Did I earn good returns from my mutual funds?

I have invested around Rs 17 lakh in mutual funds for over 10 years. My current return is around Rs 28 lakh. Is it good?

—Karthik Ravikumar

You got around 5.12% returns from your mutual funds. That is a CAGR (compounded annual growth rate). You can say it is not a great return.

However, it doesn’t really help us to take a call on whether it is a good return or not. We don’t know when you made the investments. In a lumpsum or in instalments. We also don’t know the scheme or the category you have invested in. That is very important because every category would have delivered different returns. For example, the large cap category gave an average annual return of 13% over 10 years. The small cap gave around 19% during the same period. Again the best performer within the same category would have delivered higher returns.