Invest in Credit Risk Mutual Fund or not?

Investing in mutual funds is one of the most profit-making investments. Mutual Funds comparatively have a lesser risk with high returns. It collects money from investors and invests in different asset classes. Mutual Fund is an option that can make you a millionaire even sooner than FD or post office schemes. This may take a few years, but even a single scheme will definitely make you a millionaire if it consistently performs well.

As far as schemes giving huge returns are concerned, there are many options from which investors have gained good profits. Here we will tell you about  five such schemes, which have given more than 100% compounded annual growth rate (CAGR) returns in one year.

If an investor had invested Rs  2 lakh in any of these five schemes, he would have made a profit of more than Rs 2 lakh in the same year, and you would have accumulated a total of Rs 4 lakh. This is due to more than 100% returns provided by the funds. These funds have performed exceptionally well even after the ongoing pandemic which was at its record high.

Quant Small Cap Fund (Growth): This mutual fund scheme has given 132% CAGR returns in one year from  March 12, 2020, to March 11, 2021. This scheme seeks to generate capital appreciation by investing in a well-diversified portfolio of small-cap companies. However, whatever returns the fund delivers, it does so with exceptional consistency. This a high-risk mutual fund.

ICICI Pru Technology Fund (G): This sectoral fund has generated 120% returns in last one year till today. This is a fund that invests mainly in shares of companies in the information technology sector. The scheme seeks long-term capital appreciation by investing in equity and equity-related securities of technology and technology-dependent companies. This too is a high-risk MF  investment scheme.

ICICI Pru Commodities Fund (G): The scheme seeks to generate long-term capital appreciation by creating a portfolio that is invested predominantly in Equity and Equity related securities of companies engaged in commodity and commodity-related sectors. It has given 116% CAGR returns in one year. This is considerably a new fund as it was launched in October 2019.

Quant Tax Plan (G): The Quant Tax Plan more than doubled investors’ money in a year. The fund has given a return of 104.45% in a year.  The amount of those who invested Rs 2 lakh exceeded Rs 4 lakh in a single year. The fund has delivered around 18% in three months and 38.8% in the last six months.

Aditya Birla SL Digital India Fund(G): This fund has exactly doubled the investment amount in one year. It gave 100% CAGR returns during the mentioned time. The fund seeks capital growth, with a secondary objective of income generation with a focus on technology and technology-dependent companies. The scheme follows a bottom-up approach to stock picking, adopting a blend of value and growth style of investing.

(Disclaimer: The recommendations in this story are by the respective research or brokerage firm. Money9 & its management do not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)