Here is List of Mutual Funds with Best Return for 2020
| Fund Name | NAV | 3 YR Return | 5 YR Return |
| Mirae Asset Emerging Bluechip Fund | 59.74 | 15.70% | 17.40% |
| Canara Robeco Emerging Equities Fund | 101.21 | 13.01% | 13.87% |
| Tata India Tax Savings Direct Growth | 20.19 | 13.92% | 13.73% |
| Axis Long Term Equity Direct Growth | 52.77 | 16.89% | 13.31% |
| Principal Emerging Bluechip Fund | 112.81 | 11.45% | 12.86% |
| DSP Tax Saver Direct Plan | 53.91 | 12.39% | 12.22% |
| L&T Midcap Fund | 137.98 | 9.57% | 12.09% |
| Invesco India Tax Plan Direct Growth | 58.27 | 14.05% | 12.09% |
| Axis Long Term Equity Regular Growth | 43.81 | 9.92% | 12.05% |
| Aditya Birla SL Tax Relief 96 Direct Growth | 33.64 | 12.21% | 12.05% |
| JM Tax Gain Direct Growth | 19.68 | 15.22% | 11.61% |
| Franklin India Prima Fund | 1023.64 | 9% | 11.40% |
| LIC MF Tax Plan Direct Growth | 76.22 | 13.82% | 10.25% |
| Invesco India Tax Plan Regular Growth | 47.77 | 7.20% | 10.15% |
| JM Tax Gain Regular Growth | 16.35 | 8.91% | 10.02% |
| Canara Robeco Equity Tax Saver Direct Growth | 70.35 | 13.40% | 9.39% |
| Taurus Tax Shield Direct Growth | 76.43 | 8.03% | 9.24% |
| LIC MF Tax Plan Regular Growth | 64.63 | 8.31% | 8.99% |
| Franklin India Smaller Companies Fund | 53.25 | 3.68% | 8.86% |
| Taurus Tax Shield Regular Growth | 72.98 | 7.43% | 8.32% |
| Canara Robeco Equity Tax Saver Regular Growth | 60.96 | 8.10% | 8.18% |
| Aditya Birla Sun Life Pure Value Fund | 49.97 | 2.48% | 6.66% |
| Mirae Asset Tax Saver Direct Growth | 19.72 | 17.69% | NA |
| Mirae Asset Tax Saver Regular Growth | 16.85 | 12.78% | NA |
| PGIM India Long Term Equity Direct Growth | 15.49 | 13.02% | NA |
| Motilal Oswal Long Term Equity Fund Direct Growth | 19.63 | 14.41% | NA |
The goal of mutual fund investments should ideally be to grow your wealth. This is the primary reason why all mutual funds come with dividend option, though growth options are a lot more sought after as the latter helps wealth grow. When choosing mutual funds to invest in, many investors make the classic mistake of only considering the short term returns of the fund they intend to invest in. This can be a problem especially when investing in equities because such investments should always be considered with a long term investment perspective. It is also notable that among the key mutual fund subtypes of – equity, debt and hybrid, the highest return mutual funds mostly invest in mid and small cap equities. This is, in fact, not a coincidence and occurs mainly because equity investments inherently have superior growth potential as compared to their debt counterparts. The following is a short list of some of the leading high return mutual funds that are available to investors in India.
Also Know: What is FD ?
Investing in the High Return Mutual Funds
The first law of investing, if there is one, would be – higher the risk, higher the potential rewards. The above list of highest return mutual funds show just that. All of the above funds have produced high returns over the long term, but their investment portfolio consists mainly of smaller companies. Smaller companies by definition offer superior growth potential as compared to their larger counterparts and many of them belong to developing markets. However therein is the risk of unsuccessfully executed ventures and the volatility that might result from such adverse market conditions. Thus these investments should never form the core portfolio of an investor instead they should be satellite investments capable of driving growth of the overall portfolio but simultaneously preventing overexposure of the investments to a specific capitalisation or sector.