Create wealth with these mutual funds

Wealth Creation

by 5paisa Research Team Last Updated: Dec 09, 2022 - 05:10 pm 30.4k Views

Mutual funds are one of the best ways to create wealth over the long term. In this article, we have listed the best mutual funds for wealth creation in the longer run. So, stay tuned! 

There has been a record inflow in the equity mutual funds and in March 2022 it surged by about 44%. This can be very well attributed to crude oil prices remaining constant and Foreign Institutional Investors (FII) lowering their pace of selling despite the ongoing geopolitical concerns. According to figures issued by the Association of Mutual Funds in India (AMFI), net inflows into equity mutual funds totalled Rs 28,463.49 crore in March 2022, up from Rs 19,705.27 crore the previous month. 

When it comes to wealth accumulation, it is critical to maintain realistic expectations, and it is even more critical to understand what wealth entails. Wealth is defined as the amount of money left over after deducting inflation. And, as we all know, the inflation issue is worsening not only in India but internationally. Inflation is a wealth destroyer and we believe that any return over inflation with a 2% margin of safety is wealth. 

Say, for instance, our inflation is hovering around 7%, and if you are investing in bank fixed deposits (FD) fetching a mere 6% to 6.5%, then you cannot create any wealth. In fact, your wealth is being destroyed due to a negative real rate of returns. And if you simply invest in debt mutual funds generating returns around 7% to 8%, then you can neither be creating wealth nor destroying. However, if you are investing in a good mix of equity and debt funds fetching returns of around 10% to 12%, then certainly you are creating wealth. 

So, to create wealth you don’t need to take higher risks than your actual risk tolerance level. We have listed the best five funds for wealth creation. 

Trailing Returns (%) 




SBI Small Cap Fund 




Baroda BNP Paribas Midcap Fund 




Axis Small Cap Fund 




Parag Parikh Flexi Cap Fund 




DSP Small Cap Fund 




Share Market Today

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Sai Silks Kalamandir IPO subscribed 4.40 times at close

The ₹1,201 crore IPO of Sai Silks (Kalamandir) Ltd, consisted of a combination of fresh issue and offer for sale. The fresh issue was to the tune of ₹600 crore while the offer for sale (OFS) was worth ₹601 crore.

  • Sep 22, 2023
SignatureGlobal India IPO subscribed 11.88 times at close

The ₹730 crore IPO of SignatureGlobal India Ltd, consisted of a combination of fresh issue and offer for sale. The fresh issue was to the tune of ₹603 crore while the offer for sale (OFS) was worth ₹127 crore.

  • Sep 22, 2023
Zaggle Prepaid Ocean Services IPO lists flat, then inches lower

Zaggle Prepaid Ocean Services Ltd had a literally flat listing on 22nd September 2023, listing exactly at the IPO price and then trending lower from the listing price. The closing price on 22nd September 2023 was not just below the IPO price, but also below the listing price of the day.

  • Sep 22, 2023