3 Best Mutual Funds 2024 | Fastest Growing Funds in Last 5 Years

In India, money flowing into mutual funds is growing every year. Today, we’ll look at the three fastest-growing mutual funds from the last five years. We’ll also explore one aspect that is common among these funds.

NOTE:
Please note that the data used in this analysis is only up to October 26, 2024. Future performance of the funds may vary.

NOTE:
This is for learning purposes only. Please make investment decisions based on your own research.

In third place is the Motilal Oswal Midcap Fund. This fund grew at a rate of 34.17% per year. If you had invested ₹1 lakh five years before October 26, 2024, it would have increased in value to around ₹4.3 lakhs, a growth of 334.79%.

In second place is the Nippon India Small Cap Fund. It grew by 37.25% per year, which is 3% more than the Motilal Oswal Midcap Fund. Your ₹1 lakh would have grown to ₹4.9 lakhs, almost a five-fold increase, or 387.04%.

In first place is the Bank of India Small Cap Fund. This fund grew by an impressive 38.81% each year. Each ₹1 lakh invested would have become ₹5.1 lakhs, representing a true five-fold return of 415.35%.

So, what do these funds have in common? All three focus on small and mid-sized companies, which can grow faster but are also riskier. Small-cap funds often fluctuate more than large-cap funds, but many investors like them for their growth potential. As Peter Lynch once expressed, small companies move big, while big companies move small. This may also apply to mutual funds. Remember to consider the risks carefully if you decide to invest. Do your own research and make decisions based on confidence in your analysis, not just external advice.