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
Quant Small Cap Fund
The small-cap mutual fund has given a 41.98% return in the last three years. The fund is benchmarked against NIFTY Smallcap 250 Total Return Index, which has given 31.16% return in the same period.
Which mutual fund gives the highest return in 3 years? ›
Quant Small Cap Fund
The small-cap mutual fund has given a 41.98% return in the last three years. The fund is benchmarked against NIFTY Smallcap 250 Total Return Index, which has given 31.16% return in the same period.
Which of the smallcap mutual funds has generated highest returns in last 3 years? ›
The top performing mutual funds over the last three years include Nippon India Small Cap Fund, Quant Small Cap Fund, HSBC Small Cap Fund, Tata Small Cap Fund, and ICICI Pru BHARAT 22 FOF.
What are the top 5 performing mutual funds? ›
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 rowReturns 3Y: These are the annualised returns you would have gotten if you had invested in this fund 3 years ago. We update it on daily basis based on the latest NAV. Risk: It is calculated using Standard Deviation (variation of returns from its mean).
What is a good return on investment over 3 years? ›
General 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 type of mutual fund give best returns? ›
- Large Cap. ₹1000. 13.27% 40.85%
- Infrastructure. ₹100. 24.61% 40.28%
- Infrastructure. ₹100. 24.61% 40.28%
- PSU. ₹500. 39.70% 43.18%
- Infrastructure. ₹100. 24.61% 40.28%
- Infrastructure. ₹100. 24.61% 40.28%
- Infrastructure. ₹500. 24.61% 40.28%
- Motilal Oswal Midcap Fund Direct-Growth. Mid Cap. ₹500. 18.68% 38.27%
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?
Based on 1yr return, the Top Oldest Mutual Funds In India include the Quant Small Cap Fund, Nippon India Growth Fund, Tata Mid Cap Growth Fund, Franklin India Prima Fund, and ICICI Pru Multicap Fund.
Which Midcap mutual funds has generated highest returns in the last 3 years? ›
Fund Performance: The Motilal Oswal Midcap Fund has given 37.69% annualized returns in the past three years and 29.34% in the last 5 years. The Motilal Oswal Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Best retirement income funds
- Vanguard LifeStrategy Income Fund (VASIX).
- Vanguard Target Retirement Income Fund (VTINX).
- Fidelity Freedom Index Income Fund Investor Class (FIKFX).
- Schwab Monthly Income Fund Income Payout (SWLRX).
- Schwab Monthly Income Fund Flexible Payout (SWKRX).
These seven low-risk but potentially high-return investment options can get the job done:
- Money market funds.
- Dividend stocks.
- Bank certificates of deposit.
- Annuities.
- Bond funds.
- High-yield savings accounts.
- 60/40 mix of stocks and bonds.
Money market mutual funds = lowest returns, lowest risk
They are considered one of the safest investments you can make. Money market funds are used by investors who want to protect their retirement savings but still earn some interest — often between 1% and 3% a year. (Learn more about money market funds.)
Which mutual fund is best for 3 years? ›
Equity Mutual Funds: Wealth multipliers
| Scheme Name | Current value of Rs 10,000 lumpsum investment made three years ago | Absolute return |
|---|
| Motilal Oswal Midcap Fund | 25,011 | 150.11% |
| Quant Small Cap Fund | 24,211 | 142.11% |
| Nippon India Small Cap Fund | 24,012 | 140.12% |
| Quant Mid Cap Fund | 23,785 | 137.85% |
16 more rows3 days ago
It completely depends on the mutual fund you invest in. Some mutual funds, do have a lock-in period. ELSS mutual funds have a lock-in period of 3 years. Many other mutual funds have lock-in periods too.
What is a 3 fund portfolio to retire on? ›
The task, then, is to take these three basic non-cash assets — domestic stocks, international stocks, and bonds — decide how much of each to hold (your asset allocation). Choose where to hold each of these asset classes, and finally choose a mutual fund to use for each asset class.
Which mutual fund has the highest 5-year return? ›
HDFC Mid-Cap Opportunities Fund, the largest scheme in the category, gave 23.72% in a five-year period. Contra funds gave an average return of around 21.43% in the last five years. Three schemes in the category completed five years in the market. SBI Contra Fund gave 25.58% in a five-year period.
Which mutual fund gives 40% return? ›
What are large cap mutual funds?
| Large Cap funds | 1-year-return (%) |
|---|
| Nippon India Large Cap Fund | 46.42 |
| ICICI Prudential Bluechip Fund | 41.80 |
| Invesco India Largecap Fund | 41.60 |
| ITI Large Cap Fund | 41.47 |
4 more rowsApr 8, 2024
