Top 7 Mutual Funds Offering up to 35% Return in the Last Six Months
Mutual funds have become one of the most sought-after investment avenues for those looking to build wealth or expand their portfolio. There are a number of advantages associated with mutual funds, such as tax benefits, easy liquidation, and, above all, affordable, professional, and transparent. Mutual funds are doing relatively well as compared to market trends in the bearish phase. This goes to prove that some equity mutual funds can give stellar returns, as over 30% return has been given by some in just six months recently. A list of seven such funds that have fared exceptionally well is enlisted herein.
High-Return Mutual Funds
1. Bandhan Small Cap Fund
Bandhan Small-Cap Fund has generated a 35.13% return in the last six months. It is an open-ended equity scheme that predominantly invests in small-cap stocks. The fund was launched in February 2020 and has since generated 39.93% CAGR, thus emerging as one of the finest funds in its category.
2. Motilal Oswal Midcap Fund
This scheme is an open-ended equity scheme that normally invests predominantly in mid-cap stocks. The six-month return for the same amounts to 34.45%. The asset under management as of July stands at Rs.14,445.6 crores, and this fund benchmarks against the Nifty Midcap 150 TRI. It also has a competitive expense ratio of 0.58% pa.
3. Motilal Oswal ELSS Tax Saver Fund
The return of Motilal Oswal ELSS Tax Saver Fund is equally impressive at 30.49% in the same period. This equity-linked savings scheme, or ELSS as it is known, essentially needs to invest at least 65% of its corpus in equity and related securities. The AUM for the fund as of September stands at Rs.3,835.43 crores, while the expense ratio per annum stands at 0.65%.
4. Motilal Oswal Small Cap Fund
Motilal Oswal’s Small Cap Fund generated 31.06% in the last six months. This fund is an open-ended equity scheme with a primary investment objective predominantly in small-cap stocks. The AUM of this fund as of July is Rs.2,141.03 crores with a 0.41% turnover ratio. This fund is benchmarked against Nifty Smallcap 250 TRI and the expense ratio of the fund is 0.53% per annum.
5. LIC MF Small Cap Fund
LIC MF Small Cap Fund invests in company stocks benchmarked on the Nifty Smallcap 250 TRI and has returned 32.04% over the last six months. This fund with a small-cap orientation has been in the limelight for its excellent returns over the last six months, making it a fund to be considered by investors looking at smaller firms that have huge growth potential.
6. JM Midcap Fund
JM Midcap Fund has given a return of 30.69% return to investors in the last six months. The fund has been benchmarked to Nifty Midcap 150 TRI, having a net asset value of Rs 20.7851 crore in September for its regular plan. The expense ratio is 0.28% for the direct plan and 1.99% for the regular plan, thus keeping a wide range for investors to choose from according to preference.
7. Tata Small-Cap Fund
Tata Small Cap Fund has returned 30.44% in the last six months. Tata Small Cap Fund is benchmarked against Nifty Smallcap 250 TRI. Its expense ratio is 0.3% per annum. The scheme is valued at Rs.47.57 crore.
Conclusion
These seven mutual funds have indeed shown phenomenal returns in the last six months and are proof that mutual funds can be a very effective investment strategy. Investors can choose from small-cap, mid-cap to tax-saving ELSS funds, depending on their financial goals and risk appetite. With returns up to 35% being given, these mutual funds start to look very promising as an opportunity for new and seasoned investors alike in the growth of their wealth.
