Before investing in a mutual fund scheme, investors tend to examine its past returns and a host of other aspects, including the reputation of the fund house, macro-economic factors and the scheme’s category.
One of the key factors that determine a scheme’s reputation is the ability to beat its benchmark index, which is a standard against which the performance of a mutual fund scheme can be measured.
Beating the benchmark
The ability to beat the benchmark index is one key criterion for determining whether a mutual fund scheme is worth investing in. Here, we examine some value mutual funds which gave good performance in the past 10 years and beat the benchmark index.
The top-performing value schemes include HSBC Value Fund, JM Value Fund and Nippon India Value Fund.
Value Fund | 10-year-return | Benchmark (%) |
HSBC Value Fund | 19.20 | 15.02 |
JM Value Fund | 18.89 | 15.16 |
Nippon India Value Fund | 17.54 | 15.02 |
ICICI Prudential Value Discovery Fund | 17.14 | 15.02 |
Tata Equity PE Fund | 17.18 | 15.02 |
Templeton India Value Fund | 16.37 | 15.02 |
Aditya Birla Sun Life Pure Value Fund | 13.95 | 15.02 |
(Source: AMFI)
To put this in perspective, if an investor had invested ₹1 lakh in HSBC Value Fund 10 years ago, it would have grown to ₹5.79 lakh
Likewise, the same investment would have grown to ₹5.64 lakh in the case of JM Value Fund, which gave an 18.89 per cent return.
Similarly, an investment of ₹1 lakh in Nippon India Value Fund would have grown to ₹5.03 lakh in 10 years.
Investors should, meanwhile, understand that the high returns given by a scheme in the past do not guarantee future returns. So, it is not recommended to opt for a scheme solely on the basis of its past returns.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.)
First Published:
31 May 2024, 07:16 PM IST
FAQs
Here are five top-performing large cap mutual funds in the last 10 years:
- Nippon India Large Cap Fund – Growth. ...
- ICICI Prudential Bluechip Fund – Growth. ...
- Mirae Asset Large Cap Fund – Regular – Growth. ...
- Baroda BNP Paribas Large Cap Fund – Regular Plan – Growth. ...
- Canara Robeco Bluechip Equity Fund – Regular Plan – Growth.
What mutual fund has outperformed the S&P 500 for 10 years? ›
Fidelity Contrafund (FCNTX)
Originally a contrarian-styled fund, FCNTX has evolved over the years to adopt a growth investing strategy. Over the last 10 years, this fund has strongly outperformed its benchmark, the S&P 500, with an annualized 14.9% total return versus 12.9%.
Which mutual fund beat the benchmark? ›
SBI BlueChip Fund, a prominent large cap fund, gave 16.63% return in the said period against 17.94% by its benchmark (BSE 100 - TRI). Kotak Emerging Equity Fund, the second largest mid cap fund based on assets managed, gave 25.59% return against 29.14% by its benchmark (Nifty Midcap 150 - TRI).
Which mutual funds are performing the best? ›
Best-performing U.S. equity mutual funds
Ticker | Name | 5-Year Return (%) |
---|
FDGRX | Fidelity Growth Company Fund | 23.11 |
SCIOX | Columbia Seligman Tech & Info Adv | 22.54 |
FSBDX | Fidelity Series Blue Chip Growth | 22.33 |
FBGRX | Fidelity Blue Chip Growth | 21.51 |
3 more rowsSep 2, 2024
What if I invest $1,000 in mutual funds for 10 years? ›
Mutual Funds over a long period of time, have given about 12% year on year Returns. So if we consider thousand investment for 10 years, here are your numbers: Invested amount will be 1,20,000. If we expect 12% Returns you are returns will be 1,12,339.
What is the average return on mutual funds for 10 years? ›
Mutual funds have historically averaged annual returns of 9–12%, but these returns are subject to market volatility and can vary by category. For example, in India, the average 10-year return for mutual funds is 20%.
Is there a better investment than the S&P 500? ›
If you want to invest successfully, one of your best options is to stick with the S&P 500. But what if you want even more growth? The Vanguard Small-Cap ETF (NYSEMKT: VB) could be your best bet.
Which Vanguard mutual fund consistently beat the S&P 500? ›
Vanguard Growth & Income Fund (VGIAX)
VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023. Over the past 10 years, this fund's average annual return beats the S&P 500's by a nose.
What is the best mutual fund to invest in in 2024? ›
Summary: Best Mutual Funds
Fund (ticker) | 10-Year Avg. Ann. Return |
---|
Fidelity International Index Fund (FSPSX) | 5.10% |
Fidelity U.S. Sustainability Index Fund (FITLX) | 14.77% since inception (May 2017) |
Schwab S&P 500 Index Fund (SWPPX) | 12.70% |
Shelton Nasdaq-100 Index Investor Fund (NASDX) | 17.09% |
6 more rowsSep 4, 2024
How do I know if my mutual fund portfolio is good or bad? ›
Scale Performance of the Fund Against the Benchmark
Well, the first thing is to analyze the performance of the benchmark. I am sure that you are aware that every fund has a benchmark that is used to track and measure its performance. A good mutual fund is one that constantly beats its benchmark in the long term.
BEST MUTUAL FUNDS
- JM Flexicap Fund (Direct) Growth Option. ...
- Bank of India Flexi Cap Fund Direct Growth. ...
- Motilal Oswal Flexicap Fund Direct Plan Growth. ...
- Invesco India Flexi Cap Fund Direct Growth. ...
- Quant Flexi Cap Fund Growth Option Direct Plan. ...
- 360 ONE Flexicap Fund Direct Growth. ...
- ITI Flexi Cap Fund Direct Growth.
How do I choose a benchmark for a fund? ›
A good benchmark should correspond to the investment style of an investor and the expected returns from the portfolio. It means that certain benchmarks will be appropriate for certain portfolios, while, at the same time, being inappropriate for other portfolios.
What is the best performing mutual fund over the past 10 years? ›
No. 1 on the list is the ProFunds Semiconductor UltraSector Fund, which yielded 29.21% over the past decade. In second place is the Direxion Monthly NASDAQ-100 Bull 1.75X Fund, with 28.16%. And the bronze medal goes to the Rydex NASDAQ-100 2x Strategy Fund, which yielded 26.58%.
What is the safest mutual fund to invest in? ›
List of Best Low Risk Mutual Funds in India sorted by Returns
- Quant Multi Asset Fund. ...
- HYBRID Aggressive Hybrid. ...
- HYBRID Multi Asset Allocation. ...
- HYBRID Aggressive Hybrid. ...
- Baroda BNP Paribas Aggressive Hybrid Fund. ...
- Mirae Asset Aggressive Hybrid Fund. ...
- Canara Robeco Equity Hybrid Fund. ...
- Edelweiss Balanced Advantage Fund.
What is a better investment than mutual funds? ›
Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
Which mutual fund is best for the next 5 years? ›
Best SIP to Invest for 5 Years
Name | NAV | 5 Yr Returns |
---|
Quant Flexi Cap Fund Direct - Growth | ₹ 120.68 | 37.78% |
Tata Small Cap Fund Direct - Growth | ₹ 47.81 | 36.77% |
Edelweiss Small Cap Fund Direct - Growth | ₹ 49.49 | 36.65% |
Invesco India Small Cap Fund Direct - Growth | ₹ 46.52 | 36.22% |
31 more rows
Which mutual fund is giving the highest return? ›
Fund House Fund Category Fund Rank and Ratios Fund Parameters Investment Parameters Filter
Scheme Name | Plan | 1Y |
---|
Kotak India EQ Contra Fund - Direct Plan - Growth | Direct Plan | 53.19% |
SBI Contra Fund - Direct Plan - Growth | Direct Plan | 43.17% |
Sponsored AdvInvest Now Invesco India Multicap Fund - Direct Plan - Growth | Direct Plan | 51.26% |
24 more rows
Which mutual fund gives 20 percent return? ›
Other mutual fund schemes which gave over 20 percent return in the past half a decade include Aditya Birla Sun Life Flexi Cap Fund, DSP Flexi Cap Fund, Franklin India Flexi Cap Fund, HSBC Flexi Cap Fund and Parag Parikh Flexi Cap Fund.
Which SIP gives the highest return in the last 10 years? ›
Top Performing SIPs for 10 Years
Fund Name | 1 Year | 3 Years |
---|
SBI Bluechip Fund | 16.43% | 22.14% |
EDELWEISS Balanced Advantage Fund | 11.41% | 14.38% |
MIRAE ASSET Large Cap Fund | 12.59% | 18.52% |
CANARA ROBECO Bluechip Equity Fund | 13.97% | 18.45% |
3 more rows