MUTUAL FUNDS THAT HAVE MADE YOU RICH

An investment of one rupee in DSP BlackRock Micro Cap Fund, Franklin India Smaller Companies (Franklin Small Cos) or Reliance Small Cap Fund in 2012 would have grown 3.7 times in five years. A similar investment in the Nifty or Sensex would have yielded a return of 60 per cent. Several actively-managed mutual fund (MF) schemes have beaten the benchmark indices by a huge margin in the past one, three and five years as well. MF schemes, particularly the ones focused on small- and midcaps, have generated superior returns across various time frames. Other best-performers include thematic schemes such as DSP BlackRock Natural Resources and New Energy (DSP NRNE), Sundaram Rural India, and Franklin Small Cos, apart from offshore fund HSBC Brazil. DSP Micro has been one of the best-performing schemes over a period of two, three, and five years. Currently, the scheme is not accepting fresh inflows owing to limited opportunities following a steep rally in the stock prices. Given the rally in market, it is unlikely that many schemes will continue to generate 25-30 per cent annualised returns, say fund managers. Although large-cap focused schemes are not in the best-performing list, experts say it would be advisable to consider them now. DSP NRNE HSBC Brazil SBI Magnum Comma ICICI Pru Banking & Fin Serv L&T Emerging Businesses DSP BlackRock Micro Cap SBI Small & Mid Cap Sundaram S.M.I.L.E Reliance Small Cap Canara Emerging Equities DSP BlackRock Micro Cap Franklin Small Cos Reliance Small Cap SBI Small & Mid Cap Mirae Emerging Bluechip 1,77,280 1,71,560 1,58,420 1,55,350 1,50,130 2,90,340 2,75,460 2,68,736 2,65,674 2,61,381 3,66,322 3,62,383 3,59,173 3,55,296 3,55,158