In today’s era, it is not considered wise to keep your earnings only in savings account or traditional investments. To beat rising inflation and secure themselves financially, investors are increasingly turning to mutual funds. There is a general belief in the market that by investing with the right plan, an excellent average return of 12 to 14 percent can be achieved. However, this profit is not a fixed guarantee. The performance of mutual funds completely depends on the movements of the stock market. While returns can increase manifold during market boom, there is also risk during a downturn. Today we will tell about those selected funds of the market which have made investors rich in the last 5 years.
Which 5 funds did wonders?
If we look at the data of the last few years, the dominance of funds related to PSU (Public Sector Undertaking) and infrastructure themes is clearly visible.
| Fund Name | Returns in 5 years (%) | Expense Ratio (%) | NAV(₹) |
| SBI PSU Fund | 29.99 | 0.85 | 40.34 |
| Aditya Birla SL PSU Equity | 29.82 | 0.59 | 41.04 |
| ICICI Pru Infrastructure Fund | 28.33 | 1.18 | 217.57 |
| Invesco India PSU Equity | 28.05 | 0.91 | 81.69 |
| DSP India TIGER Fund | 27.04 | 0.89 | 373.06 |
Which companies are investing your money in?
When you invest money in a fund, that amount is further invested in many big companies of the stock market. The success of these funds is mainly due to the big government and infrastructure companies of the country.
- SBI PSU Fund: This fund has invested the largest portion of its total capital in State Bank of India (16.50%). After this, bets have been placed on big companies like Power Grid Corporation (10.02%), NTPC (9.72%) and Bharat Electronics (9.10%).
- Aditya Birla SL PSU Equity Fund: The strategy of this fund is also quite similar. This includes 18.77% stake in State Bank of India, 9.17% in NTPC, 6.85% in Power Grid and 5.37% in Bharat Electronics.
- ICICI Pru Infrastructure Fund: This fund focusing on infrastructure has invested 8.68% in InterGlobe Aviation Limited (IndiGo). Also, Larsen & Toubro (6.98%), Oberoi Realty (4.95%), NTPC (4.58%) and Shree Cement (3%) are important parts of its portfolio.
- Invesco India PSU Equity Fund: This fund has expressed confidence in public sector banks and defense companies. Its major holdings are in State Bank of India (8.60%), Indian Bank (7.33%), Hindustan Aeronautics (6.82%), Bharat Petroleum (6.48%) and NTPC (6.24%).
- DSP India TIGER Fund: This fund also focuses on companies related to infrastructure and economic development. This includes stocks like NTPC (5.26%), Apollo Hospitals (4.49%), Larsen and Toubro (4.41%), Multi Commodity Exchange (3.27%) and Bharti Airtel (3.04%).
Should you invest?
The biggest question that arises in the mind of an investor is whether one should invest money immediately after seeing these fantastic figures? The opinion of investment experts on this is very clear. Taking investment decisions based only on past returns in the market can be a dangerous step. Behind every high return lies a big risk. Before investing, you should properly assess your financial needs, goals and risk appetite. Apart from this, it is very important to keep a close eye on the expense ratio i.e. fund management fees. If a fund’s expense ratio is high (say, more than 1 percent), in the long run a large portion of your profits will go just to pay the fees. Therefore, before taking any investment decision, balance the expenses of the fund along with the returns and your personal financial situation.
Also read- M&M Finance Share: This company of Mahindra made huge profits, happily gave such a big gift to the investors.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
