Mutual funds have been a reliable investment choice for individuals looking to build wealth over time. Among the various fund categories, some stand out for their impressive long-term performance. In this article, we will explore the top 6 mutual funds that have consistently delivered over 10% Compound Annual Growth Rate (CAGR) over the last decade. These funds are known for their strong growth, and are ideal for investors aiming for long-term wealth creation.
1. HDFC Large Cap Fund
- CAGR (10 Years): 12%
- NAV (As of Feb 2025): ₹1,140.46
- AUM: ₹7.57 lakh crore
- Expense Ratio: 1.01%
- Exit Load: 1% if redeemed within 1 year
- Annual Return: 6.5%
The HDFC Large Cap Fund is a high-risk option that has provided solid returns over the years. Despite being a large-cap fund, it has managed to outperform many others, delivering a steady growth rate of 12% CAGR in the last 10 years. It is managed by experienced professionals, making it a solid pick for long-term investors looking for growth.
2. SBI Bluechip Fund
- CAGR (10 Years): 12.12%
- NAV: ₹93.40
- AUM: ₹11.06 lakh crore
- Expense Ratio: 0.82%
- Exit Load: 1% if redeemed within 1 year
- Annual Return: 10.4%
SBI Bluechip Fund is another strong contender in the large-cap equity space, with an impressive 12.12% CAGR over the past decade. While it’s categorized as a high-risk fund, the potential for growth has made it popular among investors. The fund’s relatively low expense ratio makes it more attractive for cost-conscious investors.
3. Mirae Asset Large Cap Fund
- CAGR (10 Years): 12.58%
- NAV (As of Feb 2025): ₹115.13
- AUM: ₹1.81 lakh crore
- Expense Ratio: 0.49%
- Exit Load: 1% if redeemed within 1 year
- Annual Return: 9.8%
With a CAGR of 12.58%, the Mirae Asset Large Cap Fund stands out as one of the top performers in the large-cap segment. The fund’s low expense ratio makes it an appealing choice for investors who want to minimize costs. Despite the risk associated with equity funds, it offers a solid track record and long-term growth potential.
4. Canara Robeco Bluechip Equity Fund
- CAGR (10 Years): 12.87%
- NAV: ₹66.59
- AUM: ₹1.09 lakh crore
- Expense Ratio: 0.51%
- Exit Load: 1% if redeemed within 1 year
- Annual Return: 12.8%
The Canara Robeco Bluechip Equity Fund has delivered an exceptional CAGR of 12.87% over the past decade. This fund is known for its solid performance and high-risk nature, making it suitable for aggressive investors seeking long-term gains. The 12.8% annual return it offers further boosts its appeal.
5. ICICI Prudential Bluechip Fund
- CAGR (10 Years): 13.21%
- NAV: ₹110.08
- AUM: ₹7.81 lakh crore
- Expense Ratio: 0.91%
- Exit Load: 1% if redeemed within 1 year
- Annual Return: 9%
With a CAGR of 13.21%, the ICICI Prudential Bluechip Fund has been one of the top-performing large-cap funds. The fund has attracted investors due to its strong growth potential. Despite its 0.91% expense ratio, it has provided steady returns, making it a solid choice for those looking for long-term investments.
6. Nippon India Large Cap Fund
- CAGR (10 Years): 13.23%
- NAV: ₹90.54
- AUM: ₹5.13 lakh crore
- Expense Ratio: 0.71%
- Exit Load: 1% if redeemed within 7 days
- Annual Return: 9.2%
The Nippon India Large Cap Fund has shown remarkable consistency, delivering 13.23% CAGR over the last decade. Managed by a team of experienced professionals, it has proven to be an excellent long-term investment. Its 0.71% expense ratio and strong annual returns make it an attractive option for investors looking for growth.
Why These Funds Stand Out
- Strong Historical Performance: All of these funds have demonstrated their ability to consistently deliver returns of over 10% CAGR over a span of 10 years.
- Expense Ratio: The funds have varying expense ratios, but all remain relatively competitive in terms of fees, with most below 1%, which helps investors keep their overall costs in check.
- Risk Consideration: As these are primarily large-cap equity funds, they carry higher risks compared to more conservative options. However, the long-term growth they offer makes them suitable for high-risk investors.
How to Choose the Right Fund
When selecting a mutual fund for long-term growth, consider the following:
- Risk Tolerance: These funds are high-risk, high-reward options suitable for investors with a higher risk appetite.
- Investment Horizon: These funds are ideal for long-term investors, as they require patience to ride out market fluctuations.
- Expense Ratio and Fees: Always consider the expense ratio as it directly impacts your returns. Lower expense ratios can make a significant difference in the long term.
- AUM (Assets Under Management): Larger AUMs usually indicate that the fund is well-established and has a proven track record.
Conclusion
These six mutual funds have proven to be excellent investment vehicles, offering consistent 10%+ CAGR returns over the past decade. By carefully evaluating their expense ratios, exit loads, and performance history, investors can make informed decisions. While these funds are suitable for those with a high-risk tolerance, it’s essential to align them with your financial goals and investment timeline.
Frequently Asked Questions
1. What does CAGR mean?
CAGR stands for Compound Annual Growth Rate, which measures the mean annual growth rate of an investment over a specific period of time.
2. Are these mutual funds safe for short-term investments?
These funds are suited for long-term investments and may carry a high degree of risk in the short term. It’s important to have a long-term horizon when investing in these funds.
3. How should I choose the right mutual fund?
Consider your risk tolerance, investment goals, and time horizon when selecting a mutual fund. Also, evaluate the expense ratio and fund performance before making a decision.
4. What is the significance of the expense ratio?
The expense ratio reflects the cost of managing the fund. A lower ratio means you keep more of your returns, which is why it’s an important factor in choosing the right fund.
5. Can I withdraw from these funds before one year?
These funds typically charge a 1% exit load if redeemed within one year. It’s best to stay invested for the long term to avoid these fees.
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