Equity mutual funds have done very well in the last few years. The sharp run-up in stocks in the last 1 year has ensured that returns are strong for investors. More and more investors are now flocking to equity mutual fund schemes. Here are 7-equity mutual funds that have given the best returns over 5-years. We have avoided taking the same fund, with a different plan for example, we have mostly considered direct and not regular. Also, if it is the same fund, we may have not chosen it again, based on payout, if growth has been considered. The objective was to take a different set of funds. All of the funds are based on rankings from Morningstar.
Tata Digital India Fund - Direct Plan
According to data from top research firm, Morningstar, Tata Digital India Fund, Direct Plan growth has given a returns of 26.81% on an annualized basis and this is the best among equity mutual funds over a 5-year period. The 3-year returns is even better at 31.79% on an annualized basis. We are in no way recommending any of the schemes, but, are just providing readers with information on the best returns provided over the 5-year period.
Tata Digital India Fund - Direct Plan has investment largely in IT companies and its portfolio comprises names like TCS, Infosys, HCL Technologies, Persistent Systems etc. The scheme looks for long term capital appreciation by investing at least 80% of its net assets in equity or related instruments.
ICICI Prudential Technology Fund Direct Plan
This fund is another technology fund and has given returns of 26.80% over 5-years. As per data from Morningstar, this makes it the second highest returns from equity mutual funds over a 5-year period. The fund pre-dominantly invests in equities and has holdings in names like Infosys, TCS etc.
The net asset value under the growth plan is Rs 138.62 and investment in the scheme is also possible by way of SIPs. The 3-year returns from the fund is around that 34% mark.
Aditya Birla Sun Life Digital India Fund - Direct Plan
This fund has generated the third highest returns among equity mutual funds over a 5-year period according to data by Morningstar. Again, like the two of the above, most of the funds are parked in IT stocks. Since stocks from the IT sectors have rallied tremendously in the last 5-years, we are seeing solid robust returns of 26.77% from the fund over a 5-year period. The returns over three years has also been staggering at 33.82% on an annualized basis. The net asset value under the growth plan is Rs 122.38, and one can invest through SIPs with a small sum of Rs 500 every month.
Edelweiss Greater China Equity Off-shore Fund, Direct plan
With a returns of 25.86%, this makes it the fourth best fund in terms of returns over 5-years. This scheme invests in JPMorgan Funds - JF Greater China Equity Fund, an equity fund which invests primarily in a portfolio of companies which have their registered office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.
The NAV under the scheme is Rs 59.33. An SIP is also possible in the fund with an investment of Rs 500 each month.
Franklin India Feeder Franklin US Opportunities Fund
This fund is ranked fifth over 5-year returns. The fund seeks to provide capital appreciation by investing predominantly in units of Franklin U.S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America.
The fund has generated a returns of 25.70% on an annualized basis over the last 5-years, while the 3-year returns have been 26.60% on an annualized basis.
The growth plan of the fund currently has an NAV of Rs 58.34.
Quant Tax Plan Growth, Direct Plan
This fund has generated a 5-year annualized returns of 24.62% . The Quant Tax Plan Growth offers tax benefits under SEC80C of the Income Tax Act. The fund has investment in stocks like ITC, ICICI Bank, Bhrati Airtel, State Bank of India, ICICI Securities etc.
An SIP under the fund is possible with an investment of as low as Rs 500 each month. The net asset value under the growth category is Rs 210.68.
This fund is suitable for those who are looking for tax benefits and long term returns.
SBI Technology Opportunities Fund - Direct Plan
Again, this is a technology fund, which falls under the highest returns category and occupies the seventh position for returns over a period of 5-years. SBI Technology Opportunities Fund - Direct Plan has given returns of 24.28% over the last 5-years. While some of these stocks may have given the best returns, we are just providing information and are not suggesting to invest.
We believe that the Sensex at 53,000 points is over valued and any sharp dips would be an opportunity to park money in equity mutual funds, not at the moment.
Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.