India’s best performing mutual funds for January 2021

For the month of January, the Nifty lost (-2.5%) and ended with a loss of over 1000 points from its January peak. The Sensex also lost over 3800 points from its peak levels. This obviously had an impact on equity fund returns. Here is how they fared.

Feb 03, 2021 08:02 IST India Infoline News Service

The month of January 2021 has been a rather tricky one for the markets with the equity indices starting strong but correcting sharply after the Sensex briefly scaled the 50,000 mark. For the month of January, the Nifty lost (-2.5%) and ended with a loss of over 1000 points from its January peak. The Sensex also lost over 3800 points from its peak levels. This obviously had an impact on equity fund returns. Here is how they fared.
  1. Equity Large Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Canara Robeco Bluechip (G) 18.123% 11.776% 15.139%
Axis Bluechip Fund (G) 12.805% 12.084% 15.041%
Mirae Asset Large Cap (G) 12.193% 6.684% 14.850%
Data Source: Morningstar
  1. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh LT Equity (G) 30.212% 13.743% 16.870%
Quant Active Fund (G) 37.672% 13.352% 16.094%
UTI Equity Fund (G) 23.261% 13.026% 15.560%
Data Source: Morningstar
  1. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid Cap Fund (G) 18.053% 13.465% 15.567%
Kotak Emerging Equity (G) 14.584% 6.519% 15.196%
DSP Mid Cap Fund (G) 15.196% 6.891% 15.048%
Data Source: Morningstar
  1. Equity Linked Savings Schemes (Tax Saving)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Mirae Asset Tax Saver (G) 18.912% 9.463% 19.001%
Quant Tax Plan (G) 43.272% 13.109% 18.515%
BOI AXA Tax Advantage (G) 23.721% 7.547% 15.963%
Data Source: Morningstar
  1. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 33.153% 11.948% 13.771%
Canara Robeco Hybrid (G) 15.213% 9.503% 12.948%
Mirae Asset Hybrid Equity G) 12.497% 7.507% 12.927%
Data Source: Morningstar
  1. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 10.047% 8.250% 10.074%
Kotak Debt Hybrid (G) 13.596% 8.369% 9.829%
Aditya Birla Reg. Savings (G) 11.626% 4.910% 8.866%
Data Source: Morningstar
  1. Arbitrage Funds (Cash-Futures)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Edelweiss Arbitrage Fund (G) 4.122% 5.450% 5.794%
Nippon Arbitrage Fund (G) 3.887% 5.534% 5.791%
Kotak Equity Arbitrage (G) 3.971% 5.435% 5.785%
Data Source: Morningstar
  1. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Aditya Birla SL G-Sec Fund (G) 11.267% 10.183% 10.293%
Nippon India Gilt Fund (G) 10.619% 10.666% 10.201%
ICICI Pru Gilt Fund (G) 12.170% 10.339% 10.122%
Data Source: Morningstar
  1. Credit Risk Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
HDFC Credit Risk Fund (G) 10.376% 8.303% 8.468%
ICICI Pru Credit Risk Fund (G) 9.220% 8.597% 8.422%
SBI Credit Risk Fund (G) 8.951% 7.362% 7.861%
Data Source: Morningstar
  1. Liquid Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 4.808% 6.325% 6.711%
IDBI Liquid Fund (G) 4.339% 6.091% 6.467%
Aditya Birla SL Liquid (G) 4.089% 6.014% 6.465%
Data Source: Morningstar
Key takeaways from Year 2020 performance
  • Equity large cap funds and mid cap funds saw short term returns taper in Jan-21 compared to Dec-21. This is on account of the sharp correction in the Nifty and Sensex in last 2 weeks of January. This led to returns on equity funds dropping by 200-300 bps.
  • Yields on G-Sec funds, in line with 10-year yields, were stable compared to Dec-21. Liquid funds delivered returns of around 4% due to surplus liquidity in the system. The performance of credit risk funds remained stable giving stability to this segment.
  • Aggressive balanced funds saw pressure on short term returns in line with equity funds while balanced conservative funds did worse than debt funds due to negative returns on equities. Arbitrage funds, like liquid funds, came under pressure due to surplus liquidity.
Despite the sharp correction in the Nifty and Sensex, the winners have remained stable, barring a few shifts here and there. That makes the entire task of investing in mutual fund based on past returns more reliable and beneficial. That could be the good news for investors looking for potential outperformers among mutual funds.

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