Nine Equity Mutual Funds Quadruple Lumpsum Investments in Five Years
Nine equity mutual funds have shown amazing performance over the last five years, multiplying investors’ lump sum investments by more than four times. Out of 193 equity mutual funds active during this time, nine funds from the small-cap and mid-cap categories have delivered outstanding growth.
Among the top performers, seven small-cap funds and two mid-cap funds managed to turn a Rs.1 lakh investment into over Rs.4 lakh. The best performer was a small-cap fund that multiplied investments by 4.90 times, thereby giving huge returns during the five-year period.
The largest small-cap fund under management demonstrated substantial growth by multiplying the returns to 4.67 times the input Rs.1 lakh. Similarly, other small-cap funds showed impressive results with one multiplying 4.35 times, and another one returned at 4.19 times.
A mid-cap fund was also extremely robust in performance, growing a Rs.1 lakh lump sum investment to Rs.4.15 lakh over the same period. The fund had a CAGR of 32.93%.
Another small-cap fund took an investment of Rs.1 lakh and converted it into Rs.4.06 lakh, which gave a CAGR of 32.31%.
Two other funds, one mid-cap and one small-cap, grew investments by 4.03 times each. This means an investment of Rs.1 lakh in these funds would now be worth about Rs.4.03 lakh.
The study looked at all types of equity mutual funds, including regular and growth plans. It used data from the past five years to find funds that gave great returns.
It’s noted that this is not advice for investors to invest. Investors should decide based on their ability to take risks, their financial goals, and how long they want to stay invested. Even though these funds did well in the past, mutual fund investments carry risks, and past performance doesn’t promise future results.
This report shows how equity mutual funds can grow money but also reminds investors to plan carefully before investing.
