What will be the average return on mutual funds? (2024)

What will be the average return on mutual funds?

The Average return of investment for mutual funds varies depending on the category of the fund and the time period considered. For example, in 2021 mutual funds in seven broad categories averaged an annual return of 11.54%.

What is the average return for mutual funds?

As of 2020, the average five-year return for large-cap mutual funds was around 11.9%. In the long-run (10 years or more) most mutual funds underperform the S&P 500. According to Dalbar, for 20 years ending 2019, the S&P 500 Index averaged 6.06%, while the average equity fund investor earned only 4.25% annually.

How much return will I get from mutual funds?

Top Debt Fund
Mutual Funds5 Yr Returns3 Yr Returns
Bank of India Credit Risk Fund Direct Growth-2.62%42.03%
Bank of India Credit Risk Fund Regular Growth-2.89%41.63%
ICICI Prudential BHARAT 22 FOF - Direct Growth20.19%37.01%
ICICI Prudential India Opportunities Fund Direct Plan Growth23.62%31.15%
6 more rows

How do you calculate mutual fund return?

How to Calculate Mutual Fund Returns?
  1. Absolute Returns. Formula: [(Current NAV – NAV at the time of purchase) / NAV at the time of purchase] × 100. ...
  2. Annualised Returns. Formula: Absolute Returns / Investment Period. ...
  3. CAGR. Formula: [(Final Investment Value / Initial Investment Amount) ^ (1/number of years invested)] – 1. ...
  4. XIRR.
Jan 9, 2023

How do you calculate average in mutual funds?

With a compounded annual growth rate or CAGR, you can calculate the average rate of growth for an investment period of more than 12 months, the formula is {[(current NAV/beginning NAV)^(1/the number of years)]-1} x100. If your investment is in months, you can replace 1/number of years with 12/number of months.

What is a good return on a mutual fund?

For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8% to 10%. For bond mutual funds, a good long-term return would be 4% to 5%.

What is the average return on mutual funds for the last 20 years?

Equity mutual funds have outperformed index over the long term. The above data is sourced from MFI, FundsIndia Research. The figures are updated as on July 31, 2023. The funds have given 17% to 20% returns over 20 years.

What is the average return on mutual funds for the last 25 years?

The report shows that equity funds have delivered CAGR of 18.66% in 25 years as against CAGR of 5.55% of inflation, indicating that equity funds have generated real return of 12.42% over the last 25 years. In other words, Rs. 1 lakh invested in equity funds has become Rs. 72.02 lakh in 25 years.

What is the average return on mutual funds in 10 years?

Highest Return Mutual Funds in Last 10 Years
Fund Name5 Years Return10 Years Return
Quant Large and Mid Cap Fund (G)24.5%22.7%
Mirae Asset Large & Midcap Fund (G)19.1%22.6%
Kotak Emerging Equity Scheme (G)21.3%22.3%
Motilal Oswal Midcap fund (G)25.0%21.9%
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Which mutual funds give highest return?

Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.

How much money do I need to invest to make $3000 a month?

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

What is the average rate of return on stocks?

The average stock market return is about 10% per year for nearly the last century, as measured by the S&P 500 index. In some years, the market returns more than that, and in other years it returns less.

Which mutual fund has the highest 1 year return?

Equity Mutual Funds: One-year performance
  • Bandhan Small Cap Fund. 70.32%
  • Mahindra Manulife Small Cap Fund. 67.56%
  • Quant Small Cap Fund. 66.83%
  • Quant Value Fund. 64.52%
  • ITI Small Cap Fund. 63.61%
  • Quant Mid Cap Fund. 59.57%
  • JM Value Fund. 57.65%
  • ITI Mid Cap Fund. 57.41%
Feb 14, 2024

What is the average rate of return?

The average rate of return (ARR) is the average annual return (profit) from an investment. The ARR is calculated by dividing the average annual profit by the cost of investment and multiplying by 100 percent. The higher the value of the average rate of return, the greater the return on the investment.

How do you calculate the average return?

For instance, suppose an investment returns the following annually over a period of five full years: 10%, 15%, 10%, 0%, and 5%. To calculate the average return for the investment over this five-year period, the five annual returns are added together and then divided by 5.

What is the average return of a portfolio?

10-year, 30-year, and 50-year average stock market returns
PeriodAnnualized Return (Nominal)$1 Becomes... (Adjusted for Inflation)
10 years (2012-2021)14.8%$3.06
30 years (1992-2021)9.9%$5.65
50 years (1972-2021)9.4%$6.88
Nov 13, 2023

What is a good average return?

A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.

What is the average return on mutual funds for the last 5 years?

Highest Return Mutual Funds in Last 5 Years
Fund Name3 Years Return5 Years Return
Aditya Birla Sun Life Digital India Fund (G)17.7%24.1%
ICICI Prudential Technology Fund (G)17.1%24.0%
Bank of India Manufacturing & Infra fund (G)27.9%24.0%
Quant Large and Mid Cap Fund (G)27.6%23.9%
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How much money should you keep in mutual funds?

Conclusion. It is crucial to implement 50:30:20 rule in your financial plan. One should invest at least 20% of their salary in mutual funds and can later increase whenever possible.

What if I invest $1,000 in mutual funds for 10 years?

Let's assume an average annual rate of return of 12% for the mutual fund investment. This rate is for illustrative purposes, and actual returns can vary. Evaluating this equation, the future value of the monthly SIP of Rs 1000/month over 10 years at a 12% annual rate of return would be approximately Rs 2.32 lakhs.

What if I invest $1,000 a month in mutual funds for 20 years?

If you were to stay invested for a shorter duration, say 20 years, you'd invest Rs 2,40,000, but your portfolio value would be Rs 9.89 lakh. A decade-long investment of Rs 1,000 per month would equal Rs. 2,30,038, as compared to Rs. 1,20,000 invested over the same period.

What are the risks in mutual funds?

Therefore, prior to making an investment, prospective investors should consider the following risk factors.
  • Returns Not Guaranteed. ...
  • General Market Risk. ...
  • Security specific risk. ...
  • Liquidity risk. ...
  • Inflation risk. ...
  • Loan Financing Risk. ...
  • Risk of Non-Compliance. ...
  • Manager's Risk.

What is a good return on investment over 30 years?

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns. Other years will generate significantly higher returns.

Which mutual fund is best for 25 years of investment?

List of Long Duration Duration Mutual Funds in India
Fund NameCategoryRisk
Bandhan Tax Advantage (ELSS) FundEquityVery High
SBI Long Term Equity FundEquityVery High
Axis Small Cap FundEquityVery High
ICICI Prudential Value Discovery FundEquityVery High
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Which mutual fund has highest return in 20 years?

10 Best SIP Plans for 20 years in India to Invest in 2023
Scheme NameAUM (Rs Crore)20-Year SIP Return (%)*
ICICI Prudential Technology Fund8,993.0918.52
ICICI Prudential FMCG Fund1,156.4917.76
Sundaram Midcap Fund7,048.7917.29
Nippon India Growth Fund13,409.6117.04
7 more rows
Jan 12, 2024


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