Investing in Mutual Funds Made Easy for NRIs
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Today, many investors want to double their investment quickly, which often leads them to Ponzi schemes and ultimately erodes their capital. If you are an investor and want a safe way to double your money, Mutual funds are the best option available today.
The Indian mutual fund industry has demonstrated remarkable resilience and growth over the past three years, driven by a robust equity market rally and economic recovery post-pandemic. Several mutual funds have not only delivered exceptional returns but also doubled investors’ wealth within this period.
According to data from AMFI and industry experts, some funds have generated an average annual return exceeding 25% CAGR, significantly outpacing broader market indices like the NIFTY 50 and Sensex.
Let's look at the top 10 Indian mutual funds that have delivered doubled investments over the last three years.
What Is A Mutual Fund?
A mutual fund is a professionally managed investment vehicle by an Asset Management Company (AMC) that pools money from investors to purchase a diversified portfolio of stocks, bonds, or other securities according to the fund's stated strategy.
List Of Mutual Funds That Doubled Investors Wealth In 3 Years
10 mutual funds that doubled wealth in the last 3 years for investors are:
Why Are These Funds Exceptional?
- Focused on High-Growth Sectors
Most of these funds concentrated on small-cap, mid-cap, or sectoral themes, which have shown exponential growth in the past three years, capitalizing on India's economic recovery and bullish equity trends. - Outperformance vs. Benchmark
These funds consistently beat their respective indices (e.g., NIFTY Small Cap 250, NIFTY Mid Cap 150, BSE India Infrastructure) due to superior stock-picking strategies, disciplined management, and tactical allocation. - Long-Term Wealth Creation
While highly volatile in the short term, these funds are tailored for long-term investors who can withstand market fluctuations to reap significant returns. - Emerging Market Resilience
India’s robust small and mid-cap ecosystem provided these funds with ample opportunities to invest in businesses that have a disruptive potential.
Why Should NRIs Invest In Mutual Funds?
There are multiple reasons why NRIs should invest in mutual funds in India. The most compelling one - participating in India’s growth story. You can easily invest through your NRE/NRO bank accounts without any hassle. Here are some reasons why mutual funds can be a great investment for your portfolio -
- Diversification: Mutual funds provide an efficient way for NRIs to diversify their investments in a mix of asset classes, such as equity, debt, hybrid, etc. They cover most major asset classes and sectors.
- Professionally Managed: The asset management company hires fund managers with years of experience to make informed investment decisions, ensuring optimal portfolio performance.
- Convenience and Affordability: NRIs can invest and redeem mutual funds online through user-friendly platforms like iNRI. With Systematic Investment Plans (SIPs), investments start as low as Rs 5,000.
- Low Costs: Mutual fund-associated costs are much less than those associated with a direct stock investment. The AMC charges expense fees for managing the assets in mutual funds, whereas in equities, there are various charges, such as transaction costs, Securities Transaction Tax, stamp duty, etc.
- Potential for higher returns: India has become a significant investment destination due to its economic growth, which is expected to continue. Equity, flexi and multi-cap mutual funds have delivered significant returns in the long run, making them the most desired investment option.
- Liquidity: Mutual funds offer high liquidity, allowing NRIs to buy or sell units quickly. Mutual funds are a flexible investment option compared to other asset classes like real estate or fixed deposits. However, it's important to note that some mutual funds may impose an exit load if redeemed within a specified period.
- Deductions in Tax: Some mutual funds, such as Equity Linked Savings schemes (ELSS), offer a tax deduction under section 80C of the Income Tax Act, 1961. NRIs can claim a deduction of up to ₹1.5 lakh in a financial year, reducing their taxable income in India. However, this deduction is available only if filing taxes as per the Old tax regime.
- Well Regulated: Mutual funds in India are governed by the Securities and Exchange Board of India (SEBI), which ensures transparency, fairness, and investor protection. SEBI enforces stringent regulations, including mandatory disclosures, risk management practices, and periodic reporting, to safeguard investor interests and maintain trust in the system.
How Can iNRI Help?
iNRI is a one-stop solution for all the problems an NRI faces when investing in mutual funds in India. We help in setting up NRE/NRO accounts, apply for PAN/OCI cards, assist in tax returns, etc.
Through iNRI, NRIs can easily invest in the mutual fund market in India from the comforts of their homes and enjoy high returns from Indian markets.
Conclusion
Investing in mutual funds that double wealth in three years is a dream for every investor. However, it’s essential to remember that such funds usually involve higher risk, making them suitable only for investors with a high risk tolerance and long-term goals.
While past performance does not guarantee future returns, the underlying strategies and sectors driving these funds' exceptional growth offer insights into India’s evolving investment landscape.
With the advantages of professional management, diversification, and relatively lower risk, mutual funds are an ideal investment choice for NRIs seeking both convenience and long-term financial growth. If you are an NRI and want to be part of India's growth story, invest in mutual funds through iNRI.
Frequently Asked Questions(FAQs): 10 Mutual Funds That Doubled Wealth In The Last 3 Years
Which mutual funds in India doubled wealth in the last 3 years?
The top 10 mutual funds in India by performance, which doubled wealth in the last 3 years, are:
- Motilal Oswal Mid Cap Fund
- Invesco India PSU Equity Fund
- DSP India T.I.G.E.R. Fund
- LIC MF Infrastructure Fund
- Bandhan Infrastructure Fund
- Canara Robeco Infrastructure Fund
- Bandhan Small Cap Fund
- Nippon India Small Cap Fund
- Kotak Infrastructure and Economic Reform Fund
- Invesco India Infrastructure Fund
How do I invest in high-growth mutual funds?
First, identify funds with a strong track record and a skilled fund manager who aligns with your investment objectives. If needed, consult a financial advisor for guidance, and invest conveniently through trusted online platforms like iNRI.
What are the top performing mutual funds in India?
Some of the top-performing and high return mutual funds in India that have doubled investors wealth in the last three years include Motilal Oswal Mid Cap Fund, Invesco India PSU Equity Fund, DSP India T.I.G.E.R. Fund , LIC MF Infrastructure Fund, and Bandhan Infrastructure Fund.
Can mutual funds double your investment?
Yes, investing in the right mutual fund can help you double your investment. There are some best-performing mutual funds in the last three years have doubled investors' money.
Are high-return mutual funds riskier?
Yes, high-return mutual funds tend to be riskier, as they often invest in volatile asset classes like equities, particularly those with higher growth potential.
What is the average annual return for top-performing mutual funds?
The average return depends on market conditions, fund category, and investment strategy. In the long run, the average annual return for top-performing mutual funds is around 10-15%. Equity mutual funds have delivered competitive returns in the past few years.
How do I select mutual funds with strong past performance?
While past performance can be a helpful indicator, it shouldn't be the sole criterion for selecting a mutual fund. Other essential factors are the fund manager's expertise, expense ratio, tracking error, fund size, liquidity, etc.
Can SIPs in mutual funds generate wealth over time?
Yes, SIPs in mutual funds can generate wealth over time. Since they invest in equity markets, the potential to generate wealth is high. Further, due to the power of compounding, the benefits of rupee cost averaging, and expert professional management, mutual funds are a convenient asset class for generating wealth.
What types of mutual funds have the highest returns?
There are no fixed rules regarding mutual funds delivering the highest returns, as performance depends on factors like stock allocation and the fund manager's expertise. Generally, small-cap, mid-cap, and multi-cap funds perform better during bull markets. In contrast, large-cap and flexi-cap funds often do well during bear markets.
How long should I stay invested in mutual funds for maximum returns?
Generally, you should be invested for at least 7-10 years for maximum returns and, ideally, even longer, depending on the investment objective.
