India's best performing mutual funds for September 2021

FPI flows were tentative but equity markets got a boost from the dovish Fed statement. It was ambiguous enough to hint at back-ending of taper and rate hikes. Mid-cap and small-cap indices displayed respective gains of 10.34% and 6.11% in Sep-21.

Oct 05, 2021 10:10 IST India Infoline News Service

If August 2021 belonged to large caps, Sep-21 saw a rebound in mid-caps and small caps. After a smart 8.69% gain on Nifty in Aug-21, September saw healthy 2.84% gains. Sensex scaled past 60,000 during September, scaling last 5,000 points in 28 trading sessions flat.

FPI flows were tentative but equity markets got a boost from the dovish Fed statement. It was ambiguous enough to hint at back-ending of taper and rate hikes. Mid-cap and small-cap indices displayed respective gains of 10.34% and 6.11% in Sep-21.

Median 10-year bond yields stayed in 6.20-6.22% range through Sep-21 and the spike in US inflation had little impact on Indian bond yields. However, RBI raising reverse repo rates in October policy was highlighted by Citi in late September and is not factored into yields.

Equity Large Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue-Chip Fund (G) 52.524% 20.848% 18.167%
Canara Robeco Blue-Chip (G) 53.575% 21.534% 17.274%
Mirae Asset Large Cap (G) 54.313% 18.675% 16.832%
Data Source: Morningstar
  1. Equity Multi-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Active Fund (G) 81.201% 31.997% 23.868%
Principal Multi-Cap Fund (G) 69.381% 19.009% 16.246%
BNP Paribas Multi-Cap (G) 67.016% 20.054% 15.239%
Data Source: Morningstar
  1. Equity Mid-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Mid-Cap Fund (G) 62.002% 26.010% 20.705%
PGIM India Mid-Cap (G) 87.817% 34.244% 19.853%
Quant Mid-Cap Fund (G) 78.542% 26.307% 19.840%
Data Source: Morningstar
  1. Equity Small-Cap Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Small Cap Fund (G) 92.391% 27.241% 22.244%
Quant Small Cap Fund (G) 115.123% 36.681% 21.909%
SBI Small Cap Fund (G) 70.870% 25.905% 21.907%
Data Source: Morningstar
  1. Equity Linked Savings Schemes (Tax Saving)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 87.336% 32.712% 23.651%
Mirae Tax Saver Fund (G) 64.301% 24.134% 21.004%
BOI AXA Tax Advantage (G) 66.564% 28.781% 20.479%
Data Source: Morningstar
  1. Balanced Funds (Aggressive Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Absolute Fund (G) 69.249% 27.657% 18.919%
BOI AXA Mid and Small (G) 63.656% 21.914% 16.466%
ICICI Pru Equity & Debt (G) 71.082% 18.963% 15.371%
Data Source: Morningstar
  1. Balanced Funds (Conservative Allocation)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Regular (G) 15.465% 11.129% 9.589%
Kotak Debt Hybrid (G) 21.660% 13.501% 9.505%
Canara Robeco Hybrid (G) 16.027% 12.243% 8.921%
Data Source: Morningstar
  1. Arbitrage Funds (Cash-Futures)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 3.764% 4.968% 5.456%
L&T Arbitrage Opps Fund (G) 3.757% 5.014% 5.429%
Kotak Arbitrage Fund (G) 3.914% 4.968% 5.424%
Data Source: Morningstar
  1. Government Securities Funds (Gilt Funds)
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
IDFC G-Sec Fund (G) 4.689% 11.378% 8.397%
Edelweiss G-Sec Fund (G) 7.640% 11.161% 8.231%
Nippon India Gilt Fund (G) 5.532% 10.517% 8.119%
Data Source: Morningstar
  1. Corporate Bond Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Birla Corporate Bond (G) 6.130% 9.283% 8.100%
HDFC Corporate Bond (G) 6.228% 9.474% 8.074%
Kotak Corporate Bond (G) 5.557% 8.345% 7.771%
Data Source: Morningstar
  1. Credit Risk Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 7.848% 8.914% 7.966%
HDFC Credit Risk Fund (G) 10.108% 9.395% 7.891%
Baroda Credit Risk Fund (G) 21.362% 8.079% 7.681%
Data Source: Morningstar
  1. Liquid Funds
Top performing Regular Plans (Growth Option) on 5-year returns (as on 30th Sep-21):
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 4.025% 5.630% 6.122%
IDBI Liquid Fund (G) 3.333% 5.202% 5.871%
Mahindra Manulife Liquid (G) 3.247% 5.123% 5.838%
Data Source: Morningstar

During September 2021 equity fund alpha essentially came from the small cap and mid-cap funds as the Nifty-50 gained relatively less. Returns on mid-cap and small cap funds edged higher on the back of a robust show. Overall, equity funds improved over Aug-21.

Yields on most debt funds were steady with the bond market outlook stabilizing. However, long-duration bond prices have trended lower due to the risk of higher inflation and a likely RBI reverse repo hike. Overall, top ranked funds across categories were consistent.

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