Best Performing Mutual Funds in the last 20 years
Every mutual fund expert would advise you to invest in best mutual funds for a long term of 10 years, 15 years or 20 years. There are several hundreds of mutual fund schemes in India, however, only a few are the best performers in the long run. We keep hunting for new mutual fund schemes now and then. How about checking the mutual fund schemes that were launched 20 years back and performed well since inception? Which are the Best Performing Mutual Funds in India in the last 20 years? How these 20 years mutual fund schemes performed in the last 5-10 years?
Also Read: Top 10 Best SIP Plans for 10 years to invest in India
How we filtered these Top Performing Mutual Fund schemes in the last 20 years?
Here are the criteria we have used.
1) We filtered mutual fund scheme that was launched prior to 2000 year. Such funds would have almost completed 20 years.
2) Any mutual fund scheme that was there 20 years back and has performed well and gave over 12% annualized return since inception is part of this list.
3) We have not applied any further filter of ranking nor AUM Size.
10 Best Performing Mutual Funds in the last 20 years
Now, let us review these best performing mutual funds in India in the last 20 years, our view and whether you should continue to invest in them or not.
#1 – Franklin India Taxshield Fund
Fund Objective
The MF scheme seeks medium to long term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.
Fund Performance and Risk Ratios
This fund has outperformed and gave 21% annualized return since inception, 13% annualized returns in the last 10 years, 7% annualized returns in the last 5 years, 4% annualized returns in the last 3 years and 7% negative returns in the last 1 year. Mutual Fund returns for 10 years is the highest for this fund.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 17.3 Lakhs.
It has a low beta of 0.85 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Best Performing Mutual Funds from ELSS category that gave the highest returns since inception of over 20 years. Value Research rates this as a 3 Star (3 out of 5). If you are investing in this fund, you can continue to invest.
#2 – Franklin India Prima Fund
Fund Objective
This fund’s objective to provide medium to long term capital appreciation as a primary objective and income as a secondary objective.
Fund Performance and Risk Ratios
This fund has outperformed and gave 19% annualized return since inception, 15% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 4% annualized returns in the last 3 years and 7% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 25 Lakhs. This is one of the highest return mutual funds that gave highest SIP returns in the last 20 years.
It has a low beta of 0.76 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Best Mutual Funds for 2019 from Midcap segment that gave the 2nd highest returns of 19% annualized returns since inception of over 20 years. Value Research rates this as a 4 Star (4 out of 5). If you are investing in this fund, you can continue to invest.
#3 – ICICI Prudential Long Term Equity Fund (Tax Saving)
Fund Objective
The scheme seeks long-term capital appreciation by investing approximately 90 per cent of the investment in equity instruments, while the balance 10 per cent would be a parked in debt and money market instrument and cash (Including-money at call).
Fund Performance and Risk Ratios
This fund has outperformed and gave 19% annualized return since inception, 13% annualized returns in the last 10 years, 6% annualized returns in the last 5 years, 5% annualized returns in the last 3 years and 7% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 20.3 Lakhs.
It has a low beta of 0.84 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Best Mutual Funds for 2019 from ELSS category that gave the 3rd highest annualized returns of 19% since inception of over 20 years. Value Research rates this as a 3 Star (3 out of 5). If you are investing in this fund, you can continue to invest.
#4 – Aditya Birla Sun Life MNC Fund
Fund Objective
The scheme would invest exclusively in securities of multinational companies in order to achieve long term growth of capital at relatively moderate levels of risk. A portion of the fund will also be invested in IPO and other primary market offerings.
Fund Performance and Risk Ratios
This fund has outperformed and gave 18% annualized returns since inception, 17% annualized returns in the last 10 years, 11% annualized returns in the last 5 years, 5% annualized returns in the last 3 years and 7% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 20.6 Lakhs. This is best return fund that gave highest SIP returns.
It has a low beta of 0.78 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Top Performing Mutual Funds from MNC segment that gave the 4th highest returns of 18% since inception of over 25 years. If you are investing in this fund, you can continue to invest.
#5 – Tata India Tax Savings Fund
Fund Objective
The scheme seeks long-term capital growth. Investments in equity would be at least 80 per cent of the corpus, while allocation to debt and money market instruments can go up to 20 per cent.
Fund Performance and Risk Ratios
This fund has outperformed and gave 18% annualized returns since inception, 13% annualized returns in the last 10 years, 10% annualized returns in the last 5 years, 7% annualized returns in the last 3 years and 1% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 15.5 Lakhs.
It has a beta of 1.06 that indicates that this mutual fund has a little high volatility compared to the benchmark.
Our View: This is one of the Best Performing ELSS Mutual Funds that gave the 5th highest returns of 18% since inception of over 24 years. If you are investing in this fund, you can continue to invest.
#6 – Franklin India Technology Fund
Fund Objective
The scheme seeks long-term capital growth. Investments in equity would be at least 80 per cent of the corpus, while allocation to debt and money market instruments can go up to 20%.
Fund Performance and Risk Ratios
This fund has outperformed and gave 18% annualized return since inception, 13% annualized returns in the last 10 years, 8% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 3% negative returns in the last 1 year. Mutual Fund returns for 3 years for this scheme is highest among these 10 top performing mutual funds.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 10.8 Lakhs.
It has a low beta of 0.62 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Best Performing Technology Mutual Funds that gave the 6th highest returns of 18% since inception of over 22 years. One should note that this is Sector based mutual funds and you need to to review this every quarter and in case of any down trend in this sector, you need to review and exit. If you are currently investing in this fund, you can continue to invest.
#7 – UTI MNC Fund
Fund Objective
The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related securities of multinational companies.
Fund Performance and Risk Ratios
This fund has outperformed and gave 16% annualized returns since inception, 15% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 4% annualized returns in the last 3 years and 11% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 15 Lakhs.
It has a low beta of 0.77 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: Though this fund has performed well in the last 22 years, this is under performer in the last 3-5 years. It had a pathetic performance in the last 2-3 cycles where stock markets were down. This indicates that this fund is unable to sustain any downfall. If you are investing in this fund, you need to review and exit such mutual fund scheme.
#8 – ICICI Prudential FMCG Fund
Fund Objective
The MF scheme seeks to generate long-term capital appreciation through investments predominantly in equity and related securities of FMCG companies. Around 90 per cent of the corpus would be invested in the equities of FMCG companies, with the balance 10 per cent invested in the debt and money market instruments.
Fund Performance and Risk Ratios
This fund has outperformed and gave 16% annualized returns since inception, 17% annualized returns in the last 10 years, 11% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 3% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 22 Lakhs. This is one of the highest return mutual funds that gave 2nd highest SIP returns in the last 20 years.
It has a low beta of 0.81 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Best Performing Mutual Funds in India in the last 5 years to 20 years. This gave the 8th highest returns of 16% since inception of over 20 years. There are some rumors that we would be seeing FMCG sector going down in the coming years. I would personally feel that FMCG has been an evergreen sector and this would continue in future too. One can invest a small portion in such sector mutual funds.
#9 – SBI Large & Midcap Fund
Fund Objective
The scheme seeks long-term capital growth. Investments in equity would be at least 80 per cent of the corpus, while allocation to debt and money market instruments can go up to 20%.
Fund Performance and Risk Ratios
This fund has outperformed and gave 14% annualized return since inception, 12% annualized returns in the last 10 years, 8% annualized returns in the last 5 years, 5% annualized returns in the last 3 years and 5% negative returns in the last 1 year.
Since another mutual fund got merged with this fund, SIP returns details are not available.
It has a low beta of 0.95 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: This is one of the Top Performing Mutual Funds from Large Cap-Midcap segment that gave the 9th highest returns of 14% since inception of over 25 years. If you are investing in this fund, you can continue to invest.
#10 – HDFC Capital Builder Value Fund
Fund Objective
The MF scheme seeks to achieve capital appreciation/income in the long term by primarily investing in undervalued stocks.
Fund Performance and Risk Ratios
This fund has outperformed and gave 14% annualized returns since inception, 12% annualized returns in the last 10 years, 7% annualized returns in the last 5 years, 5% annualized returns in the last 3 years and 13% negative returns in the last 1 year.
If you would have invested ₹ 1,000 per month in the last 20 years, your investment would have been ₹ 240,000 (₹ 1,000 x 240 months) and your investment would have now grown to ₹ 18 Lakhs.
It has a low beta of 0.55 that indicates that this mutual fund has less volatility compared to the benchmark.
Our View: Though this fund has performed well in the last 25 years, this is under performer in the last 3-5 years. It had a pathetic performance in the last 2-3 cycles where stock markets have taken correction. This indicates that this fund’s portfolio is unable to bear, the stock market corrections. If you are investing in this fund, you need to review and exit this value based mutual fund scheme.
You may like: Top 5 Mutual Funds to invest through SIP
List of Best Performing Mutual Funds in the last 20 years
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Suresh KP
Best Performing Mutual Funds in the last 20 years
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superb article sir. Please suggest best mutual funds for 2025-year for long term minimum 10 years period sir.
Please wait for next few days, I would be suggeting few funds for 2025 to invest for long term.
Excellent article. Can you advise on funds to invest into for min of 10 years (sip) with min. annual return of 10%-12% .
Thank you,
Bhavin
Dear Bhavin, Thanks for the comments. Mutual Fund returns are not guaranteed. However one can diversify their portfolio by adding largecap, balanced, midcap and smallcap funds to get maximum returns. Pls refer this article where we recommended top 10 funds from all these categories. https://myinvestmentideas.com/2019/12/best-sip-mutual-fund-plans-to-invest-in-2020/
Dear sir,
Could you please advise on best mutual funds from lump-sum investment purpose for 5 years to 10 years view. Thanks
Hello Dilip, I need to do some research on this. can you pls post this on suggest a topic so that I can review next week for sure?
Done Sir.
Excellent article. Very useful for me. Kindly publish good retirement fund
sure Kannan.