Top 5 Mutual Fund Schemes and Its Returns
Mutual Fund Schemes
Top 5 Mutual Fund Schemes and Their Returns: A Comprehensive Guide
As parents, ensuring a secure and prosperous future for our children is a priority that often keeps us awake at night. We envision a future where our children not only have access to quality education but also have the financial stability to thrive in adulthood.
One powerful way to achieve these goals is through strategic investments in mutual funds. Mutual funds, known for their diversified portfolios and professional management, can offer impressive returns that may significantly contribute to long-term financial goals.
In this detailed analysis, we will explore five top mutual fund schemes that have demonstrated strong returns over the past five years, even amid fluctuations in the stock market.
We will also delve into the potential growth of these investments over a 25-year period, illustrating how disciplined investing can pave the way for substantial wealth accumulation.
Overview of the Top 5 Mutual Fund Schemes
- Quant Small Cap Mutual Fund Scheme
- Axis Small Cap Mutual Fund Scheme
- Quant Mid Cap Mutual Fund Scheme
- SBI Small Cap Mutual Fund Scheme
- PGIM India Midcap Mutual Fund Scheme
We will examine the historical performance of these schemes, their returns over the last five years, and what the future could hold if invested in a systematic investment plan (SIP) for a prolonged period.
1. Quant Small Cap Mutual Fund Scheme
Performance Overview: The Quant Small Cap Mutual Fund has been a standout performer in the small-cap category, providing impressive returns to its investors. Over the past five years, this scheme has delivered an average annual return of 18.93%.
Investment Growth Analysis: If an investor had placed ₹1 lakh in the Quant Small Cap Mutual Fund five years ago, that investment would have grown to approximately ₹2,37,950. This represents a significant increase of 137.95% over the investment period.
Systematic Investment Plan (SIP) Returns: For investors who opted for a monthly SIP of ₹10,000, the results are even more remarkable. Over the past five years, the average annual SIP return for this scheme has been 30.46%. A monthly investment of ₹10,000 would now be worth approximately ₹12,39,697, highlighting the power of disciplined investing in high-growth assets.
2. Axis Small Cap Mutual Fund Scheme
Performance Overview: The Axis Small Cap Mutual Fund Scheme has also performed exceptionally well, offering an average annual return of 18.92% over the last five years. This consistency reflects its robust portfolio and effective management.
Investment Growth Analysis: A ₹1 lakh investment in the Axis Small Cap Mutual Fund five years ago would now be valued at about ₹2,37,851. This growth of 137.85% underscores the fund’s strong performance.
Systematic Investment Plan (SIP) Returns: For SIP investors, the Axis Small Cap Mutual Fund has delivered an average annual return of 23.44% over the past five years. If someone had invested ₹10,000 per month, their investment would now stand at ₹10,53,714. This demonstrates the substantial benefits of regular investing combined with high returns.
3. Quant Mid Cap Mutual Fund Scheme
Performance Overview: The Quant Mid Cap Mutual Fund Scheme has been another stellar performer, offering an average annual return of 18.69% over the past five years. This reflects the scheme’s effective strategy in capturing mid-cap growth opportunities.
Investment Growth Analysis: An initial investment of ₹1 lakh in this scheme would have grown to approximately ₹2,35,578 over five years, showing a growth rate of 135.58%.
Systematic Investment Plan (SIP) Returns: For a monthly SIP of ₹10,000, the scheme has provided an average annual return of 24.61%. The total value of this investment after five years would be around ₹10,82,911. This demonstrates the significant impact of compounding returns when invested regularly in a well-performing fund.
4. SBI Small Cap Mutual Fund Scheme
Performance Overview: The SBI Small Cap Mutual Fund Scheme has consistently delivered strong returns, with an average annual return of 18.25% over the past five years. This performance reflects the fund’s focus on small-cap stocks with high growth potential.
Investment Growth Analysis: An investment of ₹1 lakh made five years ago in this scheme would now be worth approximately ₹2,31,190, representing a growth of 131.19%.
Systematic Investment Plan (SIP) Returns: The SIP returns for the SBI Small Cap Mutual Fund have averaged 20.60% annually over the last five years. A monthly SIP of ₹10,000 would have grown to approximately ₹9,85,677, demonstrating steady growth and the benefits of long-term investing.
5. PGIM India Midcap Mutual Fund Scheme
Performance Overview: The PGIM India Midcap Mutual Fund Scheme has offered robust returns, with an average annual return of 17.49% over the past five years. This performance highlights the fund’s ability to capitalize on mid-cap growth opportunities effectively.
Investment Growth Analysis: A ₹1 lakh investment in this scheme five years ago would now be worth around ₹2,23,917, reflecting a growth rate of 123.92%.
Systematic Investment Plan (SIP) Returns: For SIP investors, the PGIM India Midcap Mutual Fund has provided an average annual return of 25.33% over the past five years. An investment of ₹10,000 per month would now be valued at approximately ₹11,01,190. This demonstrates the significant wealth accumulation potential of systematic investments in high-performing mid-cap funds.
Long-Term Investment Potential
To illustrate the long-term growth potential of these mutual fund schemes, let’s project their performance over a 25-year period. We will assume that the average annual returns for the next 25 years will be consistent with the past five years’ performance.
1. Quant Small Cap Mutual Fund Scheme
Future Value Calculation: If a child were to invest ₹10,000 per month in the Quant Small Cap Mutual Fund through SIP for 25 years, and the returns remained consistent at 30.46% annually, the future value of this investment would be over ₹25 crore. This significant amount would provide substantial financial support upon reaching adulthood, reflecting the power of long-term investing and compounding returns.
2. Axis Small Cap Mutual Fund Scheme
Future Value Calculation: For the Axis Small Cap Mutual Fund, a monthly SIP of ₹10,000 over 25 years, with an average annual return of 23.44%, would accumulate to approximately ₹13 crore. This demonstrates how even slightly lower but still high returns can lead to substantial wealth over a long investment horizon.
3. Quant Mid Cap Mutual Fund Scheme
Future Value Calculation: Investing ₹10,000 per month in the Quant Mid Cap Mutual Fund for 25 years, assuming a consistent annual return of 24.61%, would result in a future value of about ₹14 crore. This illustrates the impact of maintaining a disciplined investment strategy in a well-performing fund.
4. SBI Small Cap Mutual Fund Scheme
Future Value Calculation: For the SBI Small Cap Mutual Fund, a monthly SIP of ₹10,000 over 25 years, with an average annual return of 20.60%, would grow to approximately ₹8 crore. Although this is lower compared to the others, it still represents significant wealth accumulation.
5. PGIM India Midcap Mutual Fund Scheme
Future Value Calculation: A monthly SIP of ₹10,000 in the PGIM India Midcap Mutual Fund, with an annual return of 25.33% over 25 years, would result in a future value of around ₹16 crore. This highlights the impressive potential for wealth creation through consistent, long-term investing in a high-performing fund.
Final Remarks
Investing in mutual funds can be a powerful strategy for securing your child’s financial future. The top five mutual fund schemes discussed here—Quant Small Cap, Axis Small Cap, Quant Mid Cap, SBI Small Cap, and PGIM India Midcap—have shown impressive returns over the past five years, even in a volatile market environment.
The projections for a 25-year investment horizon reveal the substantial wealth that can be accumulated through disciplined SIP investments.
Whether aiming for a substantial corpus or a more conservative growth, these mutual fund schemes offer a range of options to suit different risk appetites and financial goals.
For parents looking to secure a prosperous future for their children, understanding and leveraging these investment opportunities can be a critical step in achieving long-term financial success.
By choosing the right mutual funds and investing consistently, you can pave the way for your child’s financial independence and stability, ensuring they have the resources they need to thrive as adults.
