A recent Wealth Conversations Report by FundsIndia highlights the remarkable performance of seven equity mutual funds that have delivered exceptional returns over the past two decades. According to the report, an initial investment of ₹1 lakh in these funds 20 years ago could have grown to over ₹10 lakh, with the leading fund turning it into an impressive ₹23.3 lakh.
Top-Performing Long-Term Mutual Funds
These seven funds span large-cap, mid-cap, and flexi-cap categories, demonstrating the potential for substantial wealth creation through sustained investment across market cycles. Here's a breakdown of the top performers:
- Nippon India Growth Mid Cap Fund: This fund led the pack, multiplying investors' money by 23.3 times over 20 years, achieving a Compound Annual Growth Rate (CAGR) of 17.1% during the period.
- HDFC Flexi Cap Fund: Coming in second, this fund grew investments by 17.8 times over two decades, with a CAGR of 15.5%.
- Franklin India Mid Cap Fund: One of two Franklin Templeton funds on the list, it multiplied wealth by 17.6 times, delivering a CAGR of 15.4%.
- Franklin India Flexi Cap Fund: Also from Franklin Templeton, this fund saw investments grow 15.7 times, with a CAGR of 14.7%.
- Aditya Birla Sun Life Flexi Cap Fund: This fund from Aditya Birla Sun Life multiplied wealth by 14.8 times over the 20-year period, with a CAGR of 14.4%.
- Aditya Birla Sun Life Large Cap Fund: Another strong performer from Aditya Birla Sun Life, it delivered 13.7 times wealth creation, achieving a CAGR of 14%.
- HDFC Large Cap Fund: Rounding out the list, this fund multiplied investors' money by 13.1 times over the past two decades, with a CAGR of 14%.
Consistency in Wealth Creation
The report emphasizes not just the high returns but also the consistent performance of these long-term mutual funds. All seven funds have demonstrated robust growth, multiplying investor wealth by more than 10 times over the last 15 years and by over five times in the last 10 years.
Nippon India Growth Mid Cap Fund particularly stood out for its sustained leadership, emerging as the biggest wealth creator across the three-year, five-year, 10-year, and 20-year periods. Franklin India Mid Cap Fund was noted as the top wealth multiplier over the last 15 years, underscoring the benefits of a disciplined, long-term investment approach in equity mutual funds.