India’s Best Performing Mutual Funds in July - August 2021
On the debt front, bond yields stayed above 6% in Jul-21, and closed the month at 6.21%. While the Fed maintained a neutral stance, RBI monetary policy is likely to maintain status quo. The concerns are over the bond auctions devolving. Markets are factoring in 2 rate hikes by end of next year in the US. How did this impact fund rankings in Jul-21?
1. Equity Large Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Axis Blue-Chip Fund (G) | 40.165% | 14.172% | 15.917% |
| Canara Robeco Blue-Chip (G) | 44.282% | 16.146% | 15.749% |
| Mirae Asset Large Cap (G) | 45.454% | 14.005% | 15.001% |
| Data Source: Morningstar |
2. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Active Fund (G) | 93.061% | 28.459% | 23.431% |
| Principal Multi-Cap Fund (G) | 61.265% | 13.866% | 15.590% |
| INVESCO India Multi-Cap (G) | 70.933% | 15.600% | 14.837% |
| Data Source: Morningstar |
3. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| PGIM India Mid-Cap (G) | 96.750% | 26.454% | 19.364% |
| Axis Mid-Cap Fund (G) | 64.192% | 21.374% | 19.350% |
| Quant Mid-Cap Fund (G) | 91.235% | 23.853% | 19.208% |
| Data Source: Morningstar |
4. Equity Small-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon Small Cap Fund (G) | 115.264% | 22.321% | 22.290% |
| Quant Small Cap (G) | 160.868% | 35.367% | 22.149% |
| SBI Small Cap Fund (G) | 89.524% | 21.814% | 21.958% |
| Data Source: Morningstar |
5. Equity Linked Savings Schemes (Tax Saving)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Tax Plan (G) | 108.129% | 30.900% | 23.762% |
| Mirae Tax Saver Fund (G) | 61.655% | 19.689% | 20.166% |
| BOI AXA Tax Advantage (G) | 71.122% | 19.309% | 18.765% |
| Data Source: Morningstar |
6. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Absolute Fund (G) | 80.037% | 25.791% | 18.806% |
| BOI AXA Mid and Small (G) | 82.158% | 16.450% | 16.542% |
| Canara Hybrid Equity (G) | 37.252% | 14.626% | 13.879% |
| Data Source: Morningstar |
7. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jun-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Kotak Debt Hybrid (G) | 19.338% | 10.983% | 9.243% |
| ICICI Pru Regular (G) | 12.973% | 9.201% | 9.075% |
| Canara Robeco Hybrid (G) | 14.837% | 10.752% | 8.803% |
| Data Source: Morningstar |
8. Arbitrage Funds (Cash-Futures)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon Arbitrage Fund (G) | 3.848% | 5.181% | 5.615% |
| Kotak Arbitrage Fund (G) | 4.048% | 5.214% | 5.594% |
| L&T Arbitrage Opps Fund (G) | 4.036% | 5.242% | 5.589% |
| Data Source: Morningstar |
9. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| IDFC G-Sec Fund (G) | 2.571% | 11.108% | 8.747% |
| SBI Magnum Gilt Fund (G) | 3.241% | 10.063% | 8.444% |
| Nippon India Gilt Fund (G) | 1.886% | 9.822% | 8.316% |
| Data Source: Morningstar |
10. Corporate Bond Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Birla Corporate Bond (G) | 5.667% | 9.232% | 8.294% |
| HDFC Corporate Bond (G) | 5.143% | 9.223% | 8.205% |
| Kotak Corporate Bond (G) | 5.059% | 8.198% | 7.887% |
| Data Source: Morningstar |
11. Credit Risk Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| ICICI Pru Credit Risk Fund (G) | 7.860% | 8.708% | 8.178% |
| HDFC Credit Risk Fund (G) | 9.666% | 9.060% | 8.104% |
| SBI Credit Risk Fund (G) | 7.115% | 7.433% | 7.270% |
| Data Source: Morningstar |
12. Liquid Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Jul-21):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Liquid Plan (G) | 4.301% | 5.850% | 6.257% |
| IDBI Liquid Fund (G) | 3.397% | 5.433% | 6.000% |
| Axis Liquid Fund (G) | 3.219% | 5.308% | 5.963% |
| Data Source: Morningstar |
To sum it up, on the equity side, the outperformance came from mid-cap and small cap funds, while the large cap funds have largely sustained their performance. ELSS funds continue to underperform equity funds as an asset class.
On the debt front, yields on most debt funds have gone down in the last one month due to a spike in bond yields and volatility. However, the leaders across equity and debt funds have been largely consistent, which is the good news from a financial planning perspective.