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
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.
Which mutual fund has the best return in last 3 years? ›
Best Performing Mutual Funds In Last 3 Years
| Name | AUM (Cr) | NAV |
|---|
| Quant Small Cap Fund | 17348.96 | 267.22 |
| HSBC Small Cap Fund | 13401.24 | 81.35 |
| Tata Small Cap Fund | 6236.38 | 38.63 |
| ICICI Pru BHARAT 22 FOF | 886.08 | 30.56 |
1 more rowWhat are High Return Mutual Fund?
- ICICI Prudential BHARAT 22 FOF Direct Growth. ...
- Motilal Oswal Midcap Direct Growth. ...
- Quant Small Cap Fund Growth Option Direct Plan. ...
- Quant Mid Cap Fund Growth Option Direct Plan. ...
- Nippon India Small Cap Fund - Direct Plan - Growth Plan. ...
- HSBC Small Cap Fund Fund Direct Growth.
What is the 3-year lock-in period? The 3-year lock-in period applies specifically to Equity Linked Saving Schemes (ELSS) - a type of tax-saving mutual fund. It restricts redeeming your investment within the first 3 years from purchase.
What mutual funds have the highest returns? ›
Top 25 Mutual Funds
| Rank | Symbol | Fund Name |
|---|
| 1 | VSMPX | Vanguard Total Stock Market Index Fund;Institutional Plus |
| 2 | FXAIX | Fidelity 500 Index Fund |
| 3 | VFIAX | Vanguard 500 Index Fund;Admiral |
| 4 | VTSAX | Vanguard Total Stock Market Index Fund;Admiral |
21 more rowsGeneral 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.
What is the safest investment with the highest return? ›
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.
Here is the list of schemes that gave more than 20% return in all four horizons, according to a performance chart by ACE MF. These eight schemes were from Quant Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, and SBI Mutual Fund.
Which mutual funds give 30% return? ›
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?
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. 1. 2.
Wealth multipliers in last three years
| Scheme Name | Current value of Rs 1 lakh invested three years ago | Multiplied by |
|---|
| HSBC Small Cap Fund | 2,31,394.47 | 2.31 |
| Quant Flexi Cap Fund | 2,29,521.35 | 2.30 |
| Franklin India Smaller Cos Fund | 2,25,136.74 | 2.25 |
| Nippon India Multi Cap Fund | 2,23,922.90 | 2.24 |
16 more rowsApr 10, 2024
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.
Can I withdraw mutual fund after 3 years? ›
Understanding ELSS redemption
ELSS Mutual Funds come with a lock-in period, typically three years. During this lock-in period, investors cannot redeem or withdraw their investments. However, once the lock-in period is over, investors have the flexibility to redeem their ELSS units.
What if I invest $5,000 in mutual funds for 5 years? ›
How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What are the top 5 performing mutual funds today? ›
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 rowTop Mutual Fund Houses in India
| S.No. | Mutual Fund House |
|---|
| 1. | SBI Mutual Fund |
| 2. | ICICI Prudential Mutual Fund |
| 3. | HDFC Mutual Fund |
| 4. | Aditya Birla Sun Life Mutual Fund |
6 more rowsMay 16, 2024
Fund House Fund Category Fund Rank and Ratios Fund Parameters Investment Parameters Filter
| Scheme Name | Plan | 1Y |
|---|
| Invesco India Contra Fund - Direct Plan - Growth | Direct Plan | 45.71% |
| SBI Contra Fund - Direct Plan - Growth | Direct Plan | 44.74% |
| Sponsored AdvInvest Now Invesco India Large & Mid Cap Fund - Direct Plan - Growth | Direct Plan | 50.86% |
24 more rowsBest SIP Plans for 5 Years to invest (Debt)
| Fund | AUM (In Crs) | Expense Ratio |
|---|
| ICICI Prudential All Seasons Bond Fund Direct Plan Growth | ₹12562 Cr | 0.53 % |
| ICICI Prudential Banking and PSU Debt Fund Direct Plan Growth | ₹9250 Cr | 0.39 % |
| Nippon India Corporate Bond Fund Direct Plan Growth Plan | ₹3178 Cr | 0.35 % |
2 more rowsHighest Return Mutual Funds in Last 1 Year
| Fund Name | 6 Months Return | 1 Year Return |
|---|
| ICICI Prudential Infrastructure Fund (G) | 28.0% | 62.9% |
| Quant Small Cap Fund (G) | 24.8% | 62.5% |
| Quant Flexi Cap Fund (G) | 29.3% | 59.3% |
| Bank of India Manufacturing & Infra fund (G) | 23.7% | 58.7% |
16 more rowsFrequently Asked Questions
| Fund Name | Fund Category | 5 Year Return (Annualized) |
|---|
| HDFC Short Term Debt Fund | Debt | 7.3 % p.a. |
| Nippon India Short-term Fund | Debt | 7.27 % p.a. |
| Mirae Asset Short Duration Fund | Debt | 6.67 % p.a. |
| Baroda BNP Paribas Short Duration Fund | Debt | 6.57 % p.a. |
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