Share Market News / Are you worried due to the fall in the market? You can get better returns from these funds

Amid the fall in the stock market, Multicap, ELSS, and Bluechip funds are the options for better returns. Multicap funds gave 20.40% CAGR in three years, while among tax saving funds, Axis ELSS gave 16.03% return in 15 years. Investors can reap stable and long-term benefits.

Vikrant Shekhawat : Jan 29, 2025, 06:00 AM
Share Market News: The Indian stock market has seen a huge decline in the last one month. During this period, investors have lost about Rs 21 lakh crore. In this uncertain environment, it may be better to invest in options like multicap, ELSS and bluechip funds instead of investing directly in the stock market. These funds not only give stable returns but also reduce the risk. Let us know through the data how these funds have performed so far.

Nifty 50 gave 11.85% CAGR return

If we look at the performance between 2010 and 2024, Nifty 50 has recorded an average compound annual growth rate (CAGR) of 11.85%. This growth is the result of strong corporate earnings, favorable government policies and increasing participation of retail investors. Also, Systematic Investment Plan (SIP) has provided investors with an easy and effective way to invest regularly.

Multicap Funds: Option for Better Returns

Multicap funds have offered investors balanced risk and attractive returns. Axis Multicap Fund has delivered a CAGR return of 20.40% in the last three years, which is much better than its benchmark.

Performance of other multicap funds:

Birla Multicap Fund: 12.64% (in three years)

HDFC Multicap Fund: 19.93% (in three years)

These funds aim to provide stable and superior returns through balanced investments in large, mid and small cap companies.

Bluechip Funds: A combination of stability and growth

Bluechip funds have always delivered stable returns by investing in high quality large-cap stocks. For example:

Axis Bluechip Fund has delivered an average CAGR return of 12.48% in the last 15 years.

These funds prioritize stocks with stability and growth potential, ensuring reliable performance in the market.

ELSS Funds: Growth with Tax Savings

If you want better returns along with tax savings, Equity Linked Savings Scheme (ELSS) funds are an ideal choice. These funds come with a lock-in period of three years and offer the benefit of tax savings along with capital appreciation.

Performance over the last 15 years:

Axis ELSS Fund: 16.03% CAGR returns

One-year performance:

Axis: 15.77%

SBI: 13.93%

HDFC: 13.33%

DSP: 15.2%

ESG Funds: Investing for a stronger future

Environmental, social and governance (ESG)-based investments are also becoming increasingly popular.

Axis ESG Integration Strategy Fund, launched five years ago, has delivered 16.66% CAGR returns till date. This fund invests in companies that follow strong ESG practices, giving investors long-term benefits with stable returns.

Short Duration Funds: Ideal option for low-risk investors

For investors who want to invest for a low risk and short period, short duration funds can be a better option.

Axis Short Duration Fund has given an average CAGR return of 7.51% in the last 15 years.

These funds invest primarily in debt and money market instruments with a maturity period of 1-3 years.

Keep these things in mind before investing

Risk profile: Understand the risk level of your investment and select funds accordingly.

Long term view: Long term investment in the stock market always gives better returns.

Diversification: Divide your portfolio into funds like multicap, bluechip and ELSS.

Conclusion

Although the stock market is currently in a downtrend, by choosing the right investment option, you can get better returns while keeping your capital safe. Multicap, ELSS and bluechip funds have consistently performed well and can help provide stability and growth to your investments. By investing regularly through Systematic Investment Plan (SIP), you can get great returns in the long term.