India’s best performing mutual funds for November2020

For the month of November 2020, the Nifty was up by 11.39%. The Nifty crossed the psychological 13,000 mark even as Sensex crossed 44,500.Here are the best funds for Nov-20.

Dec 02, 2020 09:12 IST India Infoline News Service

For the month of November 2020, the Nifty was up by 11.39%. The Nifty crossed the psychological 13,000 mark even as Sensex crossed 44,500. All the key sectors saw positive returns in the month of November with banks and metals standing out. The broad trend of October repeated with IT, pharma and FMCG sector lagging the Nifty in November too.

The last credit policy in October was a brave credit policy which almost assured markets that rates would not be hiked till the end of 2021. The inflation rate for October came in at a 6-year high of 7.61% so rate cuts are ruled out for now. Here are the best funds for Nov-20.

1. Equity Large Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on29thNov-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) 11.661% 12.809% 13.308%
Canara Robeco Bluechip (G) 15.322% 11.584% 12.828%
Mirae Asset Large Cap (G) 6.753% 6.685% 12.409%
Data Source: Morningstar

2. Equity Multi-Cap 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
Parag Parikh LT Equity(G) 27.533% 13.853% 14.151%
Quant Active Fund (G) 24.971% 10.856% 13.127%
UTI Equity Fund (G) 22.654% 13.085% 12.939%
Data Source: Morningstar

3. Equity Mid-Cap 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
Axis Mid Cap Fund (G) 21.174% 12.975% 13.724%
DSP Mid Cap Fund (G) 22.478% 7.259% 13.238%
Kotak Emerging Equity (G) 18.288% 5.341% 12.315%
Data Source: Morningstar

4. Equity Linked Savings Schemes (Tax Saving)

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
Quant Tax Plan (G) 28.387% 9.663% 15.674%
Axis Long Term Equity (G) 13.706% 11.128% 12.908%
BOI AXA Tax Advantage (G) 25.165% 7.736% 12.898%
Data Source: Morningstar

5. Balanced Funds (Aggressive Allocation)

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
Quant Absolute Fund (G) 21.148% 9.678% 11.375%
Mirae Asset Hybrid (G) 8.554% 7.345% 11.357%
Canara Robeco Hybrid G) 15.074% 9.453% 10.836%
Data Source: Morningstar

6. Balanced Funds (Conservative Allocation)

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
ICICI Pru Savings Fund (G) 9.557% 7.972% 9.514%
Kotak Debt Hybrid (G) 11.619% 7.258% 8.976%
Baroda Conservative(G) 12.059% 8.753% 8.582%
Data Source: Morningstar

7. Arbitrage Funds (Cash-Futures)

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
Edelweiss Arbitrage Fund (G) 4.422% 5.654% 5.902%
Nippon Arbitrage Fund (G) 4.207% 5.780% 5.893%
Kotak Equity Arbitrage (G) 4.240% 5.631% 5.882%
Data Source: Morningstar

8. 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) 11.141% 9.968% 10.200%
IDFC G-Sec Fund (G) 13.788% 10.869% 10.145%
Aditya Birla SL G-Sec Fund (G) 11.438% 9.246% 9.951%
Data Source: Morningstar

9. Credit Risk 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
HDFC Credit Risk Fund (G) 10.365% 7.972% 8.489%
ICICI Pru Credit Risk Fund (G) 9.777% 8.472% 8.428%
SBI Credit Risk Fund (G) 8.987% 7.291% 7.950%
Data Source: Morningstar

10. Liquid 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
Quant Liquid Plan (G) 5.123% 6.471% 6.852%
Aditya Birla Liquid Plan (G) 4.519% 6.247% 6.641%
PGIM India Insta Cash (G) 4.409% 6.224% 6.640%
Data Source: Morningstar

Key takeaways from Nov-20 rankings

• Equity funds did well across large-cap and mid-caps with a perceptible improvement in the short-term and the long-term returns on these funds. In fact, long term returns have moved up on an average by 200-300 basis points.

• Mid-caps and multi-caps outshone the large cap funds which is evident from the mid cap index giving 19.4% returns in November. For investors in MFs, the alpha is clearly gravitating towards mid-cap stocks.

• Low yields have reduced the attractiveness of arbitrage funds as yields on these funds are now lower than liquid funds. Even considering tax benefits on arbitrage funds, the yield gap explains why funds have flowed out of arbitrage funds.

Equity fund managers have successfully rotated their holdings towards cyclicals which is visible in their short-period returns. The good news is that the gainers across all the classes have been consistent over the last 4-5 months. This makes investment based on past data a lot more predictable and also practicable. That could be good news for retail investors in mutual funds as an asset class!

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