Mutual Funds perform well in the medium to long term. Do you know that there are several top performing mutual funds in the last 15-20 years. While the direct plan in mutual funds started from 2013 onwards, it is worth checking how mutual funds performed in the last 15 years which would have gone through various market cycles. In this article, we would provide 5 mutual fund schemes that yielded returns between 2.460% and 3,300% in the last 15-Years from 13-Feb-2009 to 14-Feb-2024. Note that the performance pertains to regular funds as direct funds were not existing during that period.
5 Mutual Fund Schemes with 15-Year Returns between 2,460% to 3,300%
Earlier we have written 5 mutual fund schemes with 10 year return of 920% to 1250% and we are continuing this series now.
Here is the list of 5 Top Performing Mutual Funds in the last 15-Years that generated over 2,460% returns.
#1 – DSP Small Cap Fund – 15-Year Returns: 3,300%
#2 – HDFC Mid-cap Opportunities Fund – 15-Year Returns: 2,635%
#3 – Franklin India Smaller Companies Fund – 15-Year Returns: 2,630%
#4 – Canara Robeco Emerging Equities Fund – 15-Year Returns: 2,550%
#5 – Edelweiss Mid Cap Fund – 15-Year Returns: 2,460%
Note: ETFs are excluded when filtering these funds. We also ignored funds that got merged which might not have relevance in terms of historical returns.
What is Mean Return, Standard Deviation, Sharpe, Sortino, Beta and Alpha in mutual funds?
We have used these metrics in the article, hence providing detailed definitions for investors to understand them. You can skip this section if you are already aware of them.
- Mean Return: The mean return, often simply referred to as the average return, is a key measure used to evaluate the historical performance of mutual funds. It represents the average rate of return that the mutual fund has generated over a specific period, such as a year, several years, or since inception
- Standard Deviation: It is a measure of the volatility or risk associated with the returns of the fund over a certain period of time. It indicates how much the returns of the mutual fund have deviated from its average return.
- Sharpe: The Sharpe ratio is a measure used to evaluate the risk-adjusted returns of an investment or a portfolio, including mutual funds. It was developed by Nobel laureate William F. Sharpe
- Sortino: The Sortino ratio is a variation of the Sharpe ratio, which measures the risk-adjusted return of an investment, including mutual funds. However, the Sortino ratio focuses only on the downside risk, specifically the standard deviation of negative returns, unlike the Sharpe ratio, which considers the standard deviation of total returns.
- Beta – It is a measure of the fund’s sensitivity to the market movement. Beta of less than 1 indicates that the fund would have lower swing compared to the ups and downs of the benchmark. Beta of more than 1 indicates that the fund would have wider swings compared to the benchmark. Investors should prefer lower beta funds which can have lesser swings compared to the benchmark.
- Alpha – It is a measure of extra returns provided by the fund compared to the benchmark. Investors should prefer high alpha funds which can generate higher returns. One should use Alpha and Beta together which goes hand in hand when comparing between risk and returns.
5 Mutual Fund Schemes with 15-Year Return Over 2,460% – Investment Objective and Performance Details
Let’s get into more information about these funds.
#1 – DSP Small Cap Fund – 15-Year Returns: 3,300%
Investment Objective:
The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small cap companies.
Performance Details
Absolute Returns of the fund (Regular Plans)
- 1-Year Return: 46%
- 2-Year Return: 52%
- 3-Year Return: 115%
- 5-Year Return: 228%
- 10-Year Return: 810%
- 15-Year Return: 3,300% (1 Lac would have turned to 34.3 Lacs)
Annualised Returns of the fund (Regular Plans)
- 1-Year Return: 46%
- 2-Year Annualised Return: 23%
- 3-Year Annualised Return: 29%
- 5-Year Annualised Return: 27%
- 5-Year Annualised Return: 25%
- 15-Year Annualised Return: 26.1%
Risk Metrics
- Mean Return: 29.8 (average return generated based on last 3 years monthly returns)
- Standard Deviation: 15.9 (Higher the Standard deviation, higher volatility)
- Sharpe: 1.57 (excess returns generated compared to total risk)
- Sortino: 2.55 (higher ratio compared to peers and is a better risk adjusted performance)
- Beta: 0.85 (Swings compared to benchmarks, < 1 is better)
- Alpha: 2.15 (returns compared to benchmark, higher than 1 is better)
Our View:
Like I indicated in our earlier articles, small cap funds invest in small cap companies and are high risk. Such funds would reward with high returns too. This fund has been a consistent performer that has generated 18.2% annualised returns since inception. High risk investors can make such funds as part of their mutual fund portfolios for medium to long term perspective. Moderate or low risk investors can avoid such funds.
#2 – HDFC Mid-cap Opportunities Fund – 15-Year Returns: 2,635%
Investment Objective:
HDFC Mid Cap Fund aims to achieve long-term wealth creation. The Fund’s investment objective is to generate long-term capital growth by investment in prominent mid-cap companies. The fund objective is to generate alpha through judicious mid-cap stock selection.
Performance Details
Absolute Returns of the fund (Regular Plans)
- 1-Year Return: 54%
- 2-Year Return: 76%
- 3-Year Return: 118%
- 5-Year Return: 210%
- 10-Year Return: 670%
- 15-Year Return: 2,635% (1 Lac would have turned to 27.3 Lacs)
Annualised Returns of the fund (Regular Plans)
- 1-Year Return: 54%
- 2-Year Annualised Return: 33%
- 3-Year Annualised Return: 30%
- 5-Year Annualised Return: 25%
- 10-Year Annualised Return: 22%
- 15-Year Annualised Return: 24.3%
Risk Metrics
- Mean Return: 30.2 (average return generated based on last 3 years monthly returns)
- Standard Deviation: 14 (Higher the Standard deviation, higher volatility)
- Sharpe: 1.8 (excess returns generated compared to total risk)
- Sortino: 2.9 (higher ratio compared to peers and is a better risk adjusted performance)
- Beta: 0.9 (Swings compared to benchmark; < 1 is better)
- Alpha: 3.51 (returns compared to benchmark; higher than 1 is better)
Our View:
Midcap mutual funds invests in mid-sized companies and are high risk. However, such funds are rewarded with higher returns too. This fund has been a consistent performer that has generated 18% annualised returns since inception. If you are a high risk investor, you can make such funds as part of your mutual fund portfolios for medium to long term perspective.
Also Read: 5 Top Performing Funds with 5 Year Returns between 260% to 380%
#3 – Franklin India Smaller Companies Fund – 15-Year Returns: 2,630%
Investment Objective:
The Fund seeks to provide long-term capital appreciation by investing predominantly in small companies.
Performance Details
Absolute Returns of the fund (Regular Plans)
- 1-Year Return: 55%
- 2-Year Return: 70%
- 3-Year Return: 128%
- 5-Year Return: 200%
- 10-Year Return: 690%
- 15-Year Return: 2,630% (1 Lac would have turned to 27.3 Lacs)
Annualised Returns of the fund (Regular Plans)
- 1-Year Return: 55%
- 2-Year Annualised Return: 30%
- 3-Year Annualised Return: 31%
- 5-Year Annualised Return: 24%
- 10-Year Annualised Return: 23%
- 15-Year Annualised Return: 24.3%
Risk Metrics
- Mean Return: 32.2 (average return generated based on last 3 years monthly returns)
- Standard Deviation: 14.7 (Higher the Standard deviation, higher volatility)
- Sharpe: 1.86 (excess returns generated compared to total risk)
- Sortino: 2.82 (higher ratio compared to peers and is a better risk adjusted performance)
- Beta: 0.77 (Swings compared to benchmark, < 1 is better)
- Alpha: 6.71 (returns compared to benchmark, higher than 1 is better)
Our View:
Like I indicated in our earlier articles, small cap funds invest in small cap companies and are high risk. Such funds are rewarded with higher returns too. This fund has been a consistent performer that has generated 16.1% annualised returns since inception. High risk investors can make such funds as part of their mutual fund portfolios for medium to long term perspective. Moderate or low risk investors can avoid such funds.
#4 – Canara Robeco Emerging Equities Fund – 15-Year Returns: 2,550%
Investment Objective:
The fund aims to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks
Performance Details
Absolute Returns of the fund (Regular Plans)
- 1-Year Return: 27%
- 2-Year Return: 30%
- 3-Year Return: 55%
- 5-Year Return: 135%
- 10-Year Return: 650%
- 15-Year Return: 2,550% (1 Lac would have turned to 26.5 Lacs)
Annualised Returns of the fund (Regular Plans)
- 1-Year Return: 27%
- 2-Year Annualised Return: 14%
- 3-Year Annualised Return: 16%
- 5-Year Annualised Return: 18%
- 10-Year Annualised Return: 22%
- 15-Year Annualised Return: 24.1%
Risk Metrics
- Mean Return: 18.7 (average return generated based on last 3 years monthly returns)
- Standard Deviation: 12.8 (Higher the Standard deviation, higher volatility)
- Sharpe: 1.07 (excess returns generated compared to total risk)
- Sortino: 2.1 (higher ratio compared to peers and is a better risk adjusted performance)
- Beta: 0.89 (Swings compared to benchmark; < 1 is better)
- Alpha: 0.34 (returns compared to benchmark; higher than 1 is better)
Our View:
This is a Large-Midcap fund that invests in large cap stocks and mid-sized companies. Since it invests in midcap stocks component it is categorised as high risk. Such funds are rewarded with good returns too. This fund has been a consistent performer that has generated 17.3% annualised returns since inception. High risk investors can invest in such funds for medium to long term perspective.
You may like: 5 Mutual Funds with 3 Year Returns of 160% to 215%
#5 – Edelweiss Mid Cap Fund – 15-Year Returns: 2,460%
Investment Objective:
The investment objective is to seek to generate long-term capital appreciation from a portfolio that predominantly invests in equity and equity-related securities of Mid Cap companies.
Performance Details
Absolute Returns of the fund (Regular Plans)
- 1-Year Return: 48%
- 2-Year Return: 60%
- 3-Year Return: 98%
- 5-Year Return: 213%
- 10-Year Return: 715%
- 15-Year Return: 2,460% (1 Lac would have turned to 25.46 Lacs)
Annualised Returns of the fund (Regular Plans)
- 1-Year Return: 48%
- 2-Year Annualised Return: 26%
- 3-Year Annualised Return: 25%
- 5-Year Annualised Return: 25%
- 10-Year Annualised Return: 23%
- 15-Year Annualised Return: 23.7%
Risk Metrics
- Mean Return: 27.4 (average return generated based on last 3 years monthly returns)
- Standard Deviation: 15.07 (Higher the Standard deviation, higher volatility)
- Sharpe: 1.49 (excess returns generated compared to total risk)
- Sortino: 2.91 (higher ratio compared to peers and is a better risk adjusted performance)
- Beta: 0.96 (Swings compared to benchmark; < 1 is better)
- Alpha: minus 0.67 (returns compared to benchmark; higher than 1 is better)
Our View:
Like I indicated earlier, Midcap mutual funds invest in mid-sized companies and are high risk, however, rewarded with high returns. This fund has been a consistent performer that has generated 13.45% annualised returns since inception. High risk investors can invest in such funds for medium to long term tenure.
Conclusion: In summary, the mutual fund schemes highlighted in this article have generated superior performance over the past fifteen years. This could be attributable to bull run in the last 1 year. However, small cap funds or midcap funds are highly volatile and hence high risk. Investors should carefully assess their risk tolerance, investment goals, and time horizon before considering any of these funds.
