? Cool Title, but what’s the news?
23 equity mutual fund schemes tripled investors wealth in a period of five years. 17 midcap schemes, five multicap schemes and a largecap scheme made it to the list.
? Okay, but what does it mean?
In other words, if an investor had invested Rs 1 lakh in the scheme in May 2013, s/he would have amassed Rs 3,90,000 rupees at the end of April 2018. In the same time period, the benchmark index, S&P BSE Sensex, generated a 78 per cent return and BSE Midcap index gave 166 per cent return.
? Why should I care?
There are two important things that can be taken away from this really interesting piece of news.
One, that mutual funds are becoming a lucrative asset class for all levels of investors. And this proves that mutual funds can generate exceptionally high returns in a relatively short period of times, and they’re already proven to be excellent long-term investment options.
Two, is that it challenges the whole concept of building the perfect portfolio. While having a balanced portfolio is important to negate losses, but had you picked any one of these 23 schemes, returns would’ve been exceptional.
Source: Economic Times