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5 equity fund categories that delivered the highest returns in 10 years

Sector and theme-based mutual funds dominate the top five categories that delivered 15-20 percent returns over the past decade

July 21, 2021 / 09:02 AM IST
We are often told that diversified mutual funds are ideal for long-term investments. But the experience over the past 10 years shows that even narrow sector and theme funds delivered well. Small and mid-cap funds were also among the best in terms of returns.
We are often told that diversified mutual funds are ideal for long-term investments. But the experience over the past 10 years shows that even narrow sector and theme funds delivered well. Small and mid-cap funds were also among the best in terms of returns.
Equity funds that focused on the technology sector topped the charts in the 10-year period, delivering 19.7 percent returns, according to data from Valueresearch. Thanks to the rally in IT stocks, these funds gained from global clients investing in digital transformation and innovation.
Equity funds that focused on the technology sector topped the charts in the 10-year period, delivering 19.7 percent returns, according to data from Valueresearch. Thanks to the rally in IT stocks, these funds gained from global clients investing in digital transformation and innovation.
Small-cap funds come second in the list with 17.8 percent annual returns in the last 10 years. Much of the gains in these funds is due to the stellar rally in the small-cap space from the March 2020 lows. Several small-cap funds recorded 100 percent or higher returns in the last 16 months.
Small-cap funds come second in the list with 17.8 percent annual returns in the last 10 years. Much of the gains in these funds is due to the stellar rally in the small-cap space from the March 2020 lows. Several small-cap funds recorded 100 percent or higher returns in the last 16 months.
Mid-cap funds were not far behind their small-cap peers, delivering 17.2 percent annual returns over the last 10 years. This category was a beneficiary of the value investing style finding favour with money managers once again. The broader market rally from March 2020 also helped.
Mid-cap funds were not far behind their small-cap peers, delivering 17.2 percent annual returns over the last 10 years. This category was a beneficiary of the value investing style finding favour with money managers once again. The broader market rally from March 2020 also helped.
Funds that invested exclusively in pharma stocks, including hospitals, diagnostic labs, drug manufacturers etc. delivered 16.7 percent returns in the last 10 years. With the COVID-19 pandemic raging over the past year-and-a-half, these stocks came back into the reckoning after a few years of lull earlier.
Funds that invested exclusively in pharma stocks, including hospitals, diagnostic labs, drug manufacturers etc. delivered 16.7 percent returns in the last 10 years. With the COVID-19 pandemic raging over the past year-and-a-half, these stocks came back into the reckoning after a few years of lull earlier.
Funds focused on MNC stocks listed in India delivered 15.6 percent returns over the last 10 years. But their performance in recent years has been below par. Soaring valuations of these stocks and the availability of domestic alternatives meant that the demand for these shares may have dropped a wee bit.
Funds focused on MNC stocks listed in India delivered 15.6 percent returns over the last 10 years. But their performance in recent years has been below par. Soaring valuations of these stocks and the availability of domestic alternatives meant that the demand for these shares may have dropped a wee bit.
The returns delivered over the last 10 years may not be repeated in the coming decade. These are not recommendations. Theme and sector funds are risky. Choose and invest in funds based on your risk appetite, goal horizon and surplus availability. Take the help of an advisor or expert if you cannot decide on your own.
The returns delivered over the last 10 years may not be repeated in the coming decade. These are not recommendations. Theme and sector funds are risky. Choose and invest in funds based on your risk appetite, goal horizon and surplus availability. Take the help of an advisor or expert if you cannot decide on your own.
Venkatasubramanian K
first published: Jul 21, 2021 09:02 am

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