India’s best performing mutual funds for December 2020

One trend we saw in 2020 was that winners across various categories have been consistent month-after-month. Here is a quick look at key MF categories.

Jan 04, 2021 07:01 IST India Infoline News Service

The month of Dec-20 was another favourable month for equity funds with Nifty gaining over 7.8% and small caps doing a lot better. This is reflected in the performance of multi-cap funds. G-Sec funds also did well as the fall in yields below the 6% mark helped keep bond prices buoyant. Here is a quick look at key MF categories.
  1. Equity Large Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) 19.719% 14.786% 15.008%
Canara Robeco Bluechip (G) 23.057% 13.750% 14.522%
Mirae Asset Large Cap (G) 13.703% 8.394% 13.789%
Data Source: Morningstar
  1. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh LT Equity (G) 32.295% 14.659% 15.029%
Quant Active Fund (G) 43.554% 13.793% 14.940%
UTI Equity Fund (G) 31.546% 15.017% 14.892%
Data Source: Morningstar
  1. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid Cap Fund (G) 26.014% 13.240% 14.842%
DSP Mid Cap Fund (G) 23.642% 6.655% 13.580%
Kotak Emerging Equity (G) 21.889% 5.413% 13.075%
Data Source: Morningstar
  1. Equity Linked Savings Schemes (Tax Saving)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Mirae Asset Tax Saver (G) 21.540% 10.653% 18.127%
Quant Tax Plan (G) 46.921% 13.150% 17.537%
BOI AXA Tax Advantage (G) 32.016% 8.725% 15.231%
Data Source: Morningstar
  1. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 35.866% 12.337% 13.015%
Mirae Asset Hybrid (G) 13.651% 8.814% 12.314%
Principal Hybrid Equity G) 16.320% 5.365% 11.919%
Data Source: Morningstar
  1. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 10.949% 8.503% 9.856%
Kotak Debt Hybrid (G) 13.850% 8.128% 9.489%
Baroda Conservative (G) 13.608% 9.237% 8.733%
Data Source: Morningstar
  1. Arbitrage Funds (Cash-Futures)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 4.310% 5.743% 5.855%
Edelweiss Arbitrage Fund (G) 4.487% 5.591% 5.853%
Kotak Equity Arbitrage (G) 4.332% 5.569% 5.839%
Data Source: Morningstar
  1. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 29th Nov-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 11.222% 10.521% 10.306%
IDFC G-Sec Fund (G) 13.683% 11.545% 10.264%
Aditya Birla SL G-Sec Fund (G) 12.052% 9.952% 10.126%
Data Source: Morningstar
  1. Credit Risk Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
HDFC Credit Risk Fund (G) 10.914% 8.283% 8.466%
ICICI Pru Credit Risk Fund (G) 9.790% 8.628% 8.436%
SBI Credit Risk Fund (G) 9.777% 7.476% 7.953%
Data Source: Morningstar
  1. Liquid Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Dec-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 4.952% 6.401% 6.775%
Aditya Birla Liquid Plan (G) 4.291% 6.124% 6.549%
IDBI Liquid Fund (G) 4.531% 6.195% 6.546%
Data Source: Morningstar


Key takeaways from Year 2020 performance
  • Equity large cap, mid cap and multi cap funds have done a lot better in the last one year as compared to previous 3-year and 5-year periods. This can be attributed to over 15% returns by the Nifty during the year and mid caps and small caps yielding over 25% during the current year.
  • On the debt side, G-Sec funds did better in 2020 than previous years due to bond yields remaining subdued and the RBI language accommodative. However, arbitrage funds and liquid funds underperformed in 2020. That is largely due to surplus liquidity in the system which depressed short-term yields.
  • Passive funds had a good year too. Most index funds generated returns in the range of 14-16% with limited tracking error. However, active managers with a good mix of mid caps and small caps managed to outperform passive funds; in contrast to the last 2 years. Gold ETFs ruled the roost in 2020 with returns of 26%.
One trend we saw in 2020 was that winners across various categories have been consistent month-after-month. That is good news for investors because the process of investing based on past data becomes a lot more reliable. There are questions over credit risk funds due to the sub-par returns compared to G-Sec funds. How credit risk fund position in this space could be the story of 2021!

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