Mutual fund investors often seek funds that can significantly increase their investments in a short period. Recent data analysis by ETMutual Funds reveals that 13 equity mutual fund schemes managed to more than quadruple investor wealth over the past five years. Out of approximately 189 equity mutual funds that have been around for five years, these stand out for their exceptional returns.
For instance, the Quant Small Cap Fund achieved a remarkable 6.48-fold increase in investor wealth over five years. This means a Rs 1 lakh investment five years ago would now be worth Rs 6.48 lakh, reflecting a Compound Annual Growth Rate (CAGR) of 45.30%.
Similarly, the Bank of India Small Cap Fund grew investor wealth by 4.89 times, with a CAGR of 37.33%. Therefore, a Rs 1 lakh investment in this fund would have appreciated to Rs 4.89 lakh.
The Nippon India Small Cap Fund, the largest in terms of assets under management in the small cap category, increased investor wealth by 4.87 times.
Quant Mutual Fund’s other schemes also performed exceptionally well. The Quant Mid Cap Fund, Quant ELSS Tax Saver Fund, and Quant Flexi Cap Fund saw wealth growth of 4.83, 4.48, and 4.44 times, respectively, over the same period.
In the small cap category, the Canara Robeco Small Cap Fund and Edelweiss Small Cap Fund reported increases of 4.31 and 4.30 times, respectively. Hence, an initial investment of Rs 1 lakh would have grown to Rs 4.30 lakh and Rs 4.29 lakh in these funds.
The Motilal Oswal Midcap Fund also delivered substantial returns, multiplying wealth by 4.29 times, with a CAGR of 33.76%.
Other notable small cap funds included Tata Small Cap Fund, Kotak Small Cap Fund, and Invesco India Smallcap Fund, which multiplied investor wealth by 4.17, 4.12, and 4.07 times, respectively. They achieved CAGRs of 33.04%, 32.74%, and 32.38% over the five-year period.
Additionally, the Quant Active Fund saw a wealth increase of 4.06 times, with a CAGR of 32.35%.
Other funds on the list saw growth between 1.93 times and 3.90 times, with CAGRs ranging from 14.09% to 31.25% over the same period.
It’s important to note that these findings are purely for informational purposes. Investors should not base their investment or redemption decisions solely on this analysis. Instead, one should consider their own risk tolerance, investment goals, and time horizon before making any investment decisions.
Disclaimer: The opinions and recommendations expressed by experts are their own and do not necessarily reflect the views of The Economic Times.