Top performing mutual funds to double your wealth over time

The Indian mutual fund industry is on a remarkable growth trajectory, with assets under management (AUM) doubling over the past five years, growing from Rs 22.26 lakh crore in 2019-20 to Rs 66.7 lakh crore in August 2024. Predictions for the year point to sustained momentum, driven by rising retail participation, favorable market conditions, and robust inflows into equity mutual funds.

Large-cap funds are expected to attract more interest as investors seek safer options amid market valuation concerns. Sectoral and thematic funds, focusing on high-growth industries like technology, healthcare, and renewable energy, are also anticipated to perform well, making mutual funds a key wealth creation tool for long-term investors.

Vivek Goel, Joint MD of Tailwind Financial Services, emphasizes the potential of these funds in achieving financial goals through disciplined investing.

“The impressive growth of mutual funds over the last decade reflects the strength of the Indian market and wealth creation opportunities available for long-term investors. Funds like Nippon India Small Cap, with a 10-year return of 23.5%, and Motilal Oswal Midcap Fund, yielding 21.6%, demonstrate the potential of small- and mid-cap investments in capturing substantial gains across market cycles. The performance also underscores the importance of efficient fund selection in achieving desired goals,” Goel says.

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“At Tailwind Financial Services, we emphasize the value of consistent returns over time, and these figures highlight our belief in mutual funds as a robust vehicle for wealth creation. With disciplined investment, a well-diversified portfolio can outperform and safeguard against volatility,” he adds.

He shares insights on the wealth creation opportunities available for long-term investors. As seen in the table below, top-performing mutual funds have delivered stellar returns over both 5 and 10-year periods, illustrating the long-term gains achievable through strategic investments.

Source: Valueresearch as of 24^th Sep 2024

All returns are for regular plan and growth option of respective schemes.