India on a roll...12 MF schemes feature in Best 25 list

That India is on the move is a well articulated fact. And, when an economy consistently does well for a number of years, naturally there is a cascading effect on the capital market as well. India is no exception to that age-old economic rule. Its stock market has gained substantially in terms of market cap as well as in its stature among the world's top markets in the world. Last year's record FII inflow and the huge interest in new issues is ample proof of that.



In a development that will only add to the growing reputation of the Indian financial markets, eight domestic equity mutual fund schemes have made it to the list of the world's 25 best-performing open-ended equity funds of the last decade. According to US-based research firm Morningstar, the eight funds delivered a CAGR of 31% to 38% in the past 10 years. The BSE Sensex gave a return of 17.8% on a CAGR basis during the last 10 years.

"Russian and Indonesian stock markets have performed better than India's in the last 10 and 15 years, but Indian equity funds crowd the list because the other countries did not have enough funds to capture those returns," Dhruva Raj Chatterji, senior research analyst, Morningstar India has been quoted as saying.

India's total stock market capitalisation increased to over US$1.6 trillion in December 2010 from US$148bn in early part of the last decade.

No Indian equity mutual fund made it to the list of best performing funds for the last five years or for the year 2010. The Sensex gave a return of 16.9% in the five years till December 2010 and 17.4% in 2010.