Equity mutual fund investors must select the proper schemes based on their financial goals. Many mutual fund schemes have delivered good returns, attracting more investors.
Market experts recommend mid-cap equity funds because they offer good returns. These funds typically include stocks ranked between 100 and 250 in size within the mid-cap category, with moderate risk.
They are known to provide better returns than large-cap funds, although losses are possible. However, it is essential to be prepared for potential losses. Those who invest for the long term, at least ten years, are likely to receive good returns.
One mid-cap fund to consider is the SBI Magnum Midcap Fund, a subsidiary of the State Bank of India (SBI). This fund has delivered impressive returns over the past 3, 5, and 10 years.
As of October 10, 2024, the fund has achieved a maximum annualized return of over 30 percent. It has provided annual returns of 22.17 percent over the last three years and 30.72 percent in the previous five years. Over the past ten years, it has delivered annual returns of 18.93 percent.
For instance, if a systematic investment plan (SIP) of Rs. 10,000 per month were initiated five years ago and continued regularly until now, the investment would have grown to Rs. 6 lakhs.
With a 30 percent annual return, the interest alone amounts to over Rs. 7.93 lakhs, resulting in a total of over Rs. 13.93 lakhs at maturity. If the SIP is continued at the same rate for ten years, the value would exceed Rs. 35 lakhs, given the scheme’s annual returns of 18.93 percent.
However, it’s important to note that future results cannot be guaranteed for those considering mutual fund investments. It’s crucial to invest only after fully understanding all aspects.