The Investing Secret That Wealthy Investors Know: 3 Equity Schemes That Delivered Over 50% Returns in 3 Years

What if we told you that 3 equity schemes offered over 50% returns in a short-term period? It's true! Learn more in this article.

The Investing Secret

Looking to invest in equity schemes that offer high returns? You might be surprised that some equity schemes can deliver an impressive 50% + returns in three years. In this article, we'll take a closer look at three equity schemes that have delivered exceptional returns in a short period. We'll dive into the details of these schemes and explore what makes them unique, so you can make an informed decision when investing your hard-earned money. Read on to discover how you can earn big with these equity schemes.

Looking for high returns on equity investments? Three schemes belonging to the small-cap and sectoral/thematic categories have performed well and rewarded their investors with 50% returns in the past three years. Recent AMFI data show that sectoral/thematic funds received the highest inflows in March 2023. Remember to keep a long-term perspective when investing and research before making any decisions. 

Name these three schemes which have offered their investors 50% or more returns in the past three years.

The three schemes offering their investors 50% or more returns in the past 3 years include Quant Small Cap Fund, ICICI Prudential Commodities Fund and Quant Infrastructure Fund. 

Quant Small Cap Fund: The scheme aims to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of small-cap companies. The benchmark index is Nifty Small Cap 250 Index. Given below is a table, showing the performance of the fund on different time horizons.

Quant Small Cap Fund

(Sourcehttps://www.etmoney.com/mutual-funds/quant-small-cap-fund-direct-plan-growth/16925). Figures as on 20 April 2023.

The top five holdings of the scheme include Reliance Industries (6.5%), ITC Ltd. (5.6%), HDFC Bank (5.3%), Jindal Stainless (5.2%) and RBL Bank (4.5%). 

ICICI Prudential Commodities Fund: The scheme invests predominantly in companies engaged in commodity and commodity related sectors. The benchmark index is the Nifty Commodities Index. Given below is a table, showing the performance of the fund on different time horizons.

ICICI Prudential Commodities Fund

 

(Source: https://www.etmoney.com/mutual-funds/icici-prudential-commodities-fund-direct-growth/40779). Figures as on 20 April 2023.

(Note: Scheme is just 3 years and 6 months old)

The top five holdings of the scheme include Tata Steel (8.6%), UltraTech Cement (8.3%), JSW Steel (8.2%), Jindal Stainless (7.4%) and Grasim Industries (4.6%). 

Quant Infrastructure Fund: The scheme aims to generate capital gain & provide long-term appreciation opportunities by investing in a portfolio of Infrastructure focused companies. Given below is a table, showing the performance of the fund on different time horizons.

Quant Infrastructure Fund

(Source: https://www.etmoney.com/mutual-funds/quant-infrastructure-fund-direct-growth/16930). Figures as on 20 April 2023.

The top five holdings of the scheme include Reliance Industries (9.8%), Larsen & Toubro (9.3%), UltraTech Cement (7.5%), State Bank of India (7.2%) and HDFC Bank (6.6%). 

Investment in small-cap schemes and sector/thematic schemes such as commodity and infrastructure funds is a high-risk game. These schemes are characterised by their extreme volatility, often getting trapped in cycles that can last for prolonged periods. The unpredictability of such schemes can easily unnerve inexperienced investors, leading them to abandon their investments. Therefore, these schemes are not recommended for novice investors.

According to mutual fund advisors, investing in such schemes is advisable only for those who have a considerably long-term investment plan. They usually suggest that investors should have an investment horizon of at least seven to ten years. This is primarily because a long-term investment horizon can help mitigate market volatility and potentially recover any losses incurred.

Even if regular investors find themselves unable to invest in high-risk schemes due to their risk profile, they need not lose heart. Instead, they can consider investing in a flexi-cap scheme, which offers a more flexible investment approach. By investing in a good flexi-cap scheme, investors can take advantage of sectors and themes that are performing well while avoiding excessive risk exposure.

Quant Small Cap Fund, ICICI Prudential Commodities Fund, and Quant Infrastructure Fund have delivered 50% + returns in the past three years, but they are high-risk investments and not recommended for novice investors. Those who decide to invest should have a long-term plan and consider a flexi-cap scheme for a more flexible approach to investment.

 

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