Long- term Investing | These MFs multiplied lumpsum money 66 times over 20 years Indian mutual fund industry has a rich track record of rewarding the investors handsomely those who were patience and stayed invested for a long term. Here are equity diversified funds that returned more than 20% of annualised return in the lump-sum amount made 20 years before. They multiplied their investors' wealth upto 66 times in the last 20 years
July 12, 2022 / 01:35 PM IST
Long-term investing may sound cliché. But it is not a myth. Well-managed mutual fund schemes have proved with their long-term track records that wealth can be built over the long term. But what is long-term really? Most experts say five years. But the longer, the better. For this study, we have taken 20 years. On the face of it you might say 20 years is a bit too long as we seldom stay invested for that long in a single scheme. But with 69 equity funds in the Rs 37 lakh crore Indian mutual fund industry having completed 20 years, it is worth seeing how various schemes would have done in this time frame. Here is the list of equity diversified funds that multiplied investors' lump-sum money up to 66 times over 20 years. (Note that past performance is not indicative of future results. (Source: ACEMF))
Nippon India Growth Fund (earlier known as Reliance Growth Fund) has been one of the biggest wealth creators among equity-oriented mutual fund schemes. The scheme has been managed as a midcap-oriented fund since its launch. Though it put up an average show in recent years, it had once been a top performing scheme among its peers when it was managed by Sunil Singhania, the former head of equities at Reliance Mutual Fund. If you had invested a lump-sum of Rs 1 lakh, it would have multiplied about 66 times in the last 20 years at a CAGR of nearly 23.3 percent.
SBI Magnum Global Fund (formerly known as Magnum Global Fund) got its attributes changed to investing dedicatedly in MNC stocks during the re-categorisation exercise of mid-2018. Earlier, it was a diversified equity fund with specific focus on mid- and small-capitalisation stocks. R Srinivasan has been the prime part of the fund management team of this scheme since 2009.
Franklin India Prima Fund has been managed with the mid-cap heavy portfolio since inception. R Janakiraman has been managing the scheme since 2008. An investment of Rs 1 lakh made in the scheme 20 years ago would have become Rs 47.4 lakh, growing at a CAGR of nearly 21.3 percent.
Though looking like a diversified fund, SBI Contra Fund has been one of the few schemes following the contrarian investment strategy. And it paid off too. Contra funds take a stance contrarian to the broader market thought process. Formerly called ‘Magnum Contra’, it has found favour amongst investors since its initial days.
HDFC Flexi Cap Fund (erstwhile HDFC Equity Fund) has been a diversified equity fund investing across stocks irrespective of the market capitalisation. The money invested in the scheme has appreciated as much as 44 times in the last 20 years.
DSP Flexi Cap Fund (formerly known as DSP BlackRock Equity fund) was once a value-oriented scheme. Currently, it follows a flexicap approach of investing across sectors and stocks. If you had invested a lump-sum of Rs 1 lakh 20 years ago, it would have multiplied about 43 times at a CAGR of nearly 20.8 percent.
Earlier known as ‘SBI Magnum Taxgain’, SBI Long Term Equity Fund is an ELSS scheme managed with a flexicap orientation. Money invested in the scheme has appreciated as much as 43 times in the last 20 years.
ICICI Pru LT Equity Fund (Tax Saving) is an ELSS scheme managed with a flexicap orientation. An investment of Rs 1 lakh made in the scheme 20 years ago would have grown to Rs 42.1 lakh at a CAGR of nearly 20.6 percent.
SBI Large & Midcap Fund (previously called SBI Magnum Multiplier Fund) managed its portfolio with a combination of large-cap, mid-cap and small-cap stocks. Currently, it is part of the Large & Midcap Fund category investing at least 35 percent in large-cap and mid-cap stocks.
HDFC Top 100 Fund is now part of the large-cap fund category. Called ‘HDFC Top 200 Fund’ earlier, it was one of the flagship funds in the Indian mutual fund industry that rewarded investors handsomely. Though the scheme delivered mediocre performance in the recent years, its long-term performance has been noteworthy. Money invested in the scheme has appreciated as much as 40 times in the last 20 years.