The Indian mutual fund industry is on a remarkable growth trajectory, with assets under management (AUM) doubling over the past five years, growing from Rs 22.26 lakh crore in 2019-20 to Rs 66.7 lakh crore in August 2024. Predictions for the year point to sustained momentum, driven by rising retail participation, favorable market conditions, and robust inflows into equity mutual funds.
Large-cap funds are expected to attract more interest as investors seek safer options amid market valuation concerns. Sectoral and thematic funds, focusing on high-growth industries like technology, healthcare, and renewable energy, are also anticipated to perform well, making mutual funds a key wealth creation tool for long-term investors.
Vivek Goel, Joint MD of Tailwind Financial Services, emphasizes the potential of these funds in achieving financial goals through disciplined investing.
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“The impressive growth of mutual funds over the last decade reflects the strength of the Indian market and wealth creation opportunities available for long-term investors. Funds like Nippon India Small Cap, with a 10-year return of 23.5%, and Motilal Oswal Midcap Fund, yielding 21.6%, demonstrate the potential of small- and mid-cap investments in capturing substantial gains across market cycles. The performance also underscores the importance of efficient fund selection in achieving desired goals,” Goel says.
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“At Tailwind Financial Services, we emphasize the value of consistent returns over time, and these figures highlight our belief in mutual funds as a robust vehicle for wealth creation. With disciplined investment, a well-diversified portfolio can outperform and safeguard against volatility,” he adds.
He shares insights on the wealth creation opportunities available for long-term investors. As seen in the table below, top-performing mutual funds have delivered stellar returns over both 5 and 10-year periods, illustrating the long-term gains achievable through strategic investments.
| Fund Name | 5 Year Return (%) | 10 Year Return (%) |
| Nippon India Small Cap Fund | 36.6 | 23.5 |
| SBI Small Cap Fund | 29.1 | 22.7 |
| Quant Small Cap Fund | 47.4 | 21.9 |
| Motilal Oswal Midcap Fund | 32.4 | 21.6 |
| Quant Flexi Cap Fund | 35.5 | 21.2 |
| Edelweiss Mid Cap Fund | 30.9 | 20.8 |
| Quant Active Fund | 32.01 | 20.71 |
| Quant Large & Mid Cap Fund | 28.8 | 20.7 |
| Kotak Small Cap Fund | 32.4 | 20.6 |
| Axis Small Cap Fund | 29.4 | 20.6 |
| HSBC Small Cap Fund | 31.0 | 20.4 |
| DSP Small Cap Fund | 31.2 | 20.4 |
| Quant Infrastructure Fund | 37.9 | 20.4 |
| Kotak Emerging Equity Fund | 28.5 | 20.3 |
| Mirae Asset Large & Midcap Fund | 23.35 | 20.09 |
Source: Valueresearch as of 24th Sep 2024
All returns are for regular plan and growth option of respective schemes.