India’s top performing mutual fund schemes in June 2023

1 Jul 2023 , 12:00 PM

Firstly, FPI flows in June were $5.7 billion, on top of $5.3 billion infused in May 2023. The Nifty showed an incredible rally in the last 3 days of the month, closing at an all-time high of 19,189. The markets were enthused by the RBI pausing on rates, Fed holding rates as well as the current account deficit (CAD) coming in at an attractive 0.2% of GDP. For the month of June 2023, Nifty gained by 3.53%, Nifty Mid-cap 100 by 5.90% and Nifty Small-cap 100 by 6.60%.

Bond markets saw a bounce in yields, after the sharp fall in late May to below the 7% mark. The 10-year benchmark bonds closed the month of June with yields of 7.11%, higher than the 6.98% we saw at the close of May 2023. This can be largely attributed to the hawkish tone of the RBI members in the MPC, even as the Fed view stayed hawkish and the Bank of England hiked rates by 50 bps during the month. The RBI also sucked up excess liquidity, which contributed to higher bond yields in the month. Let us now turn to the Jun-23 mutual fund performance; in equity and debt funds.

1. Equity Large-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Canara Robeco Blue-Chip (G)	24.246%	23.459%	16.004%
Nippon India Large Cap (G)	32.941%	31.423%	15.362%
IDBI India Top 100 Equity (G)	24.590%	25.377%	14.729%
Category Average	23.384%	22.960%	12.574%
BSE 100 (TR) Index	23.976%	25.160%	13.748%
Data Source: Morningstar

1. Equity Multi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Active Fund (G)	26.516%	38.912%	22.928%
Mahindra Manulife Multi (G)	29.349%	32.060%	19.155%
Nippon India Multi Cap (G)	38.604%	38.757%	17.624%
Category Average	28.449%	30.128%	16.252%
BSE 500 (TR) Index	23.977%	26.403%	13.872%
Data Source: Morningstar

1. Equity Flexi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Flexi Cap Fund (G)	29.046%	40.373%	22.327%
PPFAS Flexi Cap Fund (G)	27.344%	28.998%	19.481%
PGIM India Flexi Cap Fund (G)	23.162%	29.494%	18.227%
Category Average	24.427%	24.879%	13.675%
BSE 500 (TR) Index	23.977%	26.403%	13.872%
Data Source: Morningstar

1. Equity Mid-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Mid-Cap Fund (G)	30.749%	40.652%	22.667%
PGIM India Mid-Cap Fund (G)	23.142%	39.037%	21.385%
MOSL Mid-Cap 30 (G)	39.463%	40.471%	19.639%
Category Average	29.148%	31.844%	16.149%
BSE Midcap (TR) Index	34.160%	31.632%	14.571%
Data Source: Morningstar

1. Equity Small-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Small Cap Fund (G)	42.170%	60.088%	27.210%
Axis Small Cap Fund (G)	30.403%	39.284%	24.112%
Nippon Small Cap Fund (G)	40.932%	48.089%	22.543%
Category Average	32.180%	41.245%	18.583%
BSE Midcap (TR) Index	32.628%	39.203%	16.338%
Data Source: Morningstar

1. Equity Linked Savings Schemes (Tax Saving)     

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Tax Plan (G)	25.726%	43.143%	25.252%
Mirae Asset Tax Saver (G)	22.772%	28.204%	17.732%
Canara Robeco Tax Saver (G)	24.660%	27.614%	17.453%
Category Average	24.976%	25.367%	13.262%
BSE 200 (TR) Index	23.183%	25.549%	13.903%
Data Source: Morningstar

1. Index Funds (Equity)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Nippon India Sensex Fund (G)	23.326%	24.030%	13.821%
HDFC India Sensex Fund (G)	23.316%	24.083%	13.788%
ICICI Pru Sensex Fund (G)	23.238%	23.920%	13.783%
Category Average	24.313%	10.408%	12.536%
Benchmark Index	N.A.	N.A.	N.A.
Data Source: Morningstar

1. Balanced Funds (Aggressive Allocation)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Absolute Fund (G)	20.054%	34.177%	20.932%
ICICI Pru Equity & Debt (G)	21.940%	28.977%	16.630%
Baroda BNP Paribas AEH (G)	20.931%	20.617%	15.037%
Category Average	20.351%	21.213%	11.958%
CRISIL MIF Blended Index PR	10.678%	7.785%	8.945%
Data Source: Morningstar

1. Balanced Funds (Conservative Allocation)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Kotak Debt Hybrid (G)	14.071%	13.421%	11.366%
SBI Conservative Hybrid (G)	13.146%	13.189%	10.097%
Canara Robeco Hybrid (G)	10.617%	10.214%	10.028%
Category Average	10.473%	10.342%	7.657%
CRISIL MIP Blended Index PR	10.678%	7.785%	8.945%
Data Source: Morningstar

1. Dynamic Asset Allocation Funds (BAF)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
HDFC BAF (G)	26.845%	28.146%	15.262%
Edelweiss BAF (G)	17.676%	18.342%	13.022%
ICICI Prudential BAF (G)	14.374%	17.087%	11.502%
Category Average	16.500%	14.362%	9.507%
Benchmark Index	N.A.	N.A.	N.A.
Data Source: Morningstar

1. Arbitrage Funds (Cash-Futures)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Edelweiss Equity Arbitrage (G)	6.601%	5.106%	5.817%
Invesco Arbitrage Fund (G)	7.043%	5.223%	5.748%
Nippon Arbitrage Fund (G)	6.577%	5.034%	5.745%
Category Average	5.872%	4.340%	4.952%
Benchmark Index	N.A.	N.A.	N.A.
Data Source: Morningstar

1. Government Securities Funds (Gilt Funds)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
DSP G-Sec Fund (G)	8.280%	5.086%	8.963%
Bandhan G-Sec Fund (G)	7.677%	4.326%	8.911%
SBI Magnum Gilt Fund (G)	9.038%	5.496%	8.854%
Category Average	7.657%	4.239%	7.689%
I-SEC MIBEX Index TR	8.239%	4.864%	7.996%
Data Source: Morningstar

1. Corporate Bond Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
HSBC Corporate Bond (G)	7.985%	4.826%	8.185%
ABSL Corporate Bond (G)	7.469%	5.611%	7.744%
HDFC MF Corporate Bond (G)	7.691%	5.428%	7.734%
Category Average	6.879%	4.967%	6.877%
CRISIL ST Bond Fund Index PR	7.190%	5.225%	7.215%
Data Source: Morningstar

1. Credit Risk Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
ICICI Pru Credit Risk Fund (G)	7.636%	7.433%	8.271%
HDFC Credit Risk Fund (G)	7.590%	7.502%	8.079%
Baroda Credit Risk Fund (G)	8.268%	12.347%	7.819%
Category Average	7.485%	9.824%	4.806%
CRISIL ST Bond Fund Index PR	7.190%	5.225%	7.215%
Data Source: Morningstar

1. Liquid Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Jun-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Liquid Plan (G)	6.362%	5.069%	5.879%
Mahindra Manulife Liquid (G)	6.557%	4.547%	5.404%
IDBI Liquid Fund (G)	6.436%	4.520%	5.393%
Category Average	5.651%	3.840%	4.815%
CRISIL Liquid Fund Index PR	6.571%	4.702%	5.503%
Data Source: Morningstar

 

Here are some key takeaways from the June 2023 mutual fund rankings.

1. Equity funds have generally given much better 1 year return compared to the previous month and that can be attributed to the sharp rally in equity indices in June 2023 as well as the inordinately low base of June 2022 (the last month of major FPI selling). Longer period returns have been more stable, although they have also improved. The outperformance has been more pronounced in the case of small cap and mid cap funds.

    

2. Across most categories, the top-3 funds have comfortably beaten the benchmark index returns on TRI basis. This is indicative of alpha generation by the category leaders on a consistent basis. Across equity categories, the median returns have also been better than the index returns; although the experience is mixed in the case of debt funds.

    

3. Debt funds have given lower returns on a 1-year basis compared to last month, and that is due to the fund NAVs being impacted by the spike in yields. That has suppressed bond yields and the impact is more visible in short term returns.

One thing must not be missed out. Top rankers across equity and debt categories have been largely consistent over the past few months; barring a few minor shifts. That underlines the fact that past returns in this case are a reliable indicator of future performance; something that adds a lot of value from an advisory perspective.