What mutual funds have consistently beat S&P 500?
For large cap stocks, there are funds that have beaten S&P500 consistently for over 40-50 years. Fidelity's Contrafund has beaten the market since inception in the 60s. Fidelity growth company and blue chip growth since the 80s. American century's large cap funds (TWCIX, TWCGX, TWCUX) since 70s.
| Fund | 2023 performance (%) | 5yr performance (%) |
|---|---|---|
| T. Rowe Price US Blue Chip Equity | 49.54 | 81.57 |
| MS INVF US Growth | 49.29 | 62.08 |
| New Capital US Growth | 48.68 | N/A |
| T. Rowe Price US Large Cap Growth Equity Fund | 48.64 | 98.92 |
| Focused funds | 5-year-return (%) | Benchmark index (%) |
|---|---|---|
| HDFC Focused 30 Fund | 18.96 | 17.45 |
| ICICI Prudential Focused Equity Fund | 19.04 | 17.61 |
| Nippon India Focused Equity Fund | 18.09 | 17.61 |
| Quant Focused Fund | 20.04 | 17.45 |
| Index fund | Minimum investment | Expense ratio |
|---|---|---|
| Schwab S&P 500 Index Fund (SWPPX) | No minimum. | 0.02%. |
| Fidelity 500 Index Fund (FXAIX) | No minimum. | 0.015%. |
| Fidelity Zero Large Cap Index (FNILX) | No minimum. | 0.0%. |
| T. Rowe Price Equity Index 500 Fund (PREIX) | $2,500. | 0.20%. |
Morningstar analysts assign economic moat ratings based on five competitive advantages: switching costs, intangible assets, network effect, cost advantage, and efficient scale. By prioritizing these factors, the MOAT ETF aims to create a well-rounded portfolio that can consistently outperform the S&P 500.
S&P Dow Jones Indices' scorecard compares the performance of actively-managed mutual funds to major indices. It found that over the course of one year, 51.08% of actively-managed mutual funds underperformed the S&P 500, and 48.92% of actively-managed funds outperformed the S&P 500.
| Company | Sector | 5 Year Total Return |
|---|---|---|
| Palo Alto Networks (PANW) | 🖥️ Information Technology | 412% |
| Lam Research (LRCX) | 🖥️ Information Technology | 392% |
| Chipotle Mexican Grill (CMG) | 🛍️ Consumer Discretionary | 365% |
| Broadcom (AVGO) | 🖥️ Information Technology | 363% |
The top-performing flexi cap mutual funds include Quant Flexi Cap, JM Flexicap and Parag Parikh Flexi Cap Fund, which have given more than 20% annualised returns in the past five years.
Index schemes are supposed to offer returns similar to the index they are investing in. What should investors do when they fail to do their job? A recent ETMutualFunds study of active large cap funds revealed that 80% schemes managed to beat their benchmarks.
| Fund Name | 5 Years Return | 10 Years Return |
|---|---|---|
| Kotak Small Cap fund (G) | 27.8% | 23.1% |
| HSBC Value fund (G) | 22.9% | 22.1% |
| Nippon India Growth Fund (G) | 26.4% | 21.4% |
| Kotak Infrastructure & Economic Reform Fund Standard Plan (G) | 25.4% | 21.2% |
What mutual funds does Dave Ramsey recommend?
I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international. I personally spread mine in 25% of those four.
Vanguard 500 Index Fund seeks to track the investment performance of the Standard & Poor's 500 Index, an unmanaged benchmark representing U.S. large-capitalization stocks. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index.
An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. Index funds have lower expenses and fees than actively managed funds.
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has outperformed S&P by a wide margin. The average 10-year return of Nasdaq 100 over these 15 years was around 9%, while that of S&P 500 was about 5%.
Information technology was the only stock market sector to beat the S&P 500 over the last five years (and the last 10 years). The Vanguard Information Technology ETF is a great option for investors that lack exposure to technology stocks.
- Axon Enterprise. Few stocks have consistently delivered positive returns like Axon Enterprise (NASDAQ: AXON). ...
- The Trade Desk. ...
- Vertex Pharmaceuticals.
| Fund Name | 3 Years Return | 5 Years Return |
|---|---|---|
| Quant Active Fund (G) | 30.8% | 30.2% |
| Invesco India PSU Equity Fund (G) | 38.2% | 29.3% |
| ICICI Prudential Infrastructure Fund (G) | 39.5% | 28.9% |
| Bank of India Manufacturing & Infra fund (G) | 30.9% | 27.9% |
The Bottom Line
A target-date fund is generally a "fund of funds," meaning that the investor is paying an extra layer of fees. Those additional fees could make the fund's actual return compare unfavorably to other options for a retirement portfolio, such as an S&P 500 Index Fund.
| Ticker | Name | 5-year return (%) |
|---|---|---|
| PBFDX | Payson Total Return | 16.30% |
| SSAQX | State Street US Core Equity Fund | 16.20% |
| CORRX | Columbia Contrarian Core Adv | 15.89% |
| FGRTX | Fidelity Mega Cap Stock | 15.73% |
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
What are the magnificent 7 stocks?
- All seven members of the Magnificent Seven, NVIDIA, Microsoft, Meta, Alphabet, Tesla, Apple, and Amazon have reported their quarterly results.
The group is made up of mega-cap stocks Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA). In 2023, the Magnificent 7 stocks logged an impressive average return of 111%, compared to a 24% return for the broader S&P 500.
(You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.
If you were to stay invested for a shorter duration, say 20 years, you'd invest Rs 2,40,000, but your portfolio value would be Rs 9.89 lakh. A decade-long investment of Rs 1,000 per month would equal Rs. 2,30,038, as compared to Rs. 1,20,000 invested over the same period.
Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.
