There are only 20 days to end the unprecedented year 2020 and after a tumultuous market-rout seen globally amid the Covid 19 wave, indices are now trading at an all time high and with it mutual funds that have their corpus deployed in equities too have made enormous return for its investors.
Now, amid this momentum pick-up, there has been witnessed profit booking by investors in mutual funds who worry the market dynamics because of its uncertain nature.
And typically the returns are the highest in case of thematic funds and in that from the pharma space and from the small cap funds which too outperformed indices.
Here are given some of the best mutual funds of the year 2020 based on returns:
1. DSP Healthcare Fund:
Given the pandemic and the way pharma has emerged as an outlier, this particular fund has gained substantially even above its benchmark return. And as on December 11, 2020, the returns from the fund are to the tune of 80 percent i.e. close to doubling investors' wealth in the fund.
It is a fund from the thematic category and need investors' know how of the sector. Expense ratio of the fund is at 0.81 percent. And fund's top portfolio constituents include stocks such as Cipla, Dr. Reddy's, IPCA. And investors can start SIP in the fund
2. Quant Small Cap fund:
This fund too from the small cap space has been an outlier with 1-year return at 76 percent in comparison to Nifty 50 return of 25 percent during the same period. Here also the risk is high but the category despite the lingering worries due to the Covid 19 has outperformed.
The fund's constituents include Majesco, Sun Pharma, Stylam, Tata Steel, PTC India among others.
3. Mirae Asset Healthcare Fund:
This fund again from the pharma category has outperformed during a 1-year period with returns of 74% in comparison to benchmark return of 60 percent. The AUM under the fund is at Rs. 1097 crore and expense ratio is at 0.68 percent. NAV of the fund as on December 10 is Rs. 19.
And its top stock includes Dr. Reddy's, Sun Pharma, Divis Lab, Cipla and IPCA among others.
Note the data has been fetched from Moneycontrol website as on December 11, 2020.