India’s best performing mutual funds for August 2020

Here is a quick rundown on performance of major mutual fund (MF) categories in Aug-20.

Sep 02, 2020 07:09 IST India Infoline News Service

During August 2020, Nifty gained 2.57% on the back of 15% returns in June and July combined. Bond yields broke above the 6% mark in the middle of August after remaining sub-6% since June. However, the Fed dovishness is likely to keep yields subdued. The high frequency growth data from IIP, core sector and PMI indicate that the worst may be over and Indian economy may be poised for a recovery.
Key changes are happening in Sep-20 like the new equity margining system and the end of EMI-moratorium period for banks. Here is a quick rundown on performance of major mutual fund (MF) categories in Aug-20 (Only growth funds of Regular Plans).
  1. Equity Large Cap Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) 5.603% 8.941% 10.402%
Mirae Asset Large Cap (G) 5.082% 5.120% 10.075%
Canara Robeco Blue-chip (G) 13.399% 8.094% 9.943%
Data Source: Morningstar
  1. Equity Multi-Cap Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh Long Term (G) 26.047% 13.151% 13.566%
Quant Active Fund (G) 25.432% 9.936% 11.735%
Canara Robeco Equity (G) 12.170% 7.029% 9.104%
Data Source: Morningstar
  1. Equity Mid-Cap Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
DSP Mid Cap Fund (G) 16.721% 4.789% 10.259%
Axis Mid Cap Fund (G) 15.415% 10.139% 9.612%
Kotak Emerging Equity (G) 11.501% 2.667% 9.044%
Data Source: Morningstar
  1. Equity Linked Savings Schemes (Tax Saving)
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 26.519% 7.245% 14.243%
BOI AXA Tax Advantage (G) 21.058% 6.605% 9.854%
Canara Robeco TaxSaver (G) 12.270% 7.532% 9.206%
Data Source: Morningstar
  1. Balanced Funds (Aggressive Allocation)
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Mirae Asset Hybrid Equity (G) 6.570% 5.745% 9.663%
Quant Absolute Fund (G) 15.665% 6.598% 9.437%
Canara Robeco Hybrid G) 11.953% 6.760% 9.298%
Data Source: Morningstar
  1. Balanced Funds (Conservative Allocation)
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 9.486% 6.980% 8.914%
Kotak Debt Hybrid (G) 10.108% 5.884% 8.043%
Baroda Conserv. Hybrid (G) 8.969% 7.639% 7.852%
Data Source: Morningstar
  1. Arbitrage Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Edelweiss Arbitrage Fund (G) 4.959% 5.849% 6.057%
Nippon Arbitrage Fund (G) 4.687% 5.924% 6.022%
Kotak Equity Arbitrage (G) 4.688% 5.807% 5.999%
Data Source: Morningstar
  1. Government Securities Funds (Gilt Funds)
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 9.169% 8.513% 9.975%
Aditya Birla G-Sec Fund (G) 9.348% 7.841% 9.825%
IDFC G-Sec Fund (G) 11.063% 9.007% 9.709%
Data Source: Morningstar
  1. Credit Risk Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 9.645% 7.743% 8.178%
HDFC Credit Risk Fund (G) 9.062% 6.963% 8.121%
Kotak Credit Risk Fund (G) 7.095% 6.776% 7.799%
Data Source: Morningstar
  1. Liquid Funds
The leaders in this category based on 5-year returns (as of 31st Aug 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 5.544% 6.600% 7.032%
PGIM Insta Cash Fund (G) 5.035% 6.498% 6.870%
Aditya Birla Liquid Plan (G) 5.100% 6.514% 6.864%
Data Source: Morningstar
 
 
Key takeaways from the Aug-20 Mutual Fund rankings
  • Equity large caps improved their performance on the back of the market rally, but the real outperformance came from mid-cap and the multi-cap funds.
  • G-Sec funds saw their performance drop in August vis-à-vis July due to the spike in bond yields above the 6% mark in the second half of August 2020.
  • Credit risk funds from select AMCs have been able to consistently outperform which underlines the merits of not assuming undue risks in credit risk investing.
Equity funds were the star performers among mutual funds in August 2020; helped by a near 20% rally in the Nifty over last 3 months. Small caps and mid caps outperformed the benchmark indices. Debt funds were under pressure due to the yield spike but with the Fed policy framework hinting at near zero rates over the next 3-4 years, bond funds too many benefit going ahead.

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