After the incredible growth of mutual funds since 2009, the average Indian who was inclined to invest in FD and PPF has changed his/her preference. Today, people who want to meet their long and short-term goals invest in mutual funds. But have you wondered why MFs are so popular?

The reasons are simple. Firstly, because they give higher returns with relatively lower risk. Secondly, because there are various categories and funds to choose from as per your financial goals. Investing in mutual funds is like going to a shopping mall. There is a shop that will meet everyone’s expectations!

Mutual funds (MFs) are liquid in nature and these funds are professionally managed, as opposed to direct stocks. I’m sure if you are a seasoned investor, you will be aware of most of the funds that have given good returns over the years. But not many know that there are lesser-known funds that have been giving amazing returns. These funds might belong to a lesser known AMC or may have a smaller AUM.

In this article, we will check out 10 lesser-known mutual funds that can give you handsome returns! So, let’s begin.

1. Indiabulls Bluechip Fund (Large-Cap Fund)

This fund, although underrated, has outperformed its benchmark index and has given a return of 10.79% since its launch.

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Returns

As of December 3th, 2018

2. Kotak Emerging Equity Scheme

This mid-cap mutual fund was launched on January 1st, 2013. This fund provides a moderately high risk and has given a return of 25.6% since its launch.

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Returns

As of December 3th, 2018

3. Invesco India Mid Cap Fund (Midcap)

Another top fund in the mid-cap category, this fund has given an exceptional return in the last 5 years. It has given a return of 14.25%, since its launch.

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Returns

As of December 3th, 2018

4. Sundaram Mid Cap Fund – Direct – Growth

This is again a good mid-cap fund to invest in and what’s more, you can invest in this fund with a minimum SIP of just Rs 250.

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Returns

As of December 3th, 2018

5. L&T Emerging Businesses Fund (Small cap)

This is relatively new to the category but has been slowly emerging to be one of the best small-cap funds.

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Returns

As of December 3th, 2018

6. Parag Parikh Long Term Equity Fund (Multi- Cap Fund)

This is a multi-cap mutual fund which invests in foreign securities as well. This fund has given a return of 17.36% since its launch and is slowly gaining emergence among investors. This is the only fund as of now which invests in the stocks of top-notch international companies like Facebook, Google, Suzuki, among others.

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Returns

As of December 3th, 2018

7. Motilal Oswal Long Term Equity Fund (ELSS)

This ELSS fund has given a return of 15.5% which is quite competitive. This mutual fund is ideal for investors who are looking to invest for a term of 4-5 years and save tax with it too.

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Returns

As of December 3th, 2018

8. Principal Hybrid Equity Fund (Hybrid Aggressive Fund)

The fund has given a return of 11.25% since its launch and has consistently outperformed its benchmark.

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Returns

As of December 3th, 2018

9. Tata Liquid Fund (Liquid)

This is a competent liquid fund, which has given stable returns over the years. Its returns since launch is 8.17%. Although, many of you may think 8.17% is not a great rate of return, but compare it to keeping it in FD’s or saving banks where you can just get returns of 3.5% to 6%. Liquid funds tend to be a much better alternative for short-term investment. Plus, it’s healthy to have a diverse portfolio!

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Returns

As of December 3th, 2018

10. DSP Bond Fund (Medium-duration debt)

Another good debt-oriented fund, it has given a return of 8.11% and has outperformed its benchmark time and again.

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Returns

As of December 3th, 2018

Conclusion

Now that you have a healthy idea about the performance of various little-known mutual funds, you can try to diversify your portfolio, by investing in these funds.

You need to remember that it’s not always the AMC that defines the performance of the fund. It depends on a number of factors and as an investor, you must be very careful, while making your decision.

(By Harsh Jain, Co-founder & COO, Groww.in)

(Disclaimer: These mutual funds have been recommended by Groww.in. Although due care may have been exercised by them while selecting these funds, readers are advised to consult their financial adviser before investing in any of these funds.)