Comparison of Returns
There are primarily 4 categories of funds where people usually invest their money which are ELSS, Debt, Equity & Balanced Funds. We have compared the returns of investing into these mutual funds vs fixed deposits and gold.
|
Asset Class |
Average 5 Year return ( annualised) |
Value of 1 Lakh after 5 Years |
| Fixed Deposit (after tax) | 6.5% | 1.37 |
| ELSS Return | 20.47% | 2.54 |
| Debt Funds Return | 14.42% | 1.96 |
| Equity Funds Return | 27.6% | 3.38 |
| Balanced Fund Return | 16.24% | 2.12 |
| Gold Return | -0.98% | 0.95 |
*Average is computed using the top 30 funds in each category
Mutual funds have outperformed all the other asset classes with equities fund giving around 27% annually over the last 5 years. Even low risk debt funds have given almost twice the returns as compared to Bank Fixed Deposits.
Mutual funds are indeed a sustainable way to create wealth. Let us look at how we can invest in them in next section.
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