Which type of mutual fund gives highest return?
Index funds offer market returns at lower costs, while active mutual funds aim for higher returns through skilled management that often comes at a higher price. Investors should consider costs, time horizons, and risk appetite when deciding between index or managed mutual fund investing.
| Ticker | Name | 5-year return (%) |
|---|---|---|
| PBFDX | Payson Total Return | 16.30% |
| SSAQX | State Street US Core Equity Fund | 16.20% |
| CORRX | Columbia Contrarian Core Adv | 15.89% |
| FGRTX | Fidelity Mega Cap Stock | 15.73% |
The mutual fund category most often providing the highest return is small-cap funds. Read on to know the current risks associated. A small-cap mutual fund is by default, most often, the category with the highest returns, especially this year with a massive 51.8 per cent return.
Equity mutual funds are the best option for long term investment.
- Mutual funds. ...
- Senior citizen Savings Scheme. ...
- Public Provident Fund. ...
- National Pension Scheme (NPS) ...
- Real estate. ...
- Gold Bonds. ...
- REITS. ...
- Government bond.
| S.No. | Mutual Fund House |
|---|---|
| 1. | SBI Mutual Fund |
| 2. | ICICI Prudential Mutual Fund |
| 3. | HDFC Mutual Fund |
| 4. | Aditya Birla Sun Life Mutual Fund |
| Top small cap mutual funds | Annual Returns 2023 |
|---|---|
| Mahindra Manulife Small Cap Fund | 53.22% |
| Bandhan Small Cap Fund | 49.48% |
| Franklin India Smaller Companies Fund | 49.44% |
| ITI Small Cap Fund | 48.54% |
Index funds offer market returns at lower costs, while active mutual funds aim for higher returns through skilled management that often comes at a higher price. Investors should consider costs, time horizons, and risk appetite when deciding between index or managed mutual fund investing.
Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds. Each type has different features, risks, and rewards.
Money market mutual funds
These mutual funds own safe securities such as cash and very short-term debt, making them generally safer than either stock- or bond-based mutual funds but also lower-return.
Which mutual fund has the highest return over 20 years?
Compared with flexi-cap, funds in large-cap category such as Franklin India Bluechip and HDFC Top 100 Fund have given the return of 21 times and 29 times over the period of 20 years. Investing in mutual funds is usually considered a wealth-building strategy.
| Fund Name | 1 Year Returns | Fund Size (in Cr) |
|---|---|---|
| Edelweiss Arbitrage Fund | 7.9% | ₹6,984 |
| Bank of India Overnight Fund | 6.6% | ₹93 |
| Mirae Asset Overnight Fund | 6.6% | ₹1,253 |
| Axis Overnight Fund | 6.6% | ₹7,148 |
The wisest investment can vary greatly depending on your financial goals, risk tolerance, and individual circ*mstances. Some common wise investment options include: 1. **Diversified Portfolio**: Investing in a well-diversified portfolio of stocks, bonds, and other assets can help spread risk.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
- Fixed Deposits (FD)
- Public Provident Fund (PPF)
- ABSLI Fixed Maturity Plan.
- Unit Linked Insurance Plan (ULIP)
- Post Office Monthly Income Scheme (POMIS)
- Senior Citizen Savings Scheme (SCSS)
- Sukanya Samriddhi Yojana Scheme (SSY)
- National Pension System (NPS)
Morningstar Direct ranked the funds in terms of their 10-year annualized returns, as measured on a specific date (as opposed to the end of the month) — in this case, Oct. 19, 2023. No. 1 on the list is the ProFunds Semiconductor UltraSector Fund, which yielded 29.21% over the past decade.
- HDFC Mid-Cap Opportunities Fund.
- Parag Parikh Flexi Cap Fund.
- ICICI Pru Bluechip Fund.
- HDFC Flexi Cap Fund.
- Nippon India Small Cap Fund.
- HDFC Balanced Advantage Fund.
- ICICI Prudential Equity & Debt Fund.
- ICICI Prudential Corporate Bond Fund.
| Fund Name | 5 Years Return | 10 Years Return |
|---|---|---|
| Nippon India Growth Fund (G) | 26.7% | 21.6% |
| Kotak Infrastructure & Economic Reform Fund Standard Plan (G) | 25.5% | 21.3% |
| Invesco India PSU Equity Fund (G) | 29.7% | 21.3% |
| DSP India T I G E R Fund (G) | 26.8% | 21.0% |
| Scheme Name | Plan | Nov'23 |
|---|---|---|
| HDFC Top 100 Fund - Direct Plan - Growth | Direct Plan | 7.30% |
| JM Large Cap Fund - (Direct) - Growth | Direct Plan | 7.15% |
| Bandhan Large Cap Fund - Direct Plan - Growth | Direct Plan | 7.33% |
| SBI Blue Chip Fund - Direct Plan - Growth | Direct Plan | 5.57% |
| Fund Name | Category | Risk |
|---|---|---|
| Motilal Oswal Midcap Fund | Equity | Very High |
| Quant ELSS Tax Saver Fund | Equity | Very High |
| Quant Tax Plan Fund | Equity | Very High |
| Kotak Infrastructure and Economic Reform Fund | Equity | Very High |
What if I invest $1,000 in mutual funds for 10 years?
(You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.
| Mutual funds | 1-year return (%) |
|---|---|
| JM Value Fund | 47.66 |
| Nippon India Value Fund | 42.38 |
| Aditya Birla Sun Life Pure Value Fund | 43.02 |
| Axis Value Fund | 40.16 |
A common misconception is that rich people pick stocks themselves, when in fact, wealthy investors are often putting their cash in index funds, ETFs, and mutual funds, Tu told MarketWatch Picks.
Of course, you might also consider ETFs vs. mutual funds. Both are investment funds offering built-in diversification. However, unlike mutual funds, ETFs trade like stocks during regular market hours and may subject you to fewer taxes.
- Appreciation in the fund's NAV, which happens if the fund's investments increase in price while you own the fund.
- Income earned from dividends on stocks or interest on bonds.
- Capital gains or profits incurred when the fund sells investments that have increased in price.
