Who said only stocks can turn into multi-baggers? Many equity mutual funds, too, have delivered spectacularly over the long term. Take for instance the five equity funds that we have highlighted here. These schemes have recorded 23.8-27 percent returns annually over the last 20 years. But very few investors would have had the patience to sit through these 20 years patiently to get rewarded. Those who did, would have seen their money grow a 100-fold. Here are the five funds that grew investors' money by 72-119 times.
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Topping the chart is Nippon India Growth fund. It is one of the oldest midcap schemes, having been started in 1995 by Reliance Mutual Fund. It has delivered a staggering 27 percent returns annually over 20 years, according to data from Valueresearch. So, you money would have grown by 119 times in these 20 years. Rs 1 lakh invested in 2001 would have grown to nearly Rs 1.2 crore now.
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Franklin Prima is the next fund in the list with a healthy 26.1 percent returns over 20 years. The scheme, too, is a midcap fund and was started in 1993. Rs 1 lakh invested in Franklin Prima in 2001 would have grown to Rs 1.03 crore now.
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Despite being a sectoral fund, ICICI Prudential Technology fund has been a top-notch performer over the last couple of decades. The fund has delivered 24 percent annually over 20 years. Rs 1 lakh invested in 2001 would be Rs 74.2 lakh now. The scheme invests mainly in stocks of software services companies.
SBI Magnum Global fund has delivered 24 percent compounded annually since 2001. It is a fund that invests in stocks of multinational companies listed in India and also a few overseas stocks. An investment of Rs 1 lakh made 20 years ago would be worth Rs 74.2 lakh. This fund has a long history, given that it was started in 1994.
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SBI Contra completes the list of the top five equity funds in terms of performance over the past 20 years. The scheme has delivered 23.9 percent annually over this period. An investment of Rs 1 lakh would have grown to Rs 72.2 lakh in these two decades. As the name suggests, the scheme follows a contrarian investment strategy.
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The funds mentioned above are not our recommendations. To illustrate the idea that serious wealth creation can happen via well-chosen mutual funds is the reason behind highlighting these funds. Consult your advisor or choose on your own by going through our MC30 list of select mutual funds.
