THESE 9 equity mutual funds gave over 25% annualised return in past 3 years. See list

Before you decide to invest in a mutual fund scheme, experts recommend first comparing their past returns. This gives some indication of the scheme’s future potential. Although past returns do not guarantee future returns, they are seen to be setting the tone for their future performance, thus incentivising investors to view them positively.

Additionally, evaluating a mutual fund scheme’s long-term returns (minimum 3 years) gives a fair idea of its growth potential.

Therefore, we have hand-picked a few equity mutual funds which have delivered over 25 percent annualised return in the past three years. Most of these schemes are in the small cap category, whereas a few are mid cap funds too.

For those who are not aware, the top 100 listed companies, when ranked as per their market capitalisation, are known as large-cap stocks. The next 250 are mid-cap stocks, and the companies below 250 are small caps. You can click here to see the list of securities ranked as per their market cap.

And as per Sebi’s categorisation of mutual fund schemes, mid-cap funds are supposed to invest 65% (or more) of their assets in the mid-cap securities, and small-cap funds must invest 65% (or more) in the small-cap securities.

As we can see in the list above, there are six mid cap companies which have delivered more than 25 percent annualised return in the past three years.

These include HDFC Mid cap Fund (25.98%) and Nippon India Growth Mid Cap Fund (25.15%).

As we can see in the list above, there are three small cap funds which have delivered over 25 percent annualised return. These include Bandhan Small Cap Fund (30.75%) and Invesco India Small Cap Fund (25.81%)

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.

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