This Mutual Funds is all set to give more than 80% of returns

This Mutual Funds is all set to give more than 80% of returns

Shivani Bhati | May 17, 2022 | Views 43469

This Mutual Funds is all set to give more than 80% of returns

This Mutual Funds is all set to give more than 80% of returns

Despite the fact that the world economy is suffering from increasing inflation and Covid-19-related pressures, the Indian equities market has provided excellent returns to its investors. Mutual fund investments are included in this list of equity investments. Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth plan, an equity small-cap index fund, has quadrupled its clients’ money in the previous two and a half years.

Choosing the correct schemes and fund houses may make a huge impact in an investor’s profits, as evidence shows that even big cap schemes can produce alpha. According to statistics gathered by Prime Database, Invesco’s large-cap fund was the best performer in the category in financial year 2022, delivering returns of 24.46 percent against a 17.07 percent rise in the BSE Sensex.

Alpha return for investors

Since its debut on September 6, 2019, this mutual fund equities small-cap index strategy has provided alpha to its clients. It has earned a near 26% absolute return for its investors over the last year, compared to a 12.20% category average return. In the previous two years, however, this mutual fund plan has provided the highest return in its category. It has returned 105.75 percent absolute over the last year, compared to 43.50 percent on average for the category. This mutual funds equities small-cap index plan has earned a total return of more than 102 percent from its commencement on September 6, 2019, compared to a category average return of around 32.50 percent.

Mutual funds’ return Investors in SIPs

For those mutual fund investors who invested in the Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth plan through the Systematic Investment Plan (SIP) mode, this equity small-cap index plan generated around 4.70 percent absolute return and 8.85 percent annualised return in the previous year, and more than 50% absolute return and around 45 percent annualised return in the previous two years.

Aside from Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth, there are a few other equities small-cap index plans that have provided excellent returns to their clients. Nippon India Nifty Smallcap 250 Index Fund Direct Growth and Invesco India Smallcap Fund Direct Growth are two of them. According to Value Research, the Nippon India Nifty Smallcap 250 Index Fund Direct Growth plan returned 26.76 percent in one year, while the Invesco India Smallcap Fund Direct Growth plan returned 29.26 percent.

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The views expressed are strictly of the author. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation by Author or Studycafe. Neither the author nor Studycafe and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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