Financial planners often call for investments into tried and tested funds over newer funds. A select few schemes have stood the test of time, while delivering notable returns. These funds have navigated the market's ebbs and flows for a quarter-century or more.
With mutual funds first launched in India in 1963 and privatisation kicking off in 1993, this milestone marks a significant journey for over 48 equity schemes. Among these time-tested names with a sizable asset under management of over Rs 25,000 crore include the HDFC Flexi Cap Fund, SBI Contra Fund, HDFC Large Cap Fund, Nippon India Growth Fund, and Quant Small Cap Fund.
Five Funds With A Quarter-Century Record
According to Abhishek Mehta, the chartered financial analyst at Investza Capital, the HDFC Flexi Cap Fund stands out with over Rs 75,000 crore in AUM, launched way back on Jan. 1, 1995.
"They have delivered notable and staggered returns over the years," Mehta explains. HDFC Flexi cap fund has been managed by the legendary manager, Prashant Jain but the fund manager alone is not responsible for these returns.
"When it comes to large institutions like HDFC, its not just one fund manager that manages the entire fund. Its the policies, the process, the chief investing officer, economist and so many other people that manage and take calls for the entry and exit of the fund and its evident in the returns that it generates," he explains.
The SBI Contra Fund, Mehta points out, thrives on its contrarian strategy, taking the opposite calls on sectors when the market moves in one direction. Similarly, the Nippon India Growth Fund, though transitioning from its Reliance origins to Nippon, has consistently adhered to its foundational philosophy, delivering consistent returns.
Mehta, however, noted that the Quant Small Cap Fund has recently underperformed, a trend he attributes to the broader underperformance of the small-cap category. This serves as a reminder for investors to regularly review their portfolios, he added.
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