Are Mutual Funds Profitable?

The most prominent buzzword of the financial world today is ‘Mutual funds’. Being at the top of the list for saving, investing, or getting wealthier, it’s been a treasure basket. But if they have downsides to it, they obviously do. But there are certain exceptions to those downsides. Basically, meaning to say, those downsides wouldn’t even be downsides with the right strategies. That might be hard to believe, but it’s by beating the odds that some experts have actually made it to the top.

Moreover, if it has such great returns, doesn’t it have to have a certain amount of risk. Here, we can talk about the profitability of Mutual funds. Maybe after you read this, your doubts could be out of the way for something new on your financial front.

If your biggest question is, “Are Mutual Funds Profitable?” This can show you something to prove a point.

Some of the Most Profitable Mutual Funds in the Last Decade

1. Franklin India Taxshield Fund

Ever since it was established, this fund has given 21% annualized returns, which is an outperformance. In the ELSS category, this is a star-performing fund.

2. Franklin India Prima Fund

Since the fund was established, it has been producing 19% annualized returns, which is again an outperforming fund. It was established almost 20 years ago and still stands strong.

3. ICICI Prudential Long Term Equity Fund

This ICICI Bank Mutual fund holds a strong place in Profitability. It is considered one of the best Mutual fund schemes because it has delivered 19% annualized returns, and for a decade given 13% returns.

4. Aditya Birla Sun Life MNC Fund

In the MNC segment, this is a fund that has always outperformed. It has been giving an 18% annualized return and for the past decade with a 17% return.

5. Tata India Tax Saving Fund

Ever since this fund was established, it has provided an 18% annualized return. It was launched 24 years ago, and it is still an outperformer.

6. Franklin India Technology Fund

The fund has had an 18% annualized return since its inception, and it has clearly outperformed its competitors. Over the last 10 years, it has given an annualized return of 13%.

7. UTI MNC Fund

The UTI MNC Fund has had a 16% annualized return since its launch. This fund has outperformed its competitors. In the last decade, it has given an annualized return of 15%. It has been one of the best performers for the last two decades.

8. SBI Large and Midcap Fund

This fund has had an above-average in its category the past decade with 14% annualized returns.

This list is actually longer, but we’ll stop here because there is more to know about this topic. Now, as you know – Mutual funds are actually very profitable. But, as spoken about before, let us talk about the downsides. There are a few mistakes you shouldn’t be making to be a Profitable Mutual fund investor. Now don’t panic. We’ve got you covered.

Mistakes you Shouldn’t do with Mutual Fund Investments

– There are no guaranteed returns in mutual funds, there is a lot of misconception around this topic, and a lot of investors leave the house in disappointment.

– The last performance is not the only factor that determines the performance of a fund, and apart from that, there is also the attribute of unpredictability.

– Listening to the market noise is a bad habit. Well, a lot of Mutual fund investors do this, and honestly, it wouldn’t work out. There is a reason it’s called market noise.

– Neglecting a financial advisor could be bad. While you’re investing, you are putting your hard-earned money to watch it grow. But, how could you second think about asking for expert advice?

– Funds are not bank deposits, they are risky, and you can’t always expect and see the same thing. Banks give you what’s stable, but funds have ups and downs, and you’ve got to accept that.

Tips and Tricks to Keep Under your Sleeve

Every mutual fund investor must know these points, and they’d get you through the rocky rides of investing in Mutual funds that don’t have guaranteed returns.

  • Don’t quit too soon. If you are quitting because you met with a loss – then that is the actual loss.
  • Consider the fee and transaction expenses you’d be spending on a platform where you can invest in mutual funds, make sure you use the one that is the most wallet-friendly to you.
  • Try to be them for the long term. Nothing can happen over time, and good things take time.
  • Take crash courses and several other seminars. It’s good to gain knowledge in a new field.
  • Don’t make hasty and emotional decisions. They are not for you. You’ve got to buckle up on emotions and make decisions based on logic – even if that is the selling of a fund.
  • Take calculated risks. Don’t Believe that only hero’s take risks, and if you take a risk that you cannot afford – it’s heroic. Even a hero only takes calculated risks. So, do not invest in funds that have a higher risk than the appetite you have for it.


We’ve come to the end of a ride that could tell if Mutual funds are profitable, and not just that – you also found out what mistakes you aren’t supposed to be doing while you become a mutual fund investment. Hopefully, the tips were an added bonus.