Top 21% Return Mutual Funds: Investing in mutual funds is one of the most popular and smart ways to grow your wealth over time. With market uncertainties being a constant factor, finding funds that perform well even in challenging times can be a game-changer.
In this article, we will discuss 10 mutual funds that have shown resilience and delivered 21% annual returns, even during tough market conditions.
What Makes a Mutual Fund Strong and reliable?
A mutual fund is strong and reliable when it can give stable returns even when the market is down. Such funds usually have expert fund managers who invest wisely in different sectors to spread the risk.
They focus on investing in quality companies with good financial health that can handle market ups and downs. These funds often take a long-term approach instead of chasing quick profits.
Diversifying investments in various industries also helps reduce risks. The fund’s track record and its ability to maintain steady returns over the years make it more trustworthy for investors. When a mutual fund is managed carefully and focuses on long-term growth, it becomes a safer option for investors during tough times.
These funds often have the following qualities:
Based on these criteria, we have identified the 10 best mutual funds that deliver 21% annual returns even during challenging market conditions.
1. HDFC Flexi Cap Fund
HDFC Flexi Cap Fund is a popular mutual fund known for its ability to invest across large-cap, mid-cap, and small-cap stocks. The fund has a strong track record of delivering consistent returns, even during market fluctuations.
It focuses on high-growth sectors such as technology, financial services, and consumer goods. With an experienced fund management team, it carefully selects quality stocks to build a well-diversified portfolio.
This strategy helps reduce risks and capture growth opportunities in various market conditions. Over the years, the fund has shown resilience by maintaining impressive annual returns, making it a reliable choice for long-term investors seeking steady wealth creation through equity investments across different market segments.
Why we choose:
- Why It Stands Out: Its strong track record of consistent performance and adaptability to changing market conditions.
- Past Performance: An impressive annual return of 22% over the last 5 years.
- Fund Manager’s Approach: Focuses on high-growth sectors like technology, financials, and consumer goods.
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2. SBI Small Cap Fund
SBI Small Cap Fund focuses on investing in small-cap companies with high growth potential. Despite being riskier, it has consistently delivered strong returns, even during challenging market phases. The fund is managed by experienced professionals who carefully select under-researched companies with solid business fundamentals.
By diversifying investments across various industries, the fund minimizes risks while maximizing growth opportunities. Its long-term investment approach has helped it maintain impressive returns, averaging around 21% annually.
This fund is ideal for investors with a high-risk appetite and a long-term horizon, as small-cap companies often require time to realize their growth potential. SBI Small Cap Fund is a preferred choice for those seeking higher returns from emerging businesses.
Why this?
- Why It Stands Out: Despite market downturns, small-cap companies in the portfolio have delivered strong returns.
- Past Performance: A steady 21% annualized return over the past 5 years.
- Best For: Investors with a high-risk appetite and a long-term investment horizon.
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3. Axis Growth Opportunities Fund
Axis Growth Opportunities Fund invests in both domestic and global equities to provide balanced growth.
It focuses on growing sectors like technology, healthcare, and financial services. The fund spreads its investments across different industries to reduce risks and capture more growth chances.
Managed by experienced professionals, it carefully selects companies with strong future potential. By investing in both Indian and global markets, it provides better protection against market ups and downs.
Over the years, the fund has given steady returns, making it a good option for long-term investors looking for balanced growth. It is suitable for those who want exposure to both Indian and international stocks with a focus on steady wealth creation.
Why this?
- Why It Stands Out: Its global exposure cushions against domestic market volatility.
- Past Performance: 21.5% annual returns over the past 5 years.
- Sector Focus: Tech, healthcare, and financial services dominate the portfolio.
4. Mirae Asset Emerging Bluechip Fund
This fund focuses on emerging companies with strong growth potential. Mirae Asset Emerging Bluechip Fund focuses on investing in both mid-cap and large-cap companies with strong growth potential. It carefully selects businesses that are still growing but have a stable base, ensuring a balance between safety and growth.
This fund is managed by experts who study the market and pick quality stocks from different industries to reduce risks. Its investment strategy focuses on finding companies that can perform well over the long term.
Despite market ups and downs, the fund has maintained steady returns, making it a trusted choice for investors. It is suitable for those looking for long-term wealth creation with a mix of stable and high-growth stocks.
Why this?
- Why It Stands Out: Its ability to identify hidden gems in the mid-cap and large-cap space.
- Past Performance: Delivered consistent returns of around 21% annually.
- Who Should Invest: Suitable for moderate to aggressive investors.
5. ICICI Prudential Technology Fund
Technology has been a driving force in wealth creation, and this fund capitalizes on it. ICICI Prudential Technology Fund focuses on investing in technology companies, which are known for high growth potential.
The fund primarily invests in businesses involved in software, IT services, digital solutions, and other tech-related sectors. Managed by experienced professionals, it carefully selects strong and innovative companies that can perform well over time.
Technology is a growing field, making this fund a reliable choice for long-term investors. Despite market ups and downs, it has delivered strong returns due to the consistent growth of tech stocks.
This fund is suitable for investors who understand the risks of the technology sector and are willing to stay invested for a longer period to benefit from the digital economy’s rise.
Why this?
- Why It Stands Out: Focuses solely on tech-driven businesses, a resilient sector in the modern economy.
- Past Performance: Exceptional 23% annual returns over 5 years.
- Best For: Tech enthusiasts and long-term investors.
6. Kotak Emerging Equity Fund
This Fund is a strong performer in the mid-cap segment. Kotak Emerging Equity Fund focuses on investing in mid-cap companies with strong growth potential. These companies are usually in the growth phase, making them ideal for long-term wealth creation.
The fund is managed by experts who carefully select businesses from different industries to spread risks and capture better returns. Its investment strategy focuses on identifying companies with solid fundamentals and promising future prospects.
Despite market ups and downs, the fund has consistently delivered good returns, making it a preferred choice for investors seeking higher growth. This fund is suitable for investors with a medium to high-risk appetite who are willing to invest for a longer period to benefit from the growth of emerging businesses.
Why to this?
- Why It Stands Out: Careful selection of mid-cap companies with high growth potential.
- Past Performance: Delivered 21% returns annually in the last 5 years.
- Investor Suitability: Ideal for investors with medium to high risk tolerance.
7. UTI Flexi Cap Fund
This Fund is known for its diversified approach to investing across sectors. UTI Flexi Cap Fund invests across large-cap, mid-cap, and small-cap stocks, giving it the flexibility to adapt to changing market conditions.
The fund aims to provide steady growth by diversifying investments across different sectors and companies. Managed by experienced professionals, it carefully selects quality stocks with strong growth potential and stable business models.
This strategy helps reduce risks while capturing better returns during various market phases. The fund has shown consistent performance over time, making it a reliable option for long-term investors.
It is suitable for those who want a balanced investment approach with exposure to stocks of different sizes, providing both stability and growth opportunities in the long run.
Why this?
- Why It Stands Out: Ability to switch between large, mid, and small-cap stocks as per market conditions.
- Past Performance: Around 21% annual returns over 5 years.
- Strength: Maintains a balanced portfolio to minimize risk.
8. Canara Robeco Emerging Equities Fund
This fund focuses on large and mid-cap companies. Canara Robeco Emerging Equities Fund focuses on investing in both large-cap and mid-cap companies with strong growth potential. This balanced investment approach provides stability from large-cap stocks and higher growth opportunities from mid-cap stocks.
Managed by skilled professionals, the fund carefully selects businesses from different industries to reduce risks and ensure steady returns. Its long-term investment strategy helps investors benefit from market growth over time.
The fund has delivered consistent returns, even during challenging market conditions, making it a preferred choice for conservative investors looking for steady growth. It is suitable for those seeking a reliable investment option with a mix of stability and higher growth potential.
- Why It Stands Out: Combines stability of large-caps with the growth potential of mid-caps.
- Past Performance: 21% annualized returns over the past 5 years.
- Who Should Invest: Conservative investors looking for steady growth.
9. DSP Small Cap Fund
The DSP Small Cap Fund has been a favorite among aggressive investors. DSP Small Cap Fund focuses on investing in small-cap companies with high growth potential. Small-cap stocks are often less explored but can provide impressive returns over time.
The fund is managed by experienced experts who carefully select companies with strong business models and promising future prospects. Although small-cap investments come with higher risks, this fund reduces those risks by spreading investments across various industries.
It has consistently delivered strong returns, even in market ups and downs. This fund is suitable for investors with a high-risk appetite and a long-term investment mindset, as small-cap companies often take time to grow and deliver returns. It’s an ideal choice for those seeking higher rewards from emerging businesses.
- Why It Stands Out: Invests in under-researched small-cap companies with immense growth potential.
- Past Performance: Consistent 21% returns over the last 5 years.
- Risk Factor: High-risk, high-reward fund.
10. Nippon India Growth Fund
This fund focuses on mid-cap companies with strong fundamentals. Nippon India Growth Fund focuses on investing in mid-cap companies with strong growth potential. These companies are usually in the growth phase, offering better returns than large-cap stocks over the long term.
The fund is managed by experienced professionals who carefully select businesses from different industries to reduce risks and capture growth opportunities. Its strategy is to invest in companies with solid business models and good future prospects.
Despite market ups and downs, the fund has delivered consistent returns, making it a trusted option for long-term investors. This fund is suitable for those with a moderate risk appetite who want to build wealth by investing in growing companies with stable and promising business foundations.
- Why It Stands Out: Balanced approach to investing in growing companies while managing risks.
- Past Performance: Around 21% annualized returns over 5 years.
- Ideal For: Moderate risk-takers with long-term goals.
## How to Choose the Right Fund for You
Before investing, consider the following factors:
- Investment Horizon:** Longer horizons allow for better returns despite short-term volatility.
- Risk Appetite: Evaluate your comfort with market fluctuations.
- Financial Goals: Match funds with your financial objectives.
- Expense Ratio: Lower expense ratios can lead to higher net returns.
# Conclusion
While past performance is not a guarantee of future results, these 10 mutual funds have demonstrated resilience and strong returns, even during challenging market conditions. They are excellent options for investors seeking consistent growth. Always conduct thorough research or consult a financial advisor before investing.
With the right mutual fund, you can navigate even the toughest market conditions and achieve your financial goals!
