ETMutualFunds looked for 10 equity schemes that grew investors’ wealth in 10 years. The top 10 equity schemes offered returns of 17-23% in 10 years. We considered pure equity schemes such as large cap, mid cap, small cap, large & mid cap, multi cap, and flexi cap schemes. We calculated XIRR returns for the period starting from April 10, 2013 to April 10, 2023.
Not surprisingly, six small cap schemes figured in the list. Small cap schemes are extremely risky and volatile. However, they also have the potential to offer superior returns over a long period of time. The performance record of these schemes in 10 years proves that they indeed can create wealth for investors- provided they invest in a disciplined manner. One multi cap, mid cap, large & mid cap, and flexi cap scheme also figured in the list. These schemes are relatively less risky than small cap schemes. Flexi cap schemes are typically recommended to moderate investors. However, mid cap, multi cap, large & mid cap schemes are recommended to aggressive investors with high risk appetite as they invest in mid cap stocks. These stocks are risky and volatile but they are marginally stable than small cap stocks.
ETMutualFunds always tell our readers to avoid focusing on returns while choosing a mutual fund scheme to invest. Always focus on your goals, investment horizon, and risk profile, and choose schemes that match your profile. Note, the purpose of this exercise is to tell readers that if they invest a small amount of money regularly over a period of time in the stock market, they can create wealth to take care of their long-term goals.
