For investors aiming to build wealth over the long term, mutual funds with strong 5-year compound annual growth rates (CAGR) provide promising opportunities. These funds have consistently outpaced the market, driven by strategic asset selection and skilled fund management.
Here are some of the top-performing funds in this category:
Bank of India Small Cap Fund
The Bank of India Small Cap Fund is an equity mutual fund that focuses primarily on investing in small-cap companies. Launched on December 19, 2018, the fund has shown impressive performance, achieving a CAGR of 38.66 percent over the last five years based on daily rolling returns. As of August 2024, the fund’s Assets Under Management (AUM) stood at Rs.1,516.96 crore.
The mutual fund has a Current NAV of Rs.52.09. The Bank of India Small Cap Fund follows a diversified sector allocation strategy, with significant investments in Industrials (12.23 percent), Consumer Discretionary (11.52 percent), and Materials (9.41 percent). The fund also maintains a solid position in Financials, accounting for 9.02 percent of its portfolio.
Edelweiss Small Cap Fund
The Edelweiss Small Cap Fund is an open-ended equity mutual fund that primarily invests in small-cap stocks. Launched on February 1, 2019, this fund has demonstrated a CAGR of 34.66 percent over the past five years based on daily rolling returns. As of now, it manages assets totaling approximately Rs.4,292.71 crore.
The mutual fund has a Current NAV of Rs.46.82. The Edelweiss Small Cap Fund follows a well-diversified sector allocation, with a strong emphasis on Industrials (21.14 percent) and Financials (14.16 percent). It also invests in Consumer Discretionary (11.80 percent), Materials (5.23 percent), and Pharmaceuticals (4.82 percent).
Tata Small Cap Fund
The Tata Small Cap Fund is an open-ended equity mutual fund that focuses on investing in small-cap stocks, aiming for long-term capital appreciation. Launched on November 12, 2018, the fund has generated a CAGR of 35.29 percent over the last five years based on daily rolling returns. As of the latest update, it manages assets totaling approximately Rs.9,319.04 crore.
The mutual fund has a Current NAV of Rs.45.97. The Tata Small Cap Fund follows a diversified sector allocation, with a significant focus on Materials (25.75 percent) and Industrials (18.28 percent). It also invests in Consumer Discretionary (8.00 percent), Financials (6.29 percent), and CBLO/Reverse Repo (5.57 percent).
Mirae Asset Midcap Fund
The Mirae Asset Midcap Fund is an open-ended equity mutual fund that focuses on investing in mid-cap stocks, aiming for long-term capital appreciation. Launched on July 31, 2019, the fund has delivered a CAGR of 27.87 percent over the last five years based on daily rolling returns. As of now, it manages assets totaling approximately Rs.17,787.87 crore.
The mutual fund has a Current NAV of Rs.36.16. The Mirae Asset Midcap Fund has a diversified sector allocation, with a strong emphasis on Financials (14.17 percent) and Materials (10.75 percent). It also invests in Consumer Discretionary (10.68 percent), Industrials (8.42 percent), and Health Care (8.16 percent).
Written by – Siddesh S Raskar
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