India’s best performing mutual funds for September 2020

For September 2020, here are the top performers under various categories of mutual funds.

Oct 01, 2020 11:10 IST India Infoline News Service

The months of July and August were trying times with equity funds seeing net outflows. That has impacted the investment strategy of fund managers. Kurtosis is also impacting the performance of fund managers as the Nifty and Sensex are being driven by just a handful of stocks high market cap stocks.

SEBI has made granular changes to the portfolio mix of multi-cap funds. It could be a boost for mid cap and small cap stocks but it may not be practically workable. SEBI is also planning stringent regulations for debt funds and that could impact sentiments. For September 2020, here are the top performers under various categories.
  1. Equity Large Cap Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) -1.286% 8.991% 10.348%
Mirae Asset Large Cap (G) 1.011% 5.163% 9.893%
Canara Robeco Blue-chip (G) 6.649% 8.365% 9.823%
Data Source: Morningstar
  1. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh Long Term (G) 23.969% 12.714% 14.569%
Quant Active Fund (G) 26.056% 11.652% 12.464%
Canara Robeco Equity (G) 7.288% 7.712% 9.293%
Data Source: Morningstar
  1. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
DSP Mid Cap Fund (G) 13.765% 5.541% 11.549%
Axis Mid Cap Fund (G) 12.272% 11.444% 10.523%
INVESCO India Mid Cap (G) 13.898% 6.624% 9.693%
Data Source: Morningstar
  1. Equity Linked Savings Schemes (Tax Saving)
 Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 25.791% 9.040% 15.431%
BOI AXA Tax Advantage (G) 16.965% 7.501% 10.694%
Canara Robeco TaxSaver (G) 10.568% 9.338% 10.042%
Data Source: Morningstar
  1. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 16.647% 8.216% 10.267%
Mirae Asset Hybrid (G) 3.297% 5.605% 9.327%
Canara Robeco Hybrid G) 8.241% 7.272% 9.278%
Data Source: Morningstar
  1. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 8.567% 7.348% 8.793%
Kotak Debt Hybrid (G) 9.045% 6.186% 7.861%
Canara Robeco Hybrid (G) 10.271% 7.202% 7.224%
Data Source: Morningstar
  1. Arbitrage Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Edelweiss Arbitrage Fund (G) 4.962% 5.777% 6.019%
Nippon Arbitrage Fund (G) 4.731% 5.866% 5.996%
Kotak Equity Arbitrage (G) 4.746% 5.729% 5.972%
Data Source: Morningstar
  1. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 10.432% 8.995% 9.638%
Aditya Birla G-Sec Fund (G) 10.446% 8.253% 9.366%
DSP G-Sec Fund (G) 11.863% 9.180% 9.237%
Data Source: Morningstar
  1. Credit Risk Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 9.876% 7.968% 8.206%
HDFC Credit Risk Fund (G) 9.181% 7.132% 8.086%
Kotak Credit Risk Fund (G) 7.221% 6.948% 7.817%
Data Source: Morningstar
  1. Liquid Funds
Top performing Regular Plans (Growth Option) based on 5-year returns (as on 30th Sep-20):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 5.423% 6.569% 6.983%
PGIM Insta Cash Fund (G) 4.808% 6.408% 6.787%
Aditya Birla Liquid Plan (G) 4.889% 6.420% 6.785%
Data Source: Morningstar


Key takeaways from the September rankings
  • Equity large cap funds saw a dent in their performance in Sep-20 due to the sharp correction of 2800 points in the third week.
  • Mid cap funds and multi-cap funds continued to outperform the large cap funds by a margin as Kurtosis restrained large caps from bettering the index.
  • G-Sec funds saw some tepidness in returns after the risk of a sharply higher fiscal deficit pushed yields above 6% in September, depressing bond prices in the process.
After a series of robust months for the Nifty, the index gave just 1.57% returns in Sep-20. The volatility in large caps impacted performance of large cap funds. The risk of equity outflows is real for large cap funds. However, mid cap index was up 9.8% in Sep-20 and that reflected in the performance of mid cap and multi cap funds.

The focus now shifts to regulatory changes with respect to multi cap funds and income funds. MFs need to prepare for more stringent rules imposed by SEBI. That could be the real acid test for the mutual funds in Oct-20!

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