Low-cost funds are those which generate better returns and have a low expense ratio vis-a-vis their category. Cost in a mutual fund is the total expense ratio which an investor has to bear for investing in various mutual fund schemes. Investors willing to put money in mutual funds should consider these two essential criteria - low expense ratio and high returns.
According to Amfi (Association of Mutual Funds in India) data published in February, there are currently 435 active equity mutual fund schemes across 11 categories. An analysis of Ace Equities' growth funds’ data shows that 213 schemes have completed three years or more while 58 schemes have not yet completed three years. ETMarkets brings five funds with the highest returns in the last three years along with their expense ratios.
The components of the expense ratio include the fund manager's fee, marketing and distribution expenses, legal & audit costs along with other operating costs. An expense ratio also depends upon the type of equity mutual fund scheme i.e. direct or growth plans. The former has a lower expense ratio and may vary from fund to fund and depend upon the activity in a particular fund. A more aggressively-managed fund could have a higher expense ratio.
5 low-cost large & midcap mutual funds with highest 3-year returns.
Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios:
Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.
There are 18 schemes across categories which have delivered more than 25% CAGR in the last three years and have expense ratios lower than 2. Quant Large & Mid Cap Fund(G) (27.55%) has delivered over 25% returns but its expense ratio is slightly above 2. The rest have lower than 25% returns with an expense ratio higher than 2 in many cases.
Taurus Flexi Cap Fund-Reg(G) has the highest expense ratio of 2.64 and its returns in the said period stand at 16.68%.
Also Read: Focused vs thematic funds: Who holds the edge and top 5 funds in each category
Inputs from Surbhi Khanna
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
FAQs
ELSS are tax-saving mutual funds which have a lock-in period of 3 years. The investments in these funds are eligible for deduction under Section 80C to the extent of Rs 1,50,000. In case of generic open-ended schemes, if you exit the fund within a year, you need to pay a small fee known as exit load.
Which mutual fund has the best 3 year return? ›
List Of Best Performing Mutual Funds In Last 3 Years
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
|---|
| ICICI Pru BHARAT 22 FOF | 44.13 | 100 |
| Quant Small Cap Fund | 41.9 | 1000 |
| Nippon India Small Cap Fund | 37.19 | 100 |
| HSBC Small Cap Fund | 35.24 | 500 |
1 more rowELSS are tax-saving mutual funds which have a lock-in period of 3 years. The investments in these funds are eligible for deduction under Section 80C to the extent of Rs 1,50,000. In case of generic open-ended schemes, if you exit the fund within a year, you need to pay a small fee known as exit load.
What is 3 year return in mutual funds? ›
The flexi cap scheme offered 32.74% return in the last three years. The scheme is benchmarked against Nifty 500 - TRI which gave 19.94% during the same period. Franklin India Smaller Cos Fund and HDFC Small Cap Fund gave 32.49% and 31.82% returns respectively in the said period.
Which mutual fund is giving the highest return? ›
Fund House Fund Category Fund Rank and Ratios Fund Parameters Investment Parameters Filter
| Scheme Name | Plan | 6M |
|---|
| HDFC ELSS Tax saver - Direct Plan - Growth | Direct Plan | 26.64% |
| Bank of India ELSS Tax Saver - Direct Plan - Growth | Direct Plan | 32.59% |
| Canara Robeco ELSS Tax Saver Fund - Direct Plan - Growth | Direct Plan | 20.84% |
24 more rows| Scheme Name | Current value of Rs 1 lakh invested three years ago | Three year CAGR |
|---|
| Nippon India Multi Cap Fund | 2,23,922.90 | 30.83% |
| HDFC Small Cap Fund | 2,23,780.95 | 30.80% |
| SBI Contra Fund | 2,21,662.89 | 30.39% |
| Quant ELSS Tax Saver Fund | 2,20,039.95 | 30.07% |
16 more rowsApr 10, 2024
4 equity mutual funds offered over 30% returns in 3 & 5 years
- IANS. 1/6. Top Gainers. ...
- iStock. 2/6. Nippon India Small Cap Fund. ...
- iStock. 3/6. Quant Flexi Cap Fund. ...
- Getty Images. 4/6. Quant Mid Cap Fund. ...
- iStock. 5/6. Quant Small Cap Fund. ...
- Agencies. 6/6. Interested to invest?
To redeem ELSS before three years, follow these steps:
- Check the lock-in term. Ensure that the mandatory three-year lock-in time has elapsed from the date of investment.
- Contact the fund manager. ...
- Fill out the redemption form. ...
- Submit the form and documents. ...
- Awaiting processing.
The main benefits of investing in the best mutual funds for the short term (3 years) include capital preservation, stable returns, professional management, liquidity, and diversification. These funds provide investors with an attractive investment option that balances risk and reward over a shorter time horizon.
Can I withdraw money from a mutual fund anytime? ›
Can I withdraw money from mutual funds anytime? Yes, you can withdraw money from most mutual funds anytime, unless they have a lock-in period.
Service Industry Funds
The services industry funds gave an average return of around 20.50% in the last five years. There were two funds in the category — Sundaram Services Fund and ICICI Pru Exports & Services Fund — which gave 21.38% and 19.62% returns, respectively.
How much will I get if I invest $50,000 in mutual funds? ›
Considering 8% returns, an investment of Rs 50,000 can fetch you Rs 2,33,051 in 20 years. Not suitable for long-term wealth creation or investors with a high-risk appetite.
Which bank gives the highest interest on mutual funds? ›
Among India's top high-return mutual funds are ICICI Prudential Mutual Fund, Axis Bluechip Fund, Mirae Asset Large Cap Fund, Parag Parikh Long-Term Equity, and UTI Flexi Cap Fund. These funds have a track record of delivering high returns to investors while managing risks effectively.
Which mutual fund gives 40% return? ›
There are eight large cap mutual funds which have delivered over 40 percent return in the past one year. These include Quant Large Cap Fund, Bank of India Bluechip Fund, JM Large Cap Fund and Nippon India Large Cap Fund, among others.
Which mutual fund is best for a 3 year investment? ›
If you have a 3-year investment horizon, here are some top SIP plans to consider:
- JM Flexicap Fund - Direct Plan - Growth. ...
- JM Value Fund - Direct Plan - Growth. ...
- Mahindra Manulife Mid Cap Fund - Direct Plan - Growth. ...
- Bandhan Small Cap Fund - Direct Plan - Growth. ...
- Quant ELSS Tax Saver Fund - Direct Plan - Growth.
5 Best Mutual Funds to Buy Now
| Mutual Fund | Assets Under Management | Expense Ratio |
|---|
| Vanguard Total Stock Market Index Fund (VTSAX) | $1.6 trillion | 0.04% |
| Fidelity 500 Index (FXAIX) | $512.4 billion | 0.015% |
| Fidelity ZERO International Index (FZILX) | $4 billion | 0% |
| American Funds Bond Fund of America (ABNDX) | $82.6 billion | 0.62% |
1 more rowGeneral ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%. Return on Stocks: On average, a ROI of 7% after inflation is often considered good, based on the historical returns of the market.
Which mutual fund has the highest 5 year return? ›
100 Highest 5 Year ETF Returns
| Symbol | Name | 5-Year Return |
|---|
| DXJ | WisdomTree Japan Hedged Equity Fund | 21.11% |
| MGK | Vanguard Mega Cap Growth ETF | 20.45% |
| SCHG | Schwab U.S. Large-Cap Growth ETF | 20.37% |
| PTF | Invesco Dorsey Wright Technology Momentum ETF | 20.24% |
93 more rowsTop 10 Best Mutual Funds SIP to Invest In India
- HDFC Mid-Cap Opportunities Fund.
- Parag Parikh Flexi Cap Fund.
- ICICI Pru Bluechip Fund.
- HDFC Flexi Cap Fund.
- Nippon India Small Cap Fund.
- HDFC Balanced Advantage Fund.
- ICICI Prudential Equity & Debt Fund.
- ICICI Prudential Corporate Bond Fund.
The top-performing mutual funds over the last two years include Parag Parikh Flexi Cap Fund, Mirae Asset Large & Midcap Fund, ICICI Pru Multicap Fund, Quant Active Fund, PGIM India Flexi Cap Fund, and Quant Focused Fund. These funds have shown robust returns in their respective categories.
