For the month of Feb-22, FPIs sold heavily to the tune of Rs35,592cr as the spectre of rising Fed rates spooked global investors. Apart from a rush to safety, most FPIs have been sceptical about Indian markets due to rich valuations and relatively cheaper Asian markets. High inflation has also been a headwind, as has been India’s vulnerability to crude prices.
After the sharp spike in bond yields in Jan-22, Feb was a relatively softer month. In early Feb-22, the 10-year benchmark bond yields got perilously close to the 7% mark but closed the month at more reasonable levels of 6.77%. Markets are now favourably responding to the fact that the Ukraine crisis could force the Fed to be less hawkish on its rates stance. Here is how the major mutual fund categories performed in Feb-22.
1. Equity Large-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (ason 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Axis Blue-Chip Fund (G) | 14.693% | 17.883% | 16.976% |
Canara Robeco Blue-Chip (G) | 15.138% | 19.961% | 15.892% |
Mirae Asset Large Cap (G) | 14.740% | 16.306% | 14.261% |
Data Source: Morningstar |
2. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Active Fund (G) | 37.291% | 32.343% | 22.845% |
Sundaram Multi-Cap Fund (G) | 28.665% | 20.042% | 15.118% |
Baroda Multi Cap (G) | 26.274% | 21.267% | 13.949% |
Data Source: Morningstar |
3. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Axis Mid-Cap Fund (G) | 21.838% | 23.140% | 19.769% |
Quant Mid Cap Fund (G) | 41.968% | 28.860% | 19.634% |
PGIM India Mid-Cap Fund (G) | 32.382% | 34.283% | 18.679% |
Data Source: Morningstar |
4. Equity Small-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Axis Small Cap Fund (G) | 39.149% | 30.783% | 20.533% |
SBI Small Cap Fund (G) | 26.744% | 27.891% | 20.487% |
Quant Small Cap Fund (G) | 54.680% | 36.917% | 20.486% |
Data Source: Morningstar |
5. Equity Linked Savings Schemes (Tax Saving)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Tax Plan (G) | 38.288% | 34.354% | 22.263% |
BOI AXA Tax Advantage (G) | 22.059% | 26.365% | 18.192% |
Mirae Asset Tax Saver (G) | 17.716% | 21.707% | 18.038% |
Data Source: Morningstar |
6. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Absolute Fund (G) | 32.933% | 27.686% | 18.838% |
BOI AXA Mid and Small (G) | 33.638% | 22.098% | 15.112% |
ICICI Pru Equity & Debt (G) | 28.544% | 20.511% | 14.492% |
Data Source: Morningstar |
7. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
ICICI Pru Regular (G) | 8.571% | 9.915% | 9.071% |
Kotak Debt Hybrid (G) | 10.658% | 12.393% | 9.063% |
Canara Robeco Hybrid (G) | 8.001% | 11.012% | 8.620% |
Data Source: Morningstar |
8. Arbitrage Funds (Cash-Futures)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Nippon India Arbitrage (G) | 4.190% | 4.712% | 5.326% |
Kotak Arbitrage Fund (G) | 4.309% | 4.778% | 5.319% |
BNP Paribas Arbit Fund (G) | 3.930% | 4.757% | 5.292% |
Data Source: Morningstar |
9. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
ABSL G-Sec Fund (G) | 6.368% | 8.803% | 7.980% |
IDFC G-Sec Fund (G) | 5.267% | 9.836% | 7.974% |
Edelweiss G-Sec Fund (G) | 5.852% | 9.490% | 7.830% |
Data Source: Morningstar |
10. Corporate Bond Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
L&T Triple Ace Bond Fund (G) | 6.502% | 9.640% | 7.714% |
ABSL Corporate Bond (G) | 5.347% | 8.250% | 7.710% |
HDFC Corporate Bond (G) | 5.350% | 8.341% | 7.631% |
Data Source: Morningstar |
11. Credit Risk Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
ICICI Pru Credit Risk Fund (G) | 7.072% | 8.552% | 7.751% |
HDFC Credit Risk Fund (G) | 7.310% | 8.862% | 7.593% |
Baroda Credit Risk Fund (G) | 18.916% | 7.820% | 7.327% |
Data Source: Morningstar |
12. Liquid Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 28th Feb-22):
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Liquid Plan (G) | 3.931% | 5.115% | 5.855% |
IDBI Liquid Fund (G) | 3.456% | 4.639% | 5.609% |
Mahindra Manulife Liquid (G) | 3.377% | 4.553% | 5.556% |
Data Source: Morningstar |
Bond funds were the surprise package in Feb-22, with most of them improving their one-year returns. That was due to yields tapering from near 7% to 6.77% in the last week as Ukraine war fears reduced the probability of aggressive rate hikes by the Fed. However, it would be useful to keep a close watch on the emerging retail inflation data, as that is likely to have a strong bearing on benchmark bond yields.
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