Top two oldest mutual funds with 25 per cent CAGR returns in 10 years

If you had a SIP of Rs 10,000 in this fund, your corpus would have reached Rs 59,18,095 over the past 10 years.

While past performance is not indicative of future results, investors are always interested in funds with a long history of strong returns. This article explores two mutual funds with launch dates exceeding 10 years: Nippon India Small Cap Fund and SBI Small Cap Fund.

We'll dive into their performance history and analyse if they've consistently delivered a 25 per cent compound annual growth rate (CAGR) over the past decade. It's important to remember that chasing past returns can be risky.

There are only two funds that have given more than 25 per cent returns in 10 years given below:

Nippon India Small Cap Fund, previously known as Reliance Small Cap Fund, is a flagship offering from Nippon India Mutual Fund. Launched on September 5, 2010, it falls under the Equity: Small Cap category.

As of the latest available data, it has a Total Expense Ratio (TER) of 1.52 per cent. One of the key highlights of this fund is its impressive Compound Annual Growth Rate (CAGR) since inception, standing at 21.58 per cent, significantly surpassing the benchmark's CAGR of 16.61 per cent. This remarkable performance is reflected in its NAV, which stood at Rs 141.2247 as of March 31, 2024.

In terms of portfolio performance, the fund has outshined the broader market represented by the NIFTY 50 TRI, with an impressive outperformance of 58.10 per cent compared to the benchmark's 30.67 per cent in a year.

When considering risk-adjusted returns, the fund exhibits a Standard Deviation of 14.34, indicating a moderate level of volatility. However, its Sharpe Ratio of 1.88 suggests that it has historically provided attractive returns relative to the level of risk taken. Additionally, the fund's Alpha of 8.89 reflects its ability to generate excess returns beyond what would be expected based on its level of risk, while its Beta of 0.8 indicates that it is less volatile than the market as a whole.

Furthermore, for investors considering long-term wealth creation through systematic investment planning (SIP), the fund has demonstrated its potential, with a Rs 10,000 SIP growing to an impressive Rs 59,18,095 over the past 10 years.

SBI Small Cap Fund, a part of SBI Mutual Fund, has been a standout performer in the realm of equity investments since its inception on September 5, 2009. Falling under the Equity: Small Cap category.

Its total assets as of February 29, 2024, stand at Rs 25,524.56 crore.

Despite the inherent volatility associated with Small-Cap investments, the Compounded Annual Growth Rate (CAGR) of 20.34 per cent since its inception, significantly outpacing its benchmark, which stands at 12.45 per cent.

The NAV (Net Asset Value) of the fund as of March 31, 2024, was Rs 148.3524. Its turnover ratio of 12 per cent indicates a judicious approach to portfolio management.

For instance, a Rs 10,000 SIP (Systematic Investment Plan) initiated ten years ago has grown to an impressive Rs 55,76,284, reflecting the wealth-building potential of consistent investment in quality small-cap equities.

Furthermore, the fund's risk-adjusted performance metrics portray its ability to generate returns relative to the risk taken. With a Standard Deviation of 11.38, indicating the volatility of returns, and a Sharpe Ratio of 1.54, which measures the risk-adjusted return, the fund has exhibited favorable risk-adjusted performance. Additionally, its Alpha of 3.82 and Beta of 0.61 further emphasize its ability to generate excess returns over the benchmark while maintaining a lower risk profile.

Disclaimer: The article is for informational purposes only and not investment advice.