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Best Performing Mutual Funds in India Last 5 Years

08 June 2022

Mutual Investors who do not want to invest in individual stocks can benefit from mutual funds. Many people who want to invest in stocks but don't have enough time to follow the stock market carefully choose mutual funds. Mutual funds are divided into asset classes such as equity, debt, and gold. Then, for each of these asset classes, there are various subcategories.

The most significant benefit of investing through a mutual fund is that it provides investors with access to professionally managed, diversified portfolios of stocks, bonds, and other securities that would be difficult to create with a small amount of capital.

In this blog, we have listed the top 10 highest return mutual fund in 5 years which have delivered the best:

Best Performing Mutual Funds in Last 5 Years

S.No.

Top Performing Mutual Funds

1.

Axis Bluechip Fund Direct-Growth

2.

Canara Robeco BlueChip Equity Fund Direct-Growth

3.

PGIM India Mid-Cap Opportunities Fund Direct-Growth

4.

Axis Mid-Cap Direct-Plan-Growth

5.

Nippon India Small Cap Fund Growth

6.

SBI Small Cap Fund Direct-Growth

7.

Parag Parikh Flexi-Cap Fund Direct-Growth

8.

PGIM India Flexi-Cap Fund Direct-Growth

9.

Quant Tax Plan-Growth

10.

Mirae Asset Tax Saver Fund Direct-Growth

Factors to Consider Before Investing in the Best Performing Mutual Funds in Last 5 years

  • The Risk and Return Trade-off of Various Mutual Fund Categories Differ from One Another

One of the most relevant points to remember would be that the risk and return trade-off of different mutual fund segments tends to vary. It is very difficult to determine the various levels of risks in any specific components of mutual funds through specific factors or scales and this is because the risk that comes with every different category of mutual funds is not the same.

  •  Select The Option That Is the Most Suitable and Appropriate For YOU!

Begin your search for the selection of an appropriate mutual fund by determining your investment and financing goals and your risk appetite.

For investment and capital gains exceeding over a year or so, make sure that you engage in a lengthy mutual fund asset where your money will be accumulated for over a period of 12 months or even more but if you are a fan of current income, make sure that you invest in brief and short-term schemes.

  • Category V/S Fund Rationale

One of the most common investing practices amongst people includes investing in a fund that is ranked the highest on internet sites or mutual fund organizations but it is more important to clearly identify the category that is most suitable for yourself.  You can begin analyzing the funds once you've decided which categories your portfolio to include.

The most significant factor to keep in mind is the availability and stability of funds, the rate of annual returns, expense ratio, and financial adviser.

  • Examine the Consistency of Performance of The Mutual Funds as The Uniformity of Return Is the Epitome of Quality Funds.

One additional aspect to look into before seriously considering investing in any mutual fund is its quality, consistency, and time period of performance.  So rather than looking at how much money the scheme has made recently, contemplate how it has performed in the time period of 1-5 years. This indicates whether it can give you consistent returns or only fluctuating returns. 

  • Remember That Over-Diversification Can Be Risky.

It is a well-known fact that "diversification reduces risk", however, risk mitigation is not proportional to over-diversification. Funds will not boost gains beyond a basic level of diversification.

Beginner investors should start with the basics and work their way up. There's a chance that in your haste, you'll end up adding similar funds to your portfolio, which will lead to lower returns.

  • It Is Highly Unlikely for You to Receive the Same Returns Every Year

When people talk about Mutual Fund returns, what they usually mean are annualized returns. This may create an impression that your returns will be consistent year after year.  Assume that the annualized returns of a particular Mutual Fund Scheme are 8%, this does not really guarantee that you'll make 8% yearly. This is due to the fact that mutual fund returns are not consistent.

A Mutual Fund Scheme, for example, could give you +10% returns in 2021 but might only give you -2% returns in 2022. There also may be times when there are no returns at all. As a result, you should expect this variability in your annual returns as well.

  • Direct Plans Lead to Better Outcomes.

Direct plans have a lower-Expense Ratio than regular plans, as a result of which, Direct plans outperform Regular plans in terms of profitability. Some investors are now under the perception that direct and regular Mutual Fund schemes are not the same, but that is not correct.

These are just the different versions of identical schemes and the only distinction is that in the case of direct plans, there is no agent or broker involved in the middle, so no commission or brokerage is charged. This translates to lower financing house costs and, as a result, lower annual investment costs for you.

Performance Of the Best Performing Mutual Funds in India Last 5 years

1) Axis Bluechip Fund Direct-Growth

Axis Bluechip Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund and is the Highest Return Mutual Fund in Last 5 Years. The scheme aims to generate long-term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity-related instruments of large-cap companies.

2) Canara Robeco BlueChip Equity Fund Direct-Growth

Canara Robeco Bluechip Equity Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Canara Robeco Mutual Fund and is well-known as the Best Return Mutual Fund in Last 5 Years. The fund seeks to provide capital appreciation by predominantly investing in companies having a large market capitalization.

Canara Robeco Large cap fund is named to reflect the investment strategy, which is mainly focused on a portfolio that would be concentrated on investing in any of the top 150 stocks ranked on the basis of market capitalization.

3) PGIM India Mid-Cap Opportunities Fund Direct-Growth

PGIM India Midcap Opportunities Fund Direct-Growth is an Equity Mutual Fund Scheme launched by PGIM India Mutual Fund. The scheme seeks to achieve long-term capital appreciation by predominantly investing in equity & equity-related instruments of mid-cap companies.

4) Axis Mid-Cap Direct-Plan-Growth

Axis Midcap Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund. The scheme seeks to achieve long-term capital appreciation by investing predominantly in equity & equity-related instruments of Mid Cap companies.

5) Nippon India Small Cap Fund Growth

India Small-Cap Fund-Growth is an Equity Mutual Fund Scheme launched by Nippon India Mutual Fund. The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies.

6) SBI Small Cap Fund Direct-Growth

SBI Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. The scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of small-cap companies.

7) Parag Parikh Flexi-Cap Fund Direct-Growth

Parag Parikh Flexi Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by PPFAS Mutual Fund. The scheme aims to achieve long-term capital appreciation by investing primarily in equity and equity-related instruments.

8) PGIM India Flexi-Cap Fund Direct-Growth

PGIM India Flexi Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by PGIM India Mutual Fund. The scheme seeks to generate income & capital appreciation by predominantly investing in an actively managed diversified portfolio of equity & equity-related instruments including derivatives.

9) Quant Tax Plan-Growth

Quant Tax Plan-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund. The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential.

The secondary objective is to give dividends and other income. 

10) Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset Tax Saver Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Mirae Asset Mutual Fund. The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments.

Conclusion

This was the list of the top 10 mutual funds in last 5 years To conclude, Mutual Funds are an excellent starting point for investors seeking exposure to the securities or commodity markets. However, returns should not be the only factor considered before selecting a category or sub-category.

Equity, debt, and gold are all asset classes that serve distinct functions. Pursuing returns may or may not lead you to an investment that does not meet your requirements.

Happy Investing Folks!

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA disclaimer, please click here

Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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