Top 6 Equity Funds: 25%+ Returns for 3-Year Goals

If you are planning to invest your money for a three-year horizon, six equity mutual funds have shown impressive performance, delivering over 25% returns in the last three years.

Key Fund Performance Highlights

• ITI Small Cap Fund: Achieved a 27.04% return, with an AUM of Rs 3,454 crore, a four-star rating, and an expense ratio of 0.86%.
• Bandhan Small Cap Fund: Recorded the highest return at 26.47%, managing an AUM of Rs 31,103 crore, holding a five-star rating, and an expense ratio of 0.60%.
• HSBC Midcap Fund: Delivered 26.32% returns, with an AUM of Rs 15,578 crore, a four-star rating, and an expense ratio of 1.19%.
• Invesco India Mid Cap Fund: Showed strong performance with 25.69% returns, an AUM of Rs 14,721 crore, a four-star rating, and an expense ratio of 0.76%.
• LIC MF Infrastructure Fund: Provided 25.42% returns, with an AUM of Rs 1,144 crore, a four-star rating, and an expense ratio of 1.34%.
• UTI Healthcare Fund: Posted 25.04% returns, with an AUM of Rs 1,370 crore, a five-star rating, and an expense ratio of 1.27%.

These funds represent a mix of small-cap, mid-cap, and sector-specific strategies, each demonstrating significant growth over the specified period. Understanding their individual metrics can help you make informed decisions for your financial goals.

Understanding Small-Cap Potential

The small-cap category featured two strong performers: the ITI Small Cap Fund and the Bandhan Small Cap Fund. The Bandhan Small Cap Fund, with its substantial Rs 31,103 crore AUM and a five-star rating, led this group with a 26.47% return, highlighting its efficiency with a low expense ratio of 0.60%.

Exploring Mid-Cap Growth

For those considering mid-cap exposure, the HSBC Midcap Fund and Invesco India Mid Cap Fund both delivered returns exceeding 25%. The HSBC Midcap Fund achieved 26.32%, while the Invesco India Mid Cap Fund posted 25.69%, both holding four-star ratings, indicating consistent performance within their segment.

Sector-Specific Opportunities

If you’re looking at focused investments, the LIC MF Infrastructure Fund and UTI Healthcare Fund offer compelling returns. The LIC MF Infrastructure Fund delivered 25.42%, and the UTI Healthcare Fund achieved 25.04%, both with four or five-star ratings, reflecting strong performance in their respective sectors.

These funds offer a clear picture of strong historical performance over a three-year period, making them noteworthy options if you’re planning for similar investment timelines.