India’s best performing mutual funds for April 2021

Here is a quick take on the major outperformers among various fund categories.

May 03, 2021 09:05 IST India Infoline News Service

In Apr-21 the Nifty  may have closed just -0.41% lower but the volatility was fairly large. The VIX continued to remain elevated above 23 levels and Nifty struggled to break above the 15,000 mark. The Nifty return of -0.41% may be relatively misleading as only metals and pharma stocks gave decisively robust returns. All the other sectors were under pressure and that had a broader impact on MF NAVs. Mid-caps outperformed the large caps.

On the debt front, bond yields remained above the 6% mark but the repeated assurances by the Fed and the RBI did result in 10-year bond yields tapering from 6.22% to 6.03%. Here is a quick take on the major outperformers among various fund categories.

1. Equity Large Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Canara Robeco Blue-Chip (G) 44.518% 14.706% 15.893%
Axis Blue-Chip Fund (G) 37.402% 13.732% 15.546%
Mirae Asset Large Cap (G) 47.122% 11.168% 15.391%
Data Source: Morningstar

2. Equity Multi-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Active Fund (G) 102.990% 21.541% 20.620%
Principal Multi-Cap Fund (G) 51.715% 6.249% 14.449%
INVESCO India Multi-Cap (G) 52.070% 7.004% 13.037%
Data Source: Morningstar

3. Equity Mid-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid Cap Fund (G) 52.658% 15.475% 18.032%
PGIM India Mid-Cap (G) 95.863% 16.354% 17.559%
Kotak Emerging Equity (G) 73.635% 11.738% 17.011%
Data Source: Morningstar

4. Equity Linked Savings Schemes (Tax Saving)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 112.767% 22.722% 22.264%
Mirae Tax Saver Fund (G) 61.772% 15.334% 20.620%
BOI AXA Tax Advantage (G) 60.845% 11.709% 17.998%
Data Source: Morningstar

5. Balanced Funds (Aggressive Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 84.412% 19.335% 16.414%
Canara Robeco Eq Hybrid (G) 35.123% 12.039% 13.807%
Mirae Asset Hybrid (G) 37.459% 11.402% 13.640%
Data Source: Morningstar

6. Balanced Funds (Conservative Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 16.295% 8.864% 9.957%
Kotak Debt Hybrid (G) 20.764% 9.637% 9.535%
Canara Robeco Hybrid (G) 17.102% 10.140% 9.024%
Data Source: Morningstar

7. Arbitrage Funds (Cash-Futures)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 3.494% 5.366% 5.724%
Kotak Equity Arbitrage (G) 3.534% 5.358% 5.700%
Edelweiss Arbitrage Fund (G) 3.264% 5.352% 5.696%
Data Source: Morningstar

8. Government Securities Funds (Gilt Funds)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
IDFC G-Sec Fund (G) 6.332% 11.264% 9.477%
SBI Magnum Gilt Fund (G) 6.209% 10.213% 9.317%
Nippon India Gilt Fund (G) 4.786% 10.185% 9.296%
Data Source: Morningstar

9. Credit Risk Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 9.953% 8.601% 8.297%
HDFC Credit Risk Fund (G) 12.813% 8.673% 8.210%
SBI Credit Risk Fund (G) 10.094% 7.394% 7.845%
Data Source: Morningstar

10. Liquid Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Apr-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 4.566% 6.136% 6.486%
IDBI Liquid Fund (G) 3.646% 5.770% 6.214%
Nippon India Liquid Fund (G) 3.414% 5.672% 6.196%
Data Source: Morningstar

Key takeaways from April 2021 Mutual Fund performance

  • One year equity fund returns in Apr-21 are sharply lower than in Mar-21 and that is largely because Mar-20 was a market bottom and hence the base effect came into play. However, long-term CAGR returns among the equity fund leaders are very attractive.
  • Alpha was more visible in the mid-cap and the multi-cap funds where the smaller companies managed to make a bigger contribution to fund alpha. That is also evident in the NSE mid-cap index outperforming the Nifty by more than 250 basis points in Apr-21.
  • Gilt fund returns were a lot more volatile in the last one year due to contrarian signals coming from the bond markets. The signals from central banks have typically not been in consonance with macro signals, resulting in more volatility in gilt fund returns.
Across most of the mutual fund categories, except the mid-cap funds, the winners in each category have been predominantly consistent. That makes it a lot more predictable for investors to take an investment view in mutual funds based on past returns.

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