5 Best Mutual Funds with solid and consistent returns

Best Mutual Funds with solid and consistent returns in long run5 Best Mutual Funds with solid and consistent returns in long run

Generally I analyze, Best Mutual Funds to invest in India based on 5 years performance, ranking, investment objectives and several other parameters. However investors would keep asking me about the best mutual funds to invest which have been consistently performing over 10 years or in long run. This provides high confidence that such mutual funds would continue to perform well in the long run of 10 to 15 years. I have analyzed 5 best mutual funds to invest for long term which yielded consistent returns of over 19% per annum since inception of these mutual funds. These mutual funds have been launched more than 10 years back.

Also Read: Best Diversified mutual funds to invest in India

Do we need to choose mutual funds based on its returns?

The primary criterion is not that we should choose mutual funds based on its returns. However, if I would tell you to invest based on ranking or investment objective, you would just ignore my advice. Finally, every investor boils down to returns when he finally makes a call whether to buy a mutual fund or not.

How we filtered these Best Mutual funds with solid and consistent returns?

  • Mutual funds were picked from Largcap, Diverisifed and Hybrid category.
  • Assets under management (AUM) is more than Rs 3000 Crores. This indicates that it gained investor confidence and more and more investors are investing in these mutual funds
  • Crisil rated these mutual funds from 1 to 3 rankings
  • Value Research Online rated these mutual funds from 3-Star to 5-Star
  • Mutual funds which provided annualized Returns of more than 19% since inception have been picked. Minimum annualized returns in the last 5 years are 13%.

Best Mutual Funds with solid and consistent returns in long run

1) Birla Sun Life Frontline Equity Fund (Large cap)

  • This mutual fund is from large cap category which invests majority in large cap stocks. This mutual fund was launched in 2002.
  • It consistently provided annualized returns of over 14% in the last 5 years and 23.59% since inception (11 years).
  • Crisil rated as Rank-2 and Value Research Online rated as 4-Star

2) HDFC Top-200 Fund (Large cap)

  • This mutual fund is also from large cap category which invests majority in large cap stocks. This mutual fund was launched in 1996.
  • It consistently provided annualized returns of over 13% in the last 5 years and 21.56% since inception (17 years).
  • Crisil rated as Rank-3 and Value Research Online rated as 4-Star
  • It invested heavily in SBI where it underperformed and took beating on returns in 2011. However it was able to recover soon.

3) Franklin India Blue chip Fund (Large cap)

  • This mutual fund is also from large cap category which invests majority in large cap stocks. This mutual fund was launched in 1993.
  • It consistently provided annualized returns of over 13% in the last 5 years and 22.71% since inception (20 years).
  • Crisil rated as Rank-3 and Value Research Online rated as 5-Star

4) ICICI Prudential Dynamic Plan (Diversified)

  • This mutual fund is from diversified category which invests majority in large cap stocks of various sectors. This mutual fund was launched in 2002.
  • It consistently provided annualized returns of over 12% in the last 5 years and 25.36% since inception (11 years).
  • Crisil rated as Rank-2 and Value Research Online rated as 3-Star

5) HDFC Prudence Fund (Hybrid-Balanced category)

  • This is a hybrid mutual fund i.e. balanced mutual fund which invests up to 70% in Crisil rated large cap stocks and up to 30% in debt related investments. Due to this investment strategy, the risk would be lower compared to other equity mutual funds. This mutual fund was launched in 1994.
  • It consistently provided annualized returns of over 15% in the last 5 years and 19.3% since inception (19 years).
  • Crisil rated as Rank-3 and Value Research Online rated as 4-Star

Also read: Direct Plan Vs Regular Plan for mutual funds – Which is better

Performance of these Best Mutual Funds since Inception

5 Best Mutual Funds with solid and consistent returns in long run

Conclusion:  If you plan to invest in consistent performers, invest in these best mutual funds which provided solid returns in long run. Since these have been performing well in long run, you can invest for 10 to 15 years to get high yield.

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Suresh
5 Best Mutual Funds with solid and consistent returns in long run

Suresh KP

62 comments

  • GANESH

    Sir ,
    following are my SIP investments for the 39 months @ Rs.5000/ on each, and as per statements they are providing all are looks very good, so is it advisable to withdraw some profit now from each portfolios or to continue.
    and I am planning to do some more SIPs i.e. Rs.3000.00 x 3nos, please suggest some..

    presently having;

    01.Birla sunlife frontline equity fund-divided-regular plan
    02.DSP Black Rock Micro Cap fund-Regular plan-dividend
    03.HDFC-Top200fund-Divedend
    04. SBI magnum Equity Fund-Regular Plan-Dividend

  • Ashutosh Kumar

    I read a few of your articles and all are really good.

    Actually I am planning to invest in SIP mutual funds with a montly investment of 3000/-.
    So, please suggest me a few funds.

  • Naveen

    Sir,

    i heard about the SIP from a Magazine. i am new in share market. can you suggest me the best investment plan for a beginner. maximum amount that i can spent a month is 6000/-. 

    thanks,

    Naveen.

    • Since you are new to investment, my suggestion is to invest in balanced mutual funds to start with. 1) Invest in ICICI Balanced fund and HDFC Balanced fund. Keep some amount into recurring deposits also. 2) Once you are familar on how mutual funds operate, you can invest in large cap funds and diversified mutual funds. 3) If you can take some risk, you can invest in top 5 mid cap and small cap funds which I have recommended. But note that you should hold them for 8 to 10 years to get good returns. You can keep tracking every month on how your funds are progressing.

  • Rekha

    Hi Suresh,

    I have been investing through SIP in the following mutual funds for the past 3 years.The installment period got over for HDFC Top 200 and HDFC Equity.Can you please suggest me whether I can continue SIP on these funds.If not ,on which new fund I can start SIP.

    1)HDFC Top 200 –  Rs.1000

    2)HDFC Equity – Rs 2000

    3)ICICI Focused blue chip – 2000

    4)ICICI discovery – 2000

    Thanks,

    Rekha S

  • santhosh

    Dear Suresh Ji,

    I enquired regarding the best options that I can go for before starting SIP.First one I fixed was HDFC Midcap.But please suggest me three more funds from which I will choose.My interest is to have a mix of High risk High returns and Low risk High returns.Awaiting you soon sir.I can invest upto 3K PM for atleast 3 yrs.Please suggest me good ones sir

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