Mutual funds have increasingly become a preferred choice for investors looking for long-term wealth creation. In particular, equity mutual funds have stood out by delivering impressive returns over the past five years. Compared to direct stock market investing, mutual funds carry relatively lower risk thanks to diversification and professional fund management.
Power of Compounding - Returns are reinvested year after year, creating exponential wealth growth.
Risk Diversification - Fund managers spread investments across multiple sectors and companies to balance risk.
Wealth Creation Over Time - While short-term performance may fluctuate, 5-10 years of disciplined investing has proven to multiply wealth significantly.
Based on market research, certain equity schemes have delivered 30-35% CAGR (Compounded Annual Growth Rate) in just five years. To put it simply, an investment of ₹1 lakh in these funds has grown to nearly ₹4 lakh.
Quant Active Fund
ICICI Prudential Technology Fund
HDFC Flexi Cap Fund
SBI Small Cap Fund
Axis Midcap Fund
(Disclaimer: The above list is illustrative. Investors should verify the latest performance data on AMFI or fund house websites before making decisions.)
Do not rely only on past returns; consider risk profile, fund manager's experience, and category.
Use SIP (Systematic Investment Plan) instead of lump sum to manage market volatility.
Always seek advice from a financial expert before investing.