The last 1-year has given solid returns for equity mutual funds, especially those who invested exactly at the same time last year, when the markets had collapsed, due to the first outbreak of Covid. This has led to stupendous returns of equity mutual funds in the last 1-year. Here are a few equity mutual funds, which have generated more than 60% returns, though there could be several of them.
UTI Flexi Cap Fund
This fund has generated a return of 62.10 per cent in the last 1 year. UTI Flexi Cap Fund has been rated 5-star by Value Research. The 3-year returns are more tempered at 14.92%, while the 5-year returns is 16 per cent on an annualized basis. The fund is run by UTI and has assets under management of more than 16,000 crores.
The portfolio of the fund comprises of stocks like HDFC Bank, Bajaj Finance, L&T Infotech, Infosys and HDFC. One can also invest in the fund through the SIP route, where the minimum sum required is Rs 1,000 per month. We wish to inform readers that the markets have run-up sharply in the last 1 year after the collapse due to the nation wide lockdown. Hence, seeing 1-year returns and then investing may not be the ideal way to go about investing.
Mirae Emerging Bluechip Fund
This fund has a 5-star rating from Crisil and Value Research. The 1-year returns of the fund has been excellent at 63.24 per cent, while the 3-year returns has been 16.15 per cent and 5-year returns has been 20.77 per cent on an annualized basis. The assets under management of the fund is in excess of Rs 16,000 crores.
Almost the entire amounts has been invested and the fund does not have anything in cash and equivalents. The portfolio of Mirae Emerging Bluechip Fund comprises of names like HDFC Bank, ICICI Bank, Infosys and Axis Bank. For those looking to invest, it is better to avoid investing lumpsum, given the way the markets have rallied in the last 1-year.
Tata Midcap Growth
This is another fund that has done exceptionally well in the last 1 year. The 1-year returns has been 61.74 per cent on an annualized basis. The 3-year returns is more tempered at 11 per cent. It's important to emphasize the fact that this is a midcap fund, which means returns tend to be more volatile. In a sense, if the markets fall, this funds returns would fall faster, while if the markets gain, returns could be much better. In this kind of a fund, the best way would be to invest through the Systematic Investment route plans. This fund has investment in stocks like Voltas, Cholamandalam Investment, Tat Power, Navin Flourine etc. Again, being a midcap fund, one should think twice before investing large lumpsum amounts.
SBI Small Cap Fund
SBI Small Cap Fund has given an astounding returns of almost 81 per cent in 1-year. That is a phenomenal set of returns by any standards. The fund invests in companies with a small market cap, which means returns can be volatile. If there is some serious selling pressure in stocks, the returns from the fund could be in serious trouble. The fund has a portfolio that includes stocks like JK Cement, Elgi equipments, Bluestar etc. One can invest through the SIP route as well, which would be the ideal way to invest in small cap stocks.
About the author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.
Please read our disclaimer on the goodreturns.in website before investing. The above mentioned article is purely for informational purposes. It is not a solicitation to buy or sell equity mutual fund schemes. Greynium Information Technologies and the author are nor responsible for losses incurred based on action taken through reading of the article.