Lumpsum investments in these MF schemes grew 400%+ in 7 years: Know the super performers

Kolkata: Indians are going gaga over mutual funds. There are thousands of mutual fund schemes in the market and investors are constantly looking for schemes which provide superior returns preferably over an extended period of time. Though SIP, or Systematic Investment Plan, is attracting investors in droves, lumpsum investments, if they are done at opportune moments can generate significantly high returns.

Lumpsum investments are somewhat similar to fixed deposits in banks with the difference that in a bank returns are predetermined. Since the entire amount is invested at one go, the money starts working immediately and helps the investor take full advantage of any market rise. Therefore, it helps the money grow faster and therefore lump sum investments are considered ideal for long-term investments.

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Here we have a look at half a dozen mutual fund schemes that have generated returns more than 4 times, or 400%, in a time period of seven years. Report state that there were more than 233 funds during the same time period and they have increased investments between 106% and 218%. All equity funds (both growth and regular options) were considered.

Quant Small Cap Fund: According to returns, this is the best-performer of the lot. It has multiplied the lumpsum investment by 514% in the past seven years. It translates into a Compounded Annual Growth Rate of 26.35%. In other words, Rs 1,000 invested seven years ago has turned to Rs 5,140.

Motilal Oswal Midcap Fund: This fund has generated a return of 22.80% (XIRR). An amount has been multiplied 4.21 times in seven years -- Rs 1,000 seven years ago has become Rs 4,210.

Nippon India Small Cap Fund: This is the best small cap fund in the past seven years. It generated 22.58% CAGR return. It has the biggest AUM (assets under management) among all small cap funds. It has multiplied Rs 1,000 invested seven years ago into Rs 4,160 now.

Quant ELSS Tax Saver Fund: This fund lumpsum investment at the CAGR of 22.47%. If anyone put Rs 1,000 into Quant ELSS Tax Saver Fund seven years ago, it would have become Rs 4,130 now.

Axis Small Cap Fund: This fund generated a compounded annual growth rate of 22.24%. It has grown an investment of Rs 1,000 into Rs 4,080 in the past seven years.

India Growth Mid Cap Fund: This mutual fund scheme has the distinction of having the highest Net Asset Value (NAV) in the country, it has generated a return (CAGR) of 21.93. The net outcome: a lumpsum of Rs 1,000 has turned into Rs 4,010 in this time window.

Some other mutual fund schemes that have generated high returns in the past seven years are:

Edelweiss Mid Cap Fund: Multiplied lumpsum 3.89 times

Quant Flexi Cap Fund: 3.89 times

Quant Mid Cap Fund: 3.73 times

Kotak Small Cap Fund: 3.71 times

SBI Contra Fund: 3.63 times

Parag Parikh Flexi Cap Fund: 3.51 times

Nippon India Value Fund: 3.29 times

HDFC Flexi Cap Fund: 3.29 times