India’s best performing mutual funds for October 2020

Here is a look at the performance of various categories of mutual funds indexed on 5-year returns.

Nov 03, 2020 08:11 IST India Infoline News Service

For the month of October 2020, the Nifty was up by 3.51%. However, the positive trend was largely restricted to private banks and IT stocks. Other sectors like pharma, FMCG, autos and oil & gas were under pressure. The Nifty also struggled to cross the 12,000 mark although the Sensex manage to scale above the psychological 40,000 mark.

The triggers have been positive for the debt funds with the recent RBI policy almost confirming an accommodative stance; at least till the end of 2021. That should be positive for bond funds, especially if they are focused on the long end of the duration curve. Here is a look at the performance of various categories of mutual funds indexed on 5-year returns.

1. Equity Large Cap Funds

Top performing Regular Plans (Growth Option)based on 5-year returns (as on30thOct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) 1.493% 9.194% 10.919%
Canara Robeco Bluechip (G) 5.951% 8.114% 10.377%
Mirae Asset Large Cap (G) -0.617% 3.894% 10.265%
Data Source: Morningstar

2. Equity Multi-Cap Funds

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh LT Equity(G) 18.649% 11.278% 12.755%
Quant Active Fund (G) 15.309% 9.767% 12.738%
UTI Equity Fund (G) 11.152% 9.333% 10.011%
Data Source: Morningstar

3. Equity Mid-Cap Funds

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid Cap Fund (G) 8.938% 10.024% 11.068%
DSP Mid Cap Fund (G) 10.584% 3.496% 10.964%
Kotak Emerging Equity (G) 6.776% 1.886% 9.601%
Data Source: Morningstar

4. Equity Linked Savings Schemes (Tax Saving)

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 18.693% 8.111% 15.335%
BOI AXA Tax Advantage (G) 14.605% 5.293% 10.485%
Canara Robeco TaxSaver (G) 9.600% 8.550% 10.204%
Data Source: Morningstar

5. Balanced Funds (Aggressive Allocation)

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 13.052% 8.281% 10.134%
Mirae Asset Hybrid (G) 2.601% 4.888% 9.516%
Canara Robeco Hybrid G) 7.264% 6.931% 9.352%
Data Source: Morningstar

6. Balanced Funds (Conservative Allocation)

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 8.191% 7.234% 8.846%
Kotak Debt Hybrid (G) 8.805% 6.041% 8.087%
Baroda Conservative(G) 10.412% 8.081% 8.086%
Data Source: Morningstar

7. Arbitrage Funds (Cash-Futures)

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Edelweiss Arbitrage Fund (G) 4.749% 5.768% 5.981%
Nippon Arbitrage Fund (G) 4.500% 5.892% 5.956%
Kotak Equity Arbitrage (G) 4.572% 5.738% 5.943%
Data Source: Morningstar

8. Government Securities Funds (Gilt Funds)

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 11.302% 9.555% 9.953%
IDFC G-Sec Fund (G) 13.861% 10.477% 9.886%
Aditya Birla SL G-Sec Fund (G) 11.773% 8.981% 9.691%
Data Source: Morningstar

9. Credit Risk Funds

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
HDFC Credit Risk Fund (G) 10.481% 7.564% 8.332%
ICICI Pru Credit Risk Fund (G) 10.263% 8.194% 8.293%
SBI Credit Risk Fund (G) 9.134% 7.042% 7.839%
Data Source: Morningstar

10. Liquid Funds

Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Oct-20):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 5.276% 6.515% 6.910%
Aditya Birla Liquid Plan (G) 4.670% 6.325% 6.705%
PGIM India Insta Cash (G) 4.555% 6.304% 6.703%
Data Source: Morningstar

Key takeaways from the October 2020 rankings

• Equity large cap funds improved performance in the last one month on a positive Nifty with private banks and IT providing the much needed boost.

• The alpha is visible more from mid caps and multi-caps, despite the higher volatility as large cap funds struggledfrom sector rotation and the kurtosis effect.

• With the latest monetary policy hinting at sustained accommodative stance, longer duration bond funds benefited during the month, which is revealed in returns.

The Indian markets have been going through sector rotation on a consistent basis with shifting leadership. In October, it was private banks and IT that provided the requisite thrust. For the markets to be supportive, the missing link is pick-up in domestic demand and improved quarterly performance by Indian companies in the second quarter.

A silent trend to watch is the shift towards passive asset classes like indices, ETFs and gold. The COVID crisis and the ensuing uncertainty have ensured a much bigger role for passive funds in the overall scheme of things. That could be interesting!

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