%)
Motilal Oswal Midcap Fund (19.29%)
Nippon India Growth Mid Cap Fund (18.98%)
The highest rate of return in this category will tell you that if one invested Rs 10,000 every month for 10 years in Invesco India Mid Cap Fund, the value of the SIP would have become Rs 39,06,504.
Best large-cap performers
Quant Focused Fund (16.03%)
Nippon India Large Cap Fund (15.68%)
ICICI Prudential Large Cap Fund (15.60%)
Canara Robeco Large Cap Fund (15.52%)
Invesco India Largecap Fund (14.90%)
The highest rate of return in this category will tell you that if one invested Rs 10,000 every month for 10 years in Quant Focused Fund, the value of the SIP would have become Rs 29,70,263.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)