10 Mutual Funds That Have Performed Brilliantly in the Last 10 Years

Mutual Funds in India are a great way to invest your money and grow it. Mutual funds are basically a pool of money that you can invest in. You don't actually own stock, but instead, buy shares in a fund that manages the money and pays out dividends based on the performance of the underlying assets. However, they do come with their own set of risks and pitfalls.

Mutual funds are managed by a fund manager who takes care of all aspects of running and managing them, including investing the funds into stocks or bonds and managing any losses incurred during trading. Mutual funds also have a lot of expenses like brokerage fees and distribution costs that need to be paid by the investors.

These expenses can really eat up a significant portion of any returns you get from these investments. While it is true that mutual funds have lower management fees than other investment options like stocks, bonds, and commodities, there's still an overhead cost associated with running them that needs to be factored into your overall returns. Hence, you should consider investing in Mutual Funds that give you high returns. 

Best Mutual Fund for 10 Years Which Have Provided Great Returns

1. Reliance Large Cap

Reliance Large Cap fund has consistently beaten its benchmark, NIFTY 100 TRI.

By looking at the portfolio of securities, we can say that the fund managers are firm believers in India’s growth story.

This is because there is heavy reliance on sectors such as financials, healthcare, engineering, etc. Some of the great companies in the portfolio are SBI, L&T, Axis Bank Ltd., ICICI Ltd., HDFC Bank Ltd., ITC Ltd., Bajaj Finance, etc.

Investment Objective

The fund has a two-fold investment objective:

• To generate long-term capital appreciation by investing in equity and equity-related instruments of companies. Fund managers also take note that the market capitalization of the securities invested in are within the range of the highest and lowest market caps of the BSE 200 Index;
• The secondary objective of the fund is to invest in debt and money market securities and seek consistent returns

2. ICICI Prudential Bluechip Equity Fund 

ICICI Prudential Bluechip Fund has a strong track record of robust performance. It has beaten its benchmark NIFTY 100 TRI since its inception.

With a major focus on key sectors and big names such as ICICI Bank, HDFC Ltd. HDFC Bank Ltd., ITC Ltd., Infosys, Motherson Sumi Systems Ltd., etc, this fund provides enough opportunities for capital appreciation in key sectors which are poised to grow (Financials, auto, IT, consumer goods).

Investment Objective

The investment objective for the fund is two-fold as highlighted below:

• The fund managers seek to generate long-term capital appreciation and income distribution through investment in Top 200 stocks (equity and equity-related instruments) in terms of market capitalization on the National Stock Exchange (NSE);
• The fund manager also puts some portion of the fund in debt securities and money market instruments

3. ICICI Prudential Bluechip Equity Fund

Though the fund is in the mid-cap space, the volatility for the fund is lower than that of the benchmark.

The expense ratio for the fund is one of the lowest at just 0.80 per cent. Given the strong fundamentals of the companies invested in (such as Bharat Financial Inclusion Ltd., Atul Ltd., RBL Bank Ltd., Ramco Cements Ltd., PI Industries Ltd., etc.), this fund becomes an ideal investment for investors having a higher risk appetite.

It would be best for investors to invest in this scheme now and wait for the next 10-year challenge! The fund would surely provide handsome returns.

4. Tata Equity P/E Fund 

Tata Equity P/E Fund has beaten the market on a consistent basis. This has been possible due to a healthy mix of large caps, and mid-caps stocks.

At the same time, the fund also invests a portion of the portfolio in money market funds.

One of the marked differences between the fund is that the exit load is zero per cent if redeemed within 18 months. This leads to motivation amongst investors to save for a longer period of time (In most funds, the exit load is 1 per cent if redeemed within 1 year). The fund invests in sectors such as financial services, automobiles, and energy. This has led the fund to beat its benchmark Nifty 50 Total Return by a significant margin throughout its 10-year history.

Investment Objective

The investment objective of the fund is to provide reasonable and regular income to investors along with possible capital appreciation.

5. HDFC Small Cap Fund 

This fund is considered one of the best small-cap funds by financial advisers and has been consistent in its performance

In 2018, there was a market correction, however, this gives us a great opportunity to invest in this scheme.

Some of its top holdings are KEC International, SKF India Ltd., NRB Bearings Ltd., Balkrishna Industries, Sharda Cropchem Ltd., and NIIT Technologies Ltd. Also, a small portion is also invested in money market instruments. Therefore, investors can think of investing in this scheme for the long term (the best would be for the next 10 years or more)

Investment Objective

The investment objective of the fund is to generate long-term capital appreciation for investors by investing in three major instruments, namely:

• Equity and equity-related instruments;
• Money market instruments;
• Equity Derivatives

6. Aditya Birla Sun Life Tax Relief 96 

ELSS not just seeks capital appreciation for the fund, but also provides investors with tax benefits. Aditya Birla Sun Life Tax Relief 96 Fund is one of the best ELSS funds available in the market today.

One of the major advantages of this kind of fund is to inculcate the habit of long-term investing amongst investors as the lock-in period for the fund is 3 years. Not just this, the exit load of the fund is NIL.

Investment Objective

Being an ELSS fund, the objective is to provide long-term capital growth along with tax exemptions to investors.

The maximum amount of exemption that can be claimed by an investor under ELSS (applicable under section 80C of the Income Tax Act, 1962) is INR 1.5 lakhs. Therefore, this fund provides a two-fold benefit to investors

• Capital appreciation and
• Tax benefits

7. ICICI Prudential Equity & Debt Fund 

This is considered one of the most stable hybrid funds and is managed by Mr S Naren and Manish Banthia, who can be considered mavericks in the field of fund management.

Secondly, strong reliance on key sectors such as finance (equity- 22.4 per cent; debt – 79.1 per cent) and energy (25.4 per cent);

Investment Objective

The investment objective of the fund is to generate long-term capital appreciation by investing in the following instruments:

• Equity and equity-related instruments;
• Fixed Income Securities

8. Mirae Asset India Equity Fund

This is a 5-star-rated multi-cap fund by Groww and has substantially beaten its benchmark over the years (table given below)

The fund has a 35% allocation in financial sectors. ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank, etc are some of the names.

Though it is a multi-cap fund, the risk for the fund is more or less similar to that of the market; Neelesh Surana along with Mr Harshad Borawake, are the fund managers and they have extensive experience in the field of fund management.

Investment Objective

The investment objective of the fund is to generate long-term capital appreciation for the investors. The fund managers achieve this by capitalizing on the potential investment opportunities in the equity and equity-related instruments.

9. ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Fund has beaten its benchmark, VR Balanced Fund, over the years.

Investment Objective

This scheme is also known as the Wealth Optimizer Plan. The scheme seeks to provide long-term capital appreciation and  income distribution to investors by using the following instruments:

• Equity Derivatives strategies;
• Arbitrage opportunities;
• Pure equity investments

10. DSP Tax Saver Fund

DSP Tax Saver Fund is an apt investment for people seeking twin-fold benefits of capital appreciation and tax benefits. The fund size the expense ratio is reasonable, thereby highlighting that the fund has huge potential to grow going forward.

Investment Objective

Like most other ELSS funds, DSP Tax Saver Fund too has a two-fold benefit of investing.

The first is to generate medium to long-term capital appreciation from a diversified portfolio of equity and equity-related instruments.

The second is that the fund receives benefits under Section 80 ‘C’ of the Income Tax Act- 1961