Top 15 Mutual Funds with 30% annualized returns in 5 years  – Should you invest or exit?

Top 15 Mutual Fund Schemes with 30 percent returns in last 5 yearsTop 15 Mutual Funds with 30% annualized returns in 5 years


SENSEX is reaching new highs. It crossed 38,000 mark last week. Many mutual fund schemes are showing high returns in this stock market boom.  Even a mutual fund scheme that was no where is showing up in top 15 mutual funds list. It is time for us to look at the Top Mutual Fund Schemes in each category to filter out good mutual fund scheme. Which are the Top 15 Mutual Funds that gave the highest returns of over 30% in the last 5 years. Should you continue to invest in such mutual fund schemes or exit them?

Also Read: 15 Best SIP Mutual Funds for 2018

How we filtered Top 15 Mutual Funds that gave 30% annualized returns in 5 years


We have filtered these top 15 mutual funds based on below parameters

1) Mutual funds are filtered across various market capitalization / categories. This includes, large cap, multi-cap, Midcap, smallcap and balanced funds.

2) We have excluded sector funds from this filter.

3) Funds that gave more than 30% returns in the last 5 years are considered irrespective of the crisil / Value research ranking.

Top 15 Mutual Funds with 30% annualized returns in 5 years  – Should you invest or exit?


Top#1 – Reliance Small Cap Fund


This is one of my favorite small cap fund in India that focuses on small cap companies for investment.

This fund gave 38% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 18% returns in the last 1 year.

Investors has been worried about Midcap and small cap stock prices fall in the last 3 months to 6 months. However, this fund has outperformed in small cap mutual fund segment in the last 1-5 years. If you are invested in this small cap mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.

Top#2 – SBI Small Cap Fund


This is another good small cap fund that focuses on investing in smaller companies.

This fund gave 36% annualized returns in the last 5 years, 19% annualized returns in the last 3 years and 24% returns in the last 1 year.

Even this fund has outperformed in small cap mutual fund segment in the last 1-5 years. If you are invested in this small cap mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.

Top#3 – Canara Robeco Emerging Equities Fund


The scheme seeks to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks.

This fund gave 34% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 16% returns in the last 1 year.

Even this fund has outperformed in large cap/mid-cap mutual fund segment in the last 3-5 years. If you are invested in this mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.

Top#4 – Mirae Asset Emerging Blue-chip Fund


To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of large cap and mid cap companies at the time of investment.

This fund gave 34% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 13% returns in the last 1 year.

Even this fund has outperformed in large cap/mid-cap mutual fund segment in the last 3-5 years. If you are invested in this mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.

Top#5 – DSP BlackRock Small Cap Fund


The aim of the fund is to seek long-term capital appreciation by investing in a portfolio that substantially constitutes of stocks of small cap companies.

This fund gave 34% annualized returns in the last 5 years, 11% annualized returns in the last 3 years and 4% returns in the last 1 year.

This fund is under performer in the last 1 year by giving very low returns. This fund size has increased so much that it has to stop the fresh investments. Now investors started moving out of this fund due to its under performance. If you have already invested in this fund, stay invested, but you may need to hold any fresh investments for some more time.

Top#6 – HSBC Small Cap Equity Fund


The scheme seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of predominantly small cap companies.

This fund gave 31% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 9% returns in the last 1 year.

This fund has under performed in the last 1 year by giving very low returns. You may review and exit such non performing mutual fund schemes.

Top#7 – L&T Midcap Fund


To generate capital appreciation by investing primarily in mid cap stocks. The Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.

This fund gave 31% annualized returns in the last 5 years, 15% annualized returns in the last 3 years and 10% returns in the last 1 year.

This fund has under performed, however, is in-line with Midcap stock performance. If you are investing in this fund, stay invested and continue to invest through SIP.

Top#8 – Principal Emerging Blue-chip Fund


The scheme seeks to achieve long term capital appreciation by investing in equity & equity related instruments of large cap & Midcap stocks.

This fund gave 31% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 15% returns in the last 1 year.

This fund has performed well in large cap / mid-cap segment. If you are already investing in this fund, continue to invest.

Top#9 – Kotak Emerging Equity Scheme Regular Plan


The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies.

This fund gave 31% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 11% returns in the last 1 year.

This fund has average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.

Top#10 – Franklin India Smaller Companies Fund


The Fund seeks to provide long-term capital appreciation by investing predominantly in small companies.

This fund gave 31% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 11% returns in the last 1 year.

This fund has been a consistent performer in the last 8-10 years. However, this fund has average performance in the small cap segment during the last 1 year. This is mainly due to fall in Midcap/small cap stocks. If you are investing in this stock, continue to invest in such consistent performers.

Top#11 – Aditya Birla Sun Life Pure Value Fund


The scheme seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy i.e buying into stocks that are trading for less than their intrinsic value – stocks that the market is undervaluing.

This fund gave 30% annualized returns in the last 5 years, 12% annualized returns in the last 3 years and 7% returns in the last 1 year.

This was one of the best value oriented mutual fund scheme earlier. However, performance in the last 1 year is below average. If you are investing in this fund, continue to invest for some more time and take a call.

Top#12 – DSP BlackRock Midcap Fund


The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.

This fund gave 30% annualized returns in the last 5 years, 12% annualized returns in the last 3 years and 12% returns in the last 1 year.

This fund has average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.

Top#13 – ICICI Prudential Midcap Fund


The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.

This fund gave 30% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 11% returns in the last 1 year.

This fund has below average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.

Top#14 – Sundaram Small Cap Fund


The scheme seeks to achieve capital appreciation by investing predominantly in diversified stocks that are generally termed as small cap stocks.

This fund gave 30% annualized returns in the last 5 years, 6% annualized returns in the last 3 years and -2% (negative) returns in the last 1 year.

This fund is under performer in the small cap segment. If you are already investing in this fund, you can review and exit such under performing funds.

Top#15 – HDFC Mid-Cap Opportunities Fund


The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.

This fund gave 30% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 12% returns in the last 1 year.

This fund has performed well in the mid-cap segment even when Midcap stocks are falling. The moderate returns in the last 2-3 years are due to under performance of Midcap segment itself. If you are already investing in this fund, you can continue to invest in such funds.

Also Read: Best Performing IT and FMCG Funds to invest

Summary of Top 15 Mutual Funds list is here


List of Top 15 Mutual Fund Schemes with 30 percent returns in last 5 years

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Suresh

Top 15 Mutual Funds with 30% annualized returns in 5 years

27 comments

  • Dhayanithy Malayalam

    Hi Suresh,

    I am currently investing 10000 as SIP every month in four mutual funds as below. I have a long term investment horizon. I have started my SIPs two years ago.

    Mirae asset emerging bluechip : 5000
    Kotak multical : 2000
    SBI Bluechip : 2000
    HDFC Hybrid Equity :1000

    I would like to understand whether my portfolio will help me achieve the necessary amount required for my daughter’s (4 years age) higher studies & marriage in long term (15 years).

    I can invest 5000 more monthly. Kindly advise me if I should start a SIP in a small cap fund to invest this amount, and if so which small cap fund would be recommended? (Reliance or DSP)

    Thank you in advance.

    • Your portfolio is good. You can continue to invest. Regd Smallcap, you can invest in Reliance Smallcap or Franklin India Smaller cos fund. However, these are high risk.

  • SONAL GARODIA

    Hi Suresh,

    DSP BlackRock Small Cap Fund is in my portfolio from your suggestions in 2017. Now if I stop it, where should I divert the SIP amount to? Which small cap fund?

    Also, I also had HDFC balanced fund which converted to HDFC hybrid EQUITY FUND, it seems to be giving negative return. My investment already stopped automatically in this fund when the SEBI changes took place. Can you advise if I should start it again or invest in a new fund?

    Rgds
    Sonal

    • Hi Sonal, You can continue DSP Blackrock Smallcap fund. Alternatively you can invest in Reliance Smallcap fund or Franklin India Smaller cos fund. HDFC Balanced fund is renamed now. You can re-invest

  • Biswanath Bandyopadhyay

    Biswanath.
    Plz offer me your guidelines whether it is right time to invest a large amt (Rs.3 Lakh) received from FD maturity during this high Sensex/Nifty condition. In my opinion Emerging Equity/Hybrid/Multi Cap MFs
    would have their NAVs high as well.
    An urgent reply would be highly solicited
    Best wishes.

  • Chris

    Sir….generally every financial expert says that we should have long term time horizon for mutual funds. The investments should be tie up with a long term goal. I agree on that. 

    I want to ask that every year there are new schemes launche in the market. The fund that was Number 1 a few years back has changed to may be number 4 or 5 after six, seven years.

    So how should we as a retail investor evaluate the need to change the mutual funds?

    If we regularly review the funds performance and they are giving standard MF returns between 12% to 16% then should we continue in the existing funds? Or should we switch to new schemes that are giving similar returns. 

    Need to understand this login from someone expert like you. thanks. 

    • Your question is valid and this is common across general investor. I feel as long as you are getting 15% to 18% returns, you don’t need to divert it. You can continue in such funds. You can also keep checking what peer funds are performing so that you don’t end up to stick to under performing fund for long term. 

  • Raj

    Hi Suresh, I have been reading your posts on investments for quite some time and it is very enlightening and helpful to understand investments. My question is, is it a good idea to invest a lumpsum like 1 or 2 lakhs in a fund and to continue with SIP in the same fund for relatively quicker asset build up, rather than starting off with small amount monthly through SIP and growing it from there?

    • Hello Raj, SIPs are good in long term as these would get adjusted with market fluctuations. Investing in lumpsum is good idea when markets are taking correction. Now markets are in boom, if thre is correction, your lumpsum value would be reduced. I advice you to invest in liquid funds or short term debt funds and do STP to diversified fund or large cap fund in 9-12 SIPs.

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