9 mutual fund schemes with 20% returns; are they in your portfolio?

Before investing in a mutual fund scheme, investors must examine its past returns to similar schemes in the same category. This gives investors a perspective of the scheme's overall growth potential. Although wealth advisors often tell investors not to emphasise too much on historical returns, past returns tend to influence retail investors' investment decisions.

Here is a breakdown of the past five years' returns delivered by large-cap mutual funds. Let's first understand what these funds are.

Largecap mutual funds

Largecap mutual funds refer to schemes that invest a minimum of 80 percent of assets in large-cap stocks. There are 32 schemes in the largecap mutual fund category, with a total asset size of ₹3.79 lakh crore. September alone witnessed an inflow of ₹1,769 crore into this asset size category.

Nine mutual fund schemes delivered an annualised return of 19 percent and above in the past five years. When we examine the past returns across the category of large-cap funds, these schemes gave a five-year return of 19.23 percent.

As we can see in the table above, the maximum returns were given by Nippon India Large Cap Fund (22.35 percent), while the minimum returns were posted by Edelweiss Large Cap Fund (19.49 percent) and Bandhan Large Cap Fund (19.64 percent). These top-performing largecap mutual funds gave an average of 20 percent in the past five years. This means if someone had invested ₹1 lakh in the scheme five years ago, it would have swelled to ₹2.48 lakh.

Research before investing