If you’re planning to build long-term wealth, the stock market’s recent volatility might make you hesitate. The Nifty and Sensex have pulled back from their record highs, while mid-cap and small-cap segments have seen corrections due to profit booking and high valuations. But don’t let this shake your confidence.
Amid all the noise, Systematic Investment Plans (SIPs) in well-chosen mutual funds continue to deliver impressive returns for disciplined investors. Here are five mutual funds that have turned small investments into massive wealth over the past decade. You may want to add them to your research list.
🥇 Nippon India Small Cap Fund: Riding the Underdog Rally
Since its launch in September 2010, this fund has delivered a stunning 23.52% CAGR over the last 10 years. It focuses on under-the-radar companies with strong growth potential and is known for its quick recovery after market corrections.
- Top Holdings: HDFC Bank, MCX, Dixon Technologies
- Core Sectors: Capital Goods (11.9%), Healthcare (8.2%), Chemicals (7.7%)
- Fund Size: ₹58,028 crore
The fund has shined particularly after the COVID crash and again in 2023, proving its resilience.
🏦 SBI Small Cap Fund: Stability with Consistency
Launched in September 2009, this fund has grown with a strong focus on scalable and quality companies. It has delivered 22.61% CAGR in 10 years, making it a favorite among conservative investors.
- Top Holdings: SBFC Finance, DOMS Industries, KIMS
- Core Sectors: Financials (8%), Capital Goods (7.5%), Chemicals (7.4%)
- Fund Size: ₹31,790 crore
It strikes a balance between risk and return, offering smoother rides during volatile phases.
🧭 Motilal Oswal Midcap Fund: Quality Comes First
This fund follows the QGLP framework (Quality, Growth, Longevity, Price), which filters companies with strong fundamentals. Launched in February 2014, it has provided a 21.17% CAGR over 10 years.
- Top Holdings: Persistent Systems, Coforge, Kalyan Jewellers
- Core Sectors: IT (25.6%), Jewelry (8.1%), Electricals (7.9%)
- Fund Size: ₹27,780 crore
Its high IT allocation has driven performance, especially during the post-COVID tech boom.
🧨 HSBC Small Cap Fund: Rebranded, But Rock Solid
Previously known as L&T Emerging Businesses Fund, it was rebranded after HSBC took over in 2022. Yet, it has maintained its performance streak with a 21.16% CAGR in the past decade.
- Top Holdings: K.P.R. Mill, Neuland Labs, Aditya Birla Real Estate
- Core Sectors: Financials (11.4%), Healthcare (8%), Capital Goods (7.6%)
- Fund Size: ₹14,737 crore
Despite the name change, the strategy remains robust—focused on small firms with breakout potential.
🧠 Axis Small Cap Fund: Conservative Yet Competitive
If you prefer a low-risk strategy without compromising on quality, Axis Small Cap Fund fits the bill. With a 20.74% CAGR in 10 years, this fund avoids speculative bets and sticks to companies with solid balance sheets.
- Top Holdings: KIMS, Cholamandalam Finance, Blue Star
- Core Sectors: Healthcare (11.3%), Financials (10.9%), IT (6.5%)
- Fund Size: ₹23,318 crore
It performs well even in volatile markets due to its high-quality portfolio.
📝 Final Word: Should You Invest?
Each of these funds has outperformed the market and rewarded patient investors through SIPs. But mutual fund investing isn’t just about chasing returns. It’s about matching your financial goals, risk appetite, and investment horizon.
Before investing:
- Set your financial goals clearly
- Understand the fund’s strategy
- Consult a financial advisor
- Stick to SIPs for long-term wealth building
These mutual funds have proven that disciplined investing over time can turn modest contributions into life-changing wealth. Add them to your watchlist, do your due diligence, and let the power of compounding do the rest.
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The information provided here is ai generated and for general information and educational purposes only. It is not intended to be personalized investment advice, nor should it be considered as a solicitation to buy or sell any security or financial product.
