India's best performing mutual funds for May 2021

One year equity fund returns in May-21 are sharply higher compared to Apr-21; largely because the Nifty gained 6.51% in May-21 against a mildly negative return in Apr-21.

Jun 04, 2021 11:06 IST India Infoline News Service

In May-21 the Nifty  closed decisively higher by 6.51% as there was literally no dispute of whether the bulls were in charge or the bears were in charge. The Nifty gains led to the index closing the month of May-21 at a record level of 15,483 even as the mid-cap index also gained by a healthy 7.5% during the month. However, in the last 2 weeks of May-21, the entire action shifted out of the mid-caps and small caps to the large caps.

On the debt front, bond yields are once again well above the 6% mark. While bond markets are willing to buy the RBI assurance on the trajectory of rates and monetary stance, they cannot wish away the fact that borrowings will rise by another Rs158,000cr in FY22. That will keep the pressure on the bond yields to stay above the 6% mark. Now for the best equity and debt fund performers in the month of May 2021.

1. Equity Large Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Canara Robeco Blue-Chip (G) 56.461% 16.524% 16.441%
Axis Blue-Chip Fund (G) 50.353% 15.047% 16.015%
Mirae Asset Large Cap (G) 61.306% 13.479% 15.701%
Data Source: Morningstar

2. Equity Multi-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Active Fund (G) 115.220% 25.856% 22.051%
Principal Multi-Cap Fund (G) 68.327% 9.978% 15.289%
INVESCO India Multi-Cap (G) 71.975% 10.787% 14.437%
Data Source: Morningstar

3. Equity Mid-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid Cap Fund (G) 63.600% 18.224% 18.966%
PGIM India Mid-Cap (G) 109.311% 20.311% 18.526%
Kotak Emerging Equity (G) 89.581% 15.345% 17.492%
Data Source: Morningstar

4. Equity Linked Savings Schemes (Tax Saving)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 127.213% 27.609% 22.907%
Mirae Tax Saver Fund (G) 79.842% 18.267% 21.126%
BOI AXA Tax Advantage (G) 77.240% 15.153% 19.379%
Data Source: Morningstar

5. Balanced Funds (Aggressive Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 93.480% 22.825% 17.468%
ICICI Pru Equity & Debt (G) 56.686% 12.988% 14.445%
Canara Robeco Hybrid (G) 43.330% 13.779% 14.438%
Data Source: Morningstar

6. Balanced Funds (Conservative Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 16.981% 9.223% 9.983%
Kotak Debt Hybrid (G) 22.806% 10.533% 9.823%
Canara Robeco Hybrid (G) 18.158% 10.624% 9.183%
Data Source: Morningstar

7. Arbitrage Funds (Cash-Futures)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 3.130% 5.275% 5.687%
Kotak Equity Arbitrage (G) 3.242% 5.284% 5.664%
Edelweiss Arbitrage Fund (G) 2.980% 5.293% 5.660%
Data Source: Morningstar

8. Government Securities Funds (Gilt Funds)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
IDFC G-Sec Fund (G) 4.635% 11.346% 9.505%
Nippon India Gilt Fund (G) 3.443% 10.089% 9.337%
SBI Magnum Gilt Fund (G) 4.101% 10.168% 9.327%
Data Source: Morningstar

9. Credit Risk Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 9.725% 8.818% 8.438%
HDFC Credit Risk Fund (G) 12.331% 9.043% 8.342%
SBI Credit Risk Fund (G) 9.671% 8.327% 8.284%
Data Source: Morningstar

10. Liquid Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st May-21):

Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 4.450% 6.071% 6.418%
IDBI Liquid Fund (G) 3.480% 5.673% 6.140%
Axis Liquid Fund (G) 3.236% 5.555% 6.112%
Data Source: Morningstar

Key takeaways from May 2021 Mutual Fund performance
  • One year equity fund returns in May-21 are sharply higher compared to Apr-21; largely because the Nifty gained 6.51% in May-21 against a mildly negative return in Apr-21. Even mid-caps and small caps outshone their Apr-21 performance in May.
  • Large caps, mid-caps and even multi-caps are starting to show attractive compounded returns over the last five years that is well above the Nifty returns. Clearly, there is alpha at play among the top performers in the equity categories.
  • Gilt fund returns continued to be volatile with a downward bias as yields have shown a tendency to harden in the midst of a likely spike in government borrowings.
The good news, once again, is that winners across categories are consistent making it a lot more predictable for investors.

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