Stable Investor: Top 10 Mutual Funds in India
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Top 10 Mutual Funds in India Do you know how many mutual fund schemes operate in India? More than 500... Suppose you plan to invest in some good mutual fund schemes. Assuming you are an average investor like us, how would you select a scheme from 500+ available ones? One approach can be to choose funds which have consistently given high returns in long term. For example, we choose a period of 10 years. Why 10 years? It's because it would cover multiple business cycles and is long enough to judge a fund’s true performance. In our case, 10 years would cover the period 2002-2012. This decade witnessed the great Indian Bull run (2003-2008), the great fall (2008-2009) and rally from the lows (2009-2011).
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We started with funds which have been operational for more than 10 years. Then we sorted them on basis of returns (CAGR). We then came up with a list of top 10 mutual fund schemes, which have given the highest returns in last 10 years. Caution – A fund’s past performance is no guarantee of future performance. I repeat. A fund’s past performance is no guarantee of future performance. Don’t forget this. :) So here are India’s top 10 Mutual Funds –
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These funds have given returns of around 30% + for 10 years. And that is huge. To better understand the enormity of these returns, assume you invested Rs 10,000 in all ten funds at start of 2002. The value of that investment (if not withdrawn), now stands as given in table below.
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http://www.stableinvestor.com/2012/11/top-10-mutual-funds-india.html
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Stable Investor: Top 10 Mutual Funds in India
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__________________________________ An investment of just Rs 10,000 in Reliance Growth Fund turned into a mind boggling Rs 1,73,448 in just 10 years! A similar deposit in bank fixed deposits (@8%) would have just given Rs 21,600.
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One of the most common questions from mutual fund investors is about ‘the’ best mutual fund to start a Systematic Investment Plan (SIP). The answer is that we don't know. We don't know which fund would perform the best in coming years. But what we feel is that a long term investor would be better off following a core satellite approach (similar to one suggested in our Dead Monk’s Portfolio).
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We would take up the MF-Core-Satellite discussion in another post. For the time being, we leave you with few initial suggestions: 4
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• Start with 2-3 Index Funds as the Core of your MF portfolio. (Why Index Funds?) • Add smaller SIPs in 2-4 Non-Index funds (You may choose between large cap, mid cap, small cap or multi cap funds, depending on your risk appetite) as Satellites of the Core.
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• While CORE would provide stability to entire portfolio, SATELLITEs having comparatively riskier funds, would have potential for higher returns. Allocation between the two components would depend on investor’s risk appetite. Note to Regular Investor – If you are familiar with SIPs and MFs, you might like to read an old post on How to boost your SIP Returns. __________ पसंद कर 6 लोग को यह पसंद है.
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The return value hypothesis assume you selected top 10 funds of decade in year 2012 (rear view mirror driving). can you the data from year 1992 to 2002 and see what all top 10 mutual funds were in that period and then invest in only from those top 10 funds. Finally compare those returns with your current returns ? As that will be correct way of comparison. May be many good mutual funds i your list do not exists at all before year 2000. •
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We would have loved to do that for all the 10 funds. But as you rightly mentioned, many of these did not exist during 1992-2002. But we will find the data for those which existed and try doing a post on same. Thanks for the interesting approach. •
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I do SIP in 3 of the above mentioned funds....not bad ;) •
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@equity.philip9876.com That us nice. We hope you started the SIPs long time back and not near 2007-08 :) •
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I started in 2005.
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Stable Investor: Top 10 Mutual Funds in India
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