These 10 best performing mutual funds made investors rich; check out double digit returns

The last financial year wasn't great for equity-oriented mutual fund (MF) schemes. According to the data provided by the Association of Mutual Funds in India's (AMFI), investors pumped in more than Rs 1.11 lakh crore in equity-oriented mutual fund (MF) schemes in 2018-19, a decline of 35 per cent compared to Rs 1.71 lakh crore inflows in 2017-18. However, this was the the fifth successive year of net inflows in equity mutual funds, further establishing their popularity among investors. The net inflows were largely pulled down due to a steep correction in small and mid-caps along with various other factors, including border tensions with Pakistan.

What are mutual funds and why are they so popular?

A mutual fund is an investment scheme where capital collected from different investors is invested in company shares, stocks or bonds. They are managed collectively to earn the highest possible rate of return. These funds are managed by professional fund managers. Mutual funds promise higher returns than most investment schemes. Also, they are open-ended schemes and that means investors will not face problem of liquidity. All mutual funds are registered with SEBI (Securities Exchange Board of India) and therefore, quite safe.

Here are the 10 best performing mutual funds of last five years, as per Pravin Jadhav, Whole-time Director of Paytm Money:

Note: These are top 10 funds in terms of returns during the last 5 years (as on 24th April, 2019) across major equity categories. Only open-ended, direct and growth schemes which have a minimum AUM of INR 500 Crore (as on March 31, 2019) have been taken into consideration. All the returns figures are shown as a percentage CAGR.

How to invest in mutual funds?

There are three ways to invest in mutual funds - Direct Investment, through Agents and Online. In case of direct investments, you can directly contact fund houses to apply for a scheme and save on brokerage. For this, you can get the form from the nearest branch of the fund house or download it online. Agents are professionals who reach out to potential customers and inform them on the different fund options. Lastly, there are a number of online platforms that could be used to compare funds and make an informed decision.