These seven value mutual funds beat benchmark index in past 10 years. Should you invest? | Mint (2024)

FAQs

Which mutual fund is best in the last 10 years? ›

Fidelity Contrafund (FCNTX)

Originally a contrarian-styled fund, FCNTX has evolved over the years to adopt a growth investing strategy. Over the last 10 years, this fund has strongly outperformed its benchmark, the S&P 500, with an annualized 14.9% total return versus 12.9%.

SBI BlueChip Fund, a prominent large cap fund, gave 16.63% return in the said period against 17.94% by its benchmark (BSE 100 - TRI). Kotak Emerging Equity Fund, the second largest mid cap fund based on assets managed, gave 25.59% return against 29.14% by its benchmark (Nifty Midcap 150 - TRI).

Mutual Funds over a long period of time, have given about 12% year on year Returns. So if we consider thousand investment for 10 years, here are your numbers: Invested amount will be 1,20,000. If we expect 12% Returns you are returns will be 1,12,339.

Mutual funds have historically averaged annual returns of 9–12%, but these returns are subject to market volatility and can vary by category. For example, in India, the average 10-year return for mutual funds is 20%.

If you want to invest successfully, one of your best options is to stick with the S&P 500. But what if you want even more growth? The Vanguard Small-Cap ETF (NYSEMKT: VB) could be your best bet.

Vanguard Growth & Income Fund (VGIAX)

VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023. Over the past 10 years, this fund's average annual return beats the S&P 500's by a nose.

Scale Performance of the Fund Against the Benchmark

Well, the first thing is to analyze the performance of the benchmark. I am sure that you are aware that every fund has a benchmark that is used to track and measure its performance. A good mutual fund is one that constantly beats its benchmark in the long term.

Which mutual fund is best currently? ›

A good benchmark should correspond to the investment style of an investor and the expected returns from the portfolio. It means that certain benchmarks will be appropriate for certain portfolios, while, at the same time, being inappropriate for other portfolios.

No. 1 on the list is the ProFunds Semiconductor UltraSector Fund, which yielded 29.21% over the past decade. In second place is the Direxion Monthly NASDAQ-100 Bull 1.75X Fund, with 28.16%. And the bronze medal goes to the Rydex NASDAQ-100 2x Strategy Fund, which yielded 26.58%.

Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.

Other mutual fund schemes which gave over 20 percent return in the past half a decade include Aditya Birla Sun Life Flexi Cap Fund, DSP Flexi Cap Fund, Franklin India Flexi Cap Fund, HSBC Flexi Cap Fund and Parag Parikh Flexi Cap Fund.