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.
Average 5 Year return ( annualised)
Value of 1 Lakh after 5 Years
|Fixed Deposit (after tax)||6.5%||1.37|
|Debt Funds Return||14.42%||1.96|
|Equity Funds Return||27.6%||3.38|
|Balanced Fund Return||16.24%||2.12|
*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.