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Analysis

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21 equity schemes more than quadrupled money in 10 years

In the last five years, three mutual fund schemes have more than doubled investors' money.

, ET Online|
Updated: Sep 17, 2019, 01.53 PM IST
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The data looks grim: around 90 per cent equity mutual fund schemes have given negative returns in the last one year. Around 56 per cent of them have offered negative returns in two years. One-third of them made losses in the last three years. Does this mean that you can't bank on mutual funds to create wealth anymore?

Relax. You ignored the key point that ETMutualFunds.com has been repeating ad nauseam. Equity mutual funds help you to create wealth over a long period. It still holds true. If you want proof, look at the long-term performance of the equity mutual fund schemes.

In the last five years, three mutual fund schemes- Mirae Asset Emerging Bluechip Fund, SBI Small Cap Fund and Aditya Birla SL Banking & Financial Services Fund - have more than doubled investors' money. Only four schemes have given negative returns during the same period.

Three schemes multiplied investor's wealth by more than four times in the last six years. Around 17 equity schemes tripled invested money in the same time period. Most of these schemes belong to mid and small cap categories. We can say that with higher risk comes higher return over the longer time frames. (See table below for the list of toppers)

Digging deeper we found, 172 equity schemes out of 238, more than doubled the invested sum in six years. The count of 172 does not include those schemes which tripled or quadrupled investors' wealth.

None of the equity schemes have generated negative returns in the last six years.

Next, we checked the performance over the last 10 years, starting September 2009. By this time, stock markets had made a comeback from the lows of 2008.

Some mutual fund schemes have made stupendous returns for their investors in the last 10 years. Three schemes including Canara Robeco Emerging Equities , Aditya Birla SL MNC Fund and ICICI Prudential FMCG Fund grew investors' wealth by over five times.

Around 18 equity schemes more than quadrupled investors' money in the last 10 years. This count does not include schemes which multiplied invested sum by five times. And 63 schemes tripled the invested sum in the same time period. There were a total of 209 equity schemes in the last 10 year period. (See table below for the list of toppers)

Past performance should not form the basis of your investment decision in mutual funds. But given the ongoing pain in the equity mutual funds that started around 18 months ago, it is worth to look how the same schemes have made gains for their investors in the longer time periods.

We have considered large cap, mid cap, multi cap, large & mid cap, small cap, tax-saving or ELSS, sectoral and thematic schemes, dividend yield, contra funds and focused funds under review.

Six-year Toppers
Schemes Rs 1 lakh invested 10 years ago became Absolute return (%)
Mirae Asset Emerging Bluechip 4,21,067 321
SBI Small Cap Fund 4,08,305 308
Reliance Small Cap Fund 4,07,809 308
Canara Robeco Emerging Equities Fund 3,84,991 285
DSP Small Cap Fund 3,50,449 250
Kotak Emerging Equity Scheme 3,49,341 249
L&T Midcap Fund 3,25,922 226
DSP Midcap Fund 3,25,766 226
Principal Emerging Bluechip Fund 3,25,444 225
ICICI Pru Banking & Fin Serv Fund 3,24,698 225
ICICI Pru Midcap Fund 3,18,237 218
Franklin Build India Fund 3,10,895 211
Invesco India Contra Fund 3,08,119 208
Edelweiss Mid Cap Fund 3,07,805 208
Franklin India Smaller Cos Fund 3,07,389 207
Axis Midcap Fund 3,06,989 207
Invesco India Midcap Fund 3,06,711 207
HSBC Small Cap Equity Fund 3,03,618 204
HDFC Mid-Cap Opportunities Fund 3,02,496 202
Tata Mid Cap Growth Fund 3,00,938 201
Source: Ace MF

10-year Toppers
Schemes Rs 1 lakh invested 10 years ago became Absolute return (%)
Canara Robeco Emerging Equities Fund 5,36,955 437
Aditya Birla SL MNC Fund 5,02,635 403
ICICI Pru FMCG Fund 5,01,804 402
ICICI Pru Technology Fund 4,96,293 396
SBI Small Cap Fund 4,88,444 388
SBI Focused Equity Fund 4,86,861 387
DSP Small Cap Fund 4,79,891 380
HDFC Mid-Cap Opportunities Fund 4,69,041 369
Invesco India Multicap Fund 4,65,281 365
ICICI Pru Banking & Fin Serv Fund 4,49,709 350
Aditya Birla SL India GenNext Fund 4,43,438 343
Invesco India Midcap Fund 4,37,321 337
UTI MNC Fund 4,34,342 334
Reliance Pharma Fund 4,33,784 334
Franklin India Smaller Cos Fund 4,31,161 331
Edelweiss Mid Cap Fund 4,27,081 327
Franklin India Prima Fund 4,23,790 324
BNP Paribas Mid Cap Fund 4,21,507 322
UTI Transportation & Logistics Fund 4,18,968 319
DSP Midcap Fund 4,12,967 313
Mirae Asset Large Cap Fund 4,01,158 301
Some good performers might be missing from the list as they would have not completed the desired number of years.
Source: Ace MF




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