23 mutual fund schemes tripled investors’ money in five years

Every mutual fund investor wants to multiply wealth. That too, in the shortest period. Is it possible? Can equity mutual fund schemes help them multiply wealth in a period of, say, five years? Here is the scoop. In fact, 23 equity mutual fund schemes tripled investors wealth in a period of five years.

Our research focused on diversified equity funds, including largecap, midcap and multicap schemes. We did not include smallcap schemes as they typically manage the feat easily. We also excluded ELSS schemes and sectoral schemes because they cater to different needs. We looked at open-ended schemes, their regular plan with the growth option. Next, we took out the schemes’ five year absolute returns starting from May 2013.

We found 17 out of 25 midcap schemes managed to triple the invested sum in the five-year period. Canara Robeco Emerging Equities Fund topped the list with an absolute return of 290 per cent. In other words, if an investor had invested Rs 1 lakh in the scheme in May 2013, s/he would have amassed Rs 3,90,000 rupees at the end of April 2018.

Five multicap schemes and a largecap scheme also made it to the list. See table below for the schemes.

In the same time period, the benchmark index, S&P BSE Sensex, generated a 78 per cent return and BSE Midcap index gave 166 per cent return. The data clearly shows how a fund manager’s expertise can add extra to the returns.