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Top Performing Mutual Funds for Best Returns in India for 2024

Top Performing Mutual Funds for Best Returns in India for 2024
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When you are looking to maximise your investment returns, exploring top return mutual funds might be a strategic approach. Mutual funds offer a diversified investment option managed by professionals, and those with high returns have demonstrated their potential to outperform the market over various periods. Understanding what makes these funds perform well, the risks involved, and the factors to consider before investing can help you make informed decisions. This guide will delve into the intricacies of top return mutual funds, providing insights into how they work, who should consider investing in them, and the key aspects to evaluate to enhance your investment strategy.

Top 10 High Return Mutual Funds in India (2024)

NameSub CategoryAUM (Rs. in cr.)Sharpe RatioTime since inceptionCAGR 5Y (%)3Y Avg Annual Rolling Return (%)Returns vs sub-category - 5Y (%)Alpha (%)Volatility (%)
Parag Parikh Flexi Cap FundFlexi Cap Fund₹75,956.222.87142.0027.6724.021.723.7310.96
HDFC Mid-Cap Opportunities FundMid Cap Fund₹75,382.302.39142.0031.7032.421.211.5215.73
HDFC Flexi Cap FundFlexi Cap Fund₹61,571.573.00141.0025.7828.881.604.1811.85
Nippon India Small Cap FundSmall Cap Fund₹60,372.552.34141.0039.8439.871.292.5216.77
ICICI Pru Bluechip FundLarge Cap Fund₹59,364.402.69141.0022.9522.521.382.9012.68
Kotak Emerging Equity FundMid Cap Fund₹50,601.842.56141.0031.7027.841.212.1415.29
ICICI Pru Value Discovery FundValue Fund₹48,805.973.28141.0028.6228.301.285.0911.26
SBI Contra FundContra Fund₹37,845.692.65141.0033.7434.051.253.0814.07
Nippon India Multi Cap FundMulti Cap Fund₹37,150.982.40141.0028.6634.031.211.4614.61
SBI Focused Equity FundFocused Fund₹35,727.792.19141.0021.1419.481.131.3111.17

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the top 10 mutual funds with highest return in India list is from 3rd September 2024 and the data is derived from Tickertape Mutual Fund Screener. It is from a pre-built screen called ‘Consistent Out-performers’. Try it out now!

🚀 Pro Tip: Use Tickertape’s Mutual Fund Screener  to filter and compare funds based on performance, expense ratio, and risk. Find funds that match your goals and risk tolerance for smarter investment choices.

Details of the Mutual Funds With Good Returns

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund, launched on 10th October 2012 by PPFAS Mutual Fund, is a diversified equity scheme. Managed by Raunak Onkar, Rajeev Thakkar, and Raj Mehta, the fund primarily invests in sectors like banking, services, IT, consumer goods, and auto manufacturing. The fund aims to achieve long-term capital growth through an actively managed portfolio of equity and equity-related securities. It also invests in Indian equities, overseas stocks, debt securities, and related products.

As of 3rd September 2024, the fund has Assets Under Management (AUM) of Rs. 75,956.22 cr., and a Sharpe ratio of 2.87. Over the past five years, it has achieved a Compound Annual Growth Rate (CAGR) of 27.67%. The fund’s 3-year average annual rolling return is 24.02%. Compared to its sub-category, it has a return differential of 1.72% over five years, an alpha of 3.73%, and a volatility rate of 10.96%.

HDFC Mid-Cap Opportunities Fund

HDFC is a leading private-sector bank in India. It was founded in 1994 to promote financial inclusion. It now operates in 17 countries across Asia, Africa, and the Middle East. The HDFC Mid-Cap Opportunities Fund, launched in 2008 and managed by Chirag Setalvad, is an equity fund focused on mid-cap companies. The fund seeks capital appreciation by investing in stocks of small, medium, and large-sized firms. 

As of 3rd September 2024, the fund has an AUM of Rs. 75,382.30 cr., and a Sharpe ratio of 2.39. Over the past five years, it has achieved a CAGR of 31.70%. The fund’s 3-year average annual rolling return is 32.42%. Compared to its sub-category, it has a return differential of 1.21% over five years, an alpha of 1.52%, and a volatility rate of 15.73%.

HDFC Flexi Cap Fund

HDFC Flexi Cap Fund, launched in January 2015, is managed by Roshi Jain and Priya Ranjan. This equity-focused mutual fund aims to invest at least 64% of its assets in equity-related instruments. The fund’s portfolio is diverse, with 91.54% of its investments in domestic equities, including 71.54% in large-cap stocks, 4.48% in mid-cap stocks, and 4.93% in small-cap stocks.

As of 3rd September 2024, the fund has an AUM of Rs. 61,571.57 cr., and a Sharpe ratio of 3.00. Over the past five years, it has achieved a CAGR of 25.78%. The fund’s 3-year average annual rolling return is 28.88%. Compared to its sub-category, it has a return differential of 1.60% over five years, an alpha of 4.18%, and a volatility rate of 4.18%.

Nippon India Small Cap Fund

Launched on 16th September 2010, the Nippon India Small Cap Fund is managed by Nippon Life India Asset Management Limited (NAM India), one of the largest asset management companies in India. The fund focuses on small-cap stocks, aiming to generate small cap mutual funds returns through long-term capital appreciation by primarily investing in equity and equity-related instruments of small-cap companies.

As of 3rd September 2024, the fund has an AUM of Rs. 60,372.55 cr., and a Sharpe ratio of 2.34. Over the past five years, it has achieved a CAGR of 39.84%. The fund’s 3-year average annual rolling return is 39.87%. Compared to its sub-category, it has a return differential of 1.29% over five years, an alpha of 2.52%, and a volatility rate of 16.77%.

ICICI Pru Bluechip Fund

ICICI Flexi Cap Fund, launched on 19th July 2021, is an open-ended equity scheme that dynamically invests in large, medium, and small-cap stocks. The fund aims to provide long-term wealth growth by diversifying across various market capitalisations.

As of 3rd September 2024, the fund has an AUM of Rs. 59,364.40 cr., and a Sharpe ratio of 2.69. Over the past five years, it has achieved a CAGR of 22.95%. The fund’s 3-year average annual rolling return is 22.52%. Compared to its sub-category, it has a return differential of 1.38% over five years, an alpha of 2.90%, and a volatility rate of 12.68%.

Kotak Emerging Equity Fund

Kotak Mahindra Asset Management Company launched the Kotak Emerging Equity Fund on 30th March 2007. This fund invests in mid-cap companies with a view to generating long-term capital appreciation. The fund manages assets worth Rs. 50,601.84 cr., and has a Sharpe ratio of 2.56. It has been in operation for 141 months.

Over the past five years, the fund has delivered a CAGR of 31.70%. Its 3-year average annual rolling return is also 27.84%. When compared to its sub-category over five years, the fund has a return differential of 1.21%, an alpha of 2.14%, and a volatility rate of 15.29%.

ICICI Pru Value Discovery Fund

ICICI Prudential Value Discovery Fund-Growth, managed by Sankaran Naren and Dharmas Kakkad. It is a value-oriented mutual fund under ICICI Prudential Mutual Fund. The fund primarily focuses on the financial, energy, healthcare, technology, and automobile sectors. It maintains a lower risk exposure in the energy and financial sectors compared to similar funds.

As of 3rd September 2024, the fund has an AUM of Rs. 48,805.97 cr., and a Sharpe ratio of 3.28. Over the past five years, it has achieved a CAGR of 28.62%. The fund’s 3-year average annual rolling return is 28.30%. Compared to its sub-category, it has a return differential of 1.28% over five years, an alpha of 5.09%, and a volatility rate of 11.26%.

SBI Contra Fund

SBI Funds Management Private Limited launched the SBI Small Cap Fund on 9th September 2009. This fund adopts a contrarian investment strategy, seeking long-term capital appreciation by investing in stocks that are currently out of favour in the market. The fund’s assets under management stand at Rs. 37,845.69 cr. with a Sharpe ratio of 2.65. It has been operational for 141 months.

Over the past five years, the fund has achieved a CAGR of 33.74%. The fund’s 3-year average annual rolling return is 34.05%. When compared to its sub-category over five years, the fund has a return differential of 1.25%, an alpha of 3.08%, and a volatility rate of 14.07%.

Nippon India Multi Cap Fund

Nippon India Multi Cap Fund, introduced in 2013 by Nippon India Mutual Fund, invests in a broad range of equity, equity-related securities, debt, and money market instruments. Its main aim is to achieve capital appreciation and provide opportunities for long-term growth, while also ensuring consistent returns. This fund’s diversified approach offers potential for wealth growth over the long term.

As of 3rd September 2024, the fund has an AUM of Rs. 37,150.98 cr., and a Sharpe ratio of 2.40. Over the past five years, it has achieved a CAGR of 28.66%. The fund’s 3-year average annual rolling return is 34.03%. Compared to its sub-category, it has a return differential of 1.21% over five years, an alpha of 1.46%, and a volatility rate of 14.61%.

SBI Focused Equity Fund

SBI Focused Fund is one of the largest and most actively traded mutual fund schemes in India. Launched in 2013 by Sanghvi, Mahalingam, Kumar, and Sharma, it is managed by SBI Financial Services Limited, with Sanghvi Capital Management Private Limited acting as the investment advisor. The fund invests in both equity and debt, targeting companies at various stages of growth and value, both domestically and internationally. This broad approach has kept it in the spotlight for some time.

As of 3rd September 2024, the fund has an AUM of Rs. 35,727.79 cr., and a Sharpe ratio of 2.19. Over the past five years, it has achieved a CAGR of 21.14%. The fund’s 3-year average annual rolling return is 19.48%. Compared to its sub-category, it has a return differential of 1.13% over five years, an alpha of 1.31%, and a volatility rate of 11.17%.

How to Invest in High-Return Mutual Funds?

Investing in high-return mutual funds can be a rewarding strategy if you follow a structured approach.

Step 1: Identify Your Financial Goals

Before investing, you should define your financial objectives. Determine whether you are aiming for long-term growth, regular income, or a combination of both. Clear goals can help you select mutual funds that align with your needs. For instance, if your goal is to save for your child’s education, you might look for funds that show strong long-term performance.

Step 2: Research Top Return Mutual Funds Using Tickertape

Tickertape’s Mutual Fund Screener is a powerful tool for identifying high-return mutual funds. Here’s how you can use it:

  1. Visit Tickertape: Go to the Tickertape website and access the Mutual Fund Screener.
  2. Set Filters: Apply filters based on criteria such as fund type, historical performance, risk level, and other preferences.
  3. Analyse Results: Focus on mutual funds that have demonstrated consistent returns over the last 5 to 10 years.

Step 3: Evaluate Fund Performance

Evaluating the performance of selected funds is essential. You can consider metrics like average mutual fund return percentage, return rate and interest rate. Analysing these metrics can help you understand how the fund has performed in different market conditions. For instance, funds with a high average return percentage over several years may indicate robust performance.

Step 4: Understand the Fund’s Investment Strategy

Understanding the investment strategy of the mutual funds you are considering is crucial. Look into the sectors and stocks the fund invests in and the fund manager’s approach. For example, some funds may focus on high-growth sectors like technology, while others might have a diversified portfolio.

Step 5: Assess Your Risk Tolerance

High-return mutual funds often come with higher risks. It’s important to ensure that the fund’s risk profile aligns with your risk tolerance. Examine the fund’s volatility and how it has performed during market downturns. This helps you determine if you are comfortable with the level of risk involved.

Step 6: Diversify Your Portfolio

Diversification can help manage investment risk. Consider investing in a mix of funds, including those with high returns and others that offer stability. Diversifying across different asset classes and sectors can mitigate potential losses and enhance your portfolio’s resilience.

Step 7: Create a Demat Account on smallcase

Creating a Demat account on smallcase simplifies the investment process. You start by registering on the website and completing the KYC process with your personal details. After linking your bank account for seamless transactions, you can begin investing in mutual funds and other financial instruments offered on the platform.

Step 8: Regular Monitoring and Review

After making your investments, you can regularly monitor the performance of your mutual funds. Review your investments annually and adjust them based on performance and changing financial goals. This ensures that your investments remain aligned with your objectives.

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

What is the Best Return Mutual Fund?

The best return mutual fund is one that aligns with your investment goals, risk tolerance, and time horizon while potentially providing superior returns compared to its peers. These funds typically have consistently outperformed their benchmarks and have strong management teams. However, the definition of the “best” can vary depending on individual preferences and market conditions. For some, the best return mutual fund might be one that has performed well over the long term, while others might prioritise short-term gains.

How Does a Mutual Fund With Good Returns Work?

A mutual fund with good returns works by pooling money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. The fund is managed by professional fund managers who aim to maximise returns based on the fund’s investment objectives. Here are key elements:

  • Active Management: Fund managers actively buy and sell securities to take advantage of market opportunities and manage risk. They conduct in-depth research and analysis to make informed investment decisions.
  • Diversification: By investing in a variety of assets, the fund reduces the risk associated with any single investment. This means if one asset performs poorly, others in the portfolio might perform well, balancing the overall return.
  • Compounding: The returns generated by the investments are reinvested to generate more returns, leading to compound growth over time. This can significantly enhance the value of the investment over the long term.

Features of High-Return Mutual Funds

High-return mutual funds possess several distinctive features:

  • Strong Historical Performance: These funds have demonstrated the ability to deliver superior returns over a significant period. They often outperform their benchmarks and peers.
  • Experienced Fund Management: Seasoned professionals with a proven track record manage them. The expertise and experience of the fund manager can play a critical role in the fund’s performance.
  • High Volatility: Often, these funds invest in assets that have high potential returns but also higher risks. This can result in greater price fluctuations.
  • Sector Focus: Many high-return funds focus on specific sectors or themes expected to outperform the broader market. For example, a fund might focus on emerging technologies or renewable energy.

Advantages of Investing in MF With Highest Return

Investing in the highest return mutual fund in India can offer several advantages:

  • Potential for High Returns: These funds may provide significant returns, potentially outperforming other investment options. This can help you achieve your financial goals faster.
  • Professional Management: Experienced professionals manage the funds and make informed investment decisions.This can be particularly beneficial for those who do not have the time or expertise to manage their own investments.
  • Diversification: High-return mutual funds often offer diversification, reducing the risk associated with individual investments. By spreading investments across various assets, they can reduce the impact of poor performance by any single asset.
  • Liquidity: These funds generally offer high liquidity, allowing you to buy and sell units easily. This means you can access your money when you need it, unlike some other investment options that might have lock-in periods.

How Returns are Calculated in Mutual Funds? (Formula)

Calculating mutual fund returns can help you understand the performance of your investments. The most common formula used is the Compound Annual Growth Rate (CAGR):

CAGR = [(Ending Value/beginning Value)^1/n] – 1

Where:

  • Ending Value is the value of the investment at the end of the period.
  • Beginning Value is the value of the investment at the beginning of the period.
  • n is the number of years.

For example,  if the NAV of a mutual fund increased from ₹100 to ₹150 over three years:

CAGR = [(150/100)^⅓] – 1 

This will come approximately 0.1447 or 14.47%. In this way, you can calculate returns for all mutual funds.

This formula helps you understand the average annual growth rate of your investment over a specified period.

How to Choose Best Mutual Funds With Good Returns for Investing?

Choosing the best mutual funds with good returns can be a strategic decision that involves careful consideration of various factors. Here are steps you might consider to make an informed choice:

  1. Define Your Investment Goals: Identifying your financial objectives can guide your selection of mutual funds. Whether you seek long-term growth, income, or a combination of both, aligning your goals with the fund’s strategy is crucial.
  2. Research Fund Performance: Evaluate funds with a history of strong performance. You can look for the best mutual fund returns over the last 10 years to understand how the fund has managed market fluctuations.
  3. Assess Risk Tolerance: High-return mutual funds often come with higher risk. It is important to ensure that the fund’s risk profile matches your risk tolerance. This might include examining the fund’s volatility and how the most return mutual fund has performed in downturns.
  4. Check Fund Manager’s Track Record: The experience and track record of the fund manager can significantly impact the fund’s performance. Funds managed by seasoned professionals with a history of delivering good returns can be more reliable.
  5. Understand Fees and Expenses: Mutual fund returns can be affected by the fees and expenses associated with the fund. Comparing the expense ratios of different funds can help you choose the best return mutual funds in India that offers good returns without high costs.
  6. Diversify Investments: Diversification can help manage risk. You might consider spreading your investments across various funds to balance potential returns and risks.

Who Should Invest in High Return Mutual Funds?

Investing in high-return mutual funds may not be suitable for everyone. Here are some personas that might find these funds appropriate:

  1. Young Professionals: Individuals early in their careers might seek high returns to build wealth over time. With a longer investment horizon, they can potentially ride out market volatility.
  2. Risk-Tolerant Investors: Those comfortable with market fluctuations and willing to accept higher risks for the possibility of higher returns might find these funds attractive.
  3. Experienced Investors: Investors with a good understanding of market dynamics and mutual funds might choose high-return funds to diversify their portfolios.
  4. Long-Term Planners: Individuals planning for long-term goals, such as retirement, might invest in high-return mutual funds to maximise their wealth accumulation.
  5. Wealth Accumulators: Those with a focus on growing their wealth quickly might prefer high-return mutual funds despite the risks involved.

Risks Involved While Investing in a Mutual Fund With Good Returns

While high-return mutual funds can offer significant rewards, they also come with certain risks:

  1. Market Risk: The value of investments can fluctuate due to market conditions, affecting the mutual fund returns of even the best high return mutual funds.
  2. Credit Risk: If the fund invests in debt securities, there is a risk that the issuer might default on payment, impacting the fund performance of even the best returns mutual funds.
  3. Liquidity Risk: Some of the highest return mutual funds invest in assets that are not easily sold, leading to liquidity risk and difficulties in liquidating positions without affecting the price.
  4. Interest Rate Risk: Changes in interest rates can impact the returns of funds that invest in bonds or other fixed-income securities.
  5. Management Risk: The fund’s performance is also dependent on the decisions made by the fund manager. Poor decisions can lead to lower returns in even the highest returns mutual funds.

Taxation of Mutual Funds as per the Union Budget 2024-25

The taxation on capital gains from your high returns mutual funds is based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. It may be important to learn about these revisions when considering mutual funds with good returns. These changes include:

Equity Mutual Funds

  • Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
  • Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:
  1. Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
  2. Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
  3. Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.

Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.

Capital Gains TaxHolding PeriodOld RateNew Rate 
Short-Term Capital Gains (STCG)Less than 12 months15%20%
Long-Term Capital Gains (LTCG)More than 12 months10%12.50%

Debt Mutual Funds

  • Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
  • Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds, including:
  1. Tax Rate: A flat 12.5% tax rate applies to these gains.
  2. No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.
  • Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG. 
Capital Gains TaxHolding PeriodOld RateNew Rate 
Short-Term Capital Gains (STCG)Less than 36 monthsTaxed according to your income tax slabTaxed according to your income tax slab
Long-Term Capital Gains (LTCG)More than 36 months10%12.50%

Hybrid Mutual Funds

Short-Term Capital Gains (STCG)

The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:

  • Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
  • Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.

Long-Term Capital Gains (LTCG)

The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:

  • Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
  • Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.
Type of Hybrid  FundShort-Term Capital Gains (STCG)Long-Term Capital Gains (LTCG)Indexation Benefit
Equity-Oriented Hybrid Funds20% for holdings less than 1 year12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-freeNot available
Debt-Oriented Hybrid FundsTaxed as per income tax slab for holdings less than 3 years12.5% for holdings over 3 yearsNot available

Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Factors to Consider While Investing in the Best Return Mutual Fund

When investing in top return mutual funds, you might consider the following factors:

  1. Investment Objective: You may want to align the mutual fund’s objective with your financial goals. Whether you seek growth, income, or capital preservation, choosing a fund that matches your needs can be important.
  2. Historical Performance: Reviewing the fund’s past performance, especially the average mutual fund return, might provide insights into its potential future performance.
  3. Expense Ratio: Lower expense ratios can enhance overall returns. Comparing the expense ratios of similar funds can help you evaluate cost efficiency.
  4. Fund Manager Experience: The expertise and experience of the fund manager might significantly influence the fund’s performance.
  5. Risk-Adjusted Returns: Evaluating how much risk the fund takes to achieve its returns can be crucial. A fund with high returns but even higher risk might not be suitable for all investors.
  6. Portfolio Diversification: Ensuring the fund invests in a diversified portfolio might help manage risks and improve the chances of stable returns.

To Wrap Up…

Investing in high-return mutual funds requires careful consideration of various factors, including your financial goals, risk tolerance, and investment horizon. By conducting thorough research, evaluating historical performance, and understanding the risks and taxation involved, you can make informed decisions that align with your investment strategy. Remember to regularly review your portfolio and adjust as necessary to stay on track with your financial objectives.

Most Popular Mutual Funds:

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Frequently Asked Questions About Best Return Mutual Fund

1. What is the best return mutual fund?

The best return mutual fund varies depending on individual goals, risk tolerance, and market conditions. Researching funds with a history of strong performance can help you find suitable options.

2. How are mutual fund returns calculated?

The Compound Annual Growth Rate (CAGR) formula commonly calculates mutual fund returns. This formula measures the mean annual growth rate of an investment over a specified period.

3. Are high-return mutual funds suitable for beginners?

High-return mutual funds can be risky and might not be suitable for beginners who are not familiar with market dynamics. Beginners might consider starting with more stable funds.

4. What is the average rate of return on mutual funds?

The average rate of return on mutual funds can vary widely based on the type of fund and market conditions. Historical averages might serve as a benchmark, but they do not guarantee future performance.

5. Who should invest in high-return mutual funds?

High-return mutual funds might be suitable for young professionals, risk-tolerant investors, experienced investors, long-term planners, and those focused on wealth accumulation.