Building wealth rapidly means finding the very best mutual funds that will deliver stellar returns versus average return. In the current market landscape in India, several funds have returned over 30%, thus placing them as standouts for any investor seeking high growth and aggressive opportunities. Below will be an elaboration on these four schemes for a deeper view.
Quant Small Cap Fund: Awesome Five-Year Growth
Among all schemes, the Quant Small Cap Fund had the best performance. If you had invested a mere ₹10,000 as SIP monthly for five years, it would have nearly grown into ₹1.8 crore having an XIRR of over 46%. It is, therefore, placed at the very top of small-cap equity returns. It offers high growth potential but with relatively high risk, so this fund is best suited for long-term risk-tolerant investors.
The Quant Infrastructure Fund: The Might of Sectoral Funds
Infra grows at a breakneck speed, and the Quant Infrastructure Fund is a living example of this growth. Giving a CAGR return of approximately 33.4% in the five-year period, the scheme has indeed beaten many sectoral and even broader market funds. It stands as a testament to India’s infrastructure emphasis.
Bandhan Small Cap Fund: Very Consistent Small-Cap Performer
Another small-cap favorite, Bandhan Small Cap Fund, has been an avenue that consistently gave high returns. With the five-year CAGR nearing 33%, the fund has actually rewarded disciplined investors with great growth. It is surely a worthy choice among small-cap schemes with high returns.
Nippon India Small Cap Fund: The Large AUM Champion
The Nippon India Small Cap Fund operates with a humongous asset base against a five-year CAGR of just below 30.7% and gives both scale and performance. It offers an attractive trade-off of high returns with stable fund management, making it interesting for investors looking for Large-Cap SAFETY within high-growth potential.
What Drives These Exceptional Returns?
This particular set of funds thrives in the areas of small-cap and infrastructure—domains usually synonymous with higher volatility but stronger long-term trajectories. The Quant Small Cap and Bandhan Small Cap Funds gained from the growth trajectory of mid-sized companies. On a similar note, the Quant Infrastructure Funds sculpted their performance around India’s infrastructure modernization thrust.
Things to Consider Before Investing
Although these funds are proven to exhibit a fine track record, past returns by no means guarantee future outcomes. Small-cap and infrastructure funds are prone to swings in the market and call for an abundance of patience and emotional discipline. Diversification across different categories—for example, large-cap, flexi-cap, or hybrid funds—can help balance risk. For a typical investor, investing a portion into these high-growth funds and then putting their basic stake in more stable categories would be a smart investment.
Final Thoughts
These four mutual funds have some impressive historical performance, each capable of delivering a CAGR in excess of 30%. However, selecting a fund has to be looked at from the familiarity of the willing risk taken, time-frame within which the person wants to cultivate funds, and the overall financial goals of the investor.