Top 10 performing mutual funds for January 2020

We look at the performance of the top performers across 10 different categories of funds, where retail investors show substantial interest.

Feb 06, 2020 11:02 IST India Infoline News Service

Mutual funds have become the fulcrum of retail investments in the last 5 years with the overall AUM going up from Rs800,000cr to Rs27,00,000cr between 2014 and 2019. During this period, the retail participation in mutual funds has crossed that of institutional investors; a classic signal of MFs coming of age as a retail product. But, that also puts greater pressure on mutual funds to show consistent performance. We look at the performance of the top performers across 10 different categories of funds, where retail investors show substantial interest. For the sake of simplicity, we have only considered Growth Option. Also, we have ignored Direct Plans and only considered Regular Plans.

Here are the top 10 performing mutual funds for January 2020

 
Equity Large Cap Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Axis Blue Chip Fund (G) 20.664% 18.203% 10.488%
Mirae Asset Large Cap (G) 11.193% 12.219% 10.416%
Canara Robeco Bluechip (G) 17.789% 13.639% 9.236%
Data Source: Morningstar
 
Equity Multi-Cap Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Parag Parikh Long Term (G) 15.422% 13.797% 11.458%
Motilal Oswal Multicap 35 (G) 11.389% 8.818% 10.946%
SBI Magnum Multi Cap (G) 14.025% 10.005% 10.084%
Data Source: Morningstar
 
Equity Mid Cap Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
DSP Mid Cap Fund (G) 19.946% 8.924% 11.126%
Kotak Emerging Equity (G) 20.619% 9.639% 11.102%
Axis Mid Cap Fund (G) 21.097% 16.747% 10.457%
Data Source: Morningstar
 
Equity Linked Savings Schemes (Tax Saving)
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Motilal Oswal LT Equity (G) 21.521% 11.454% 13.566%
Axis Long Term Equity (G) 23.570% 16.157% 11.078%
Tata India Tax Saving (G) 12.991% 11.165% 10.611%
Data Source: Morningstar
 
Balanced Funds (Aggressive Allocation)
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
DSP Equity and Bond Fund (G) 20.206% 9.460% 9.767%
SBI Equity Hybrid Fund (G) 17.899% 11.892% 9.371%
Canara Robeco Hybrid G) 14.117% 10.993% 8.991%
Data Source: Morningstar
 
Balanced Funds (Conservative Allocation)
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Savings Fund (G) 10.567% 8.272% 8.643%
Kotak Debt Hybrid Fund (G) 12.105% 5.978% 7.584%
SBI Debt Hybrid Fund G) 10.021% 5.045% 7.135%
Data Source: Morningstar
 
Arbitrage Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 6.321% 6.299% 6.561%
Edelweiss Arbitrage Fund (G) 6.302% 6.173% 6.503%
Indiabulls Arbitrage Fund (G) 6.222% 5.958% 6.488%
Data Source: Morningstar
 
Government Securities Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 14.154% 7.850% 8.960%
Aditya Birla G-Sec Fund (G) 12.261% 7.294% 8.604%
SBI Magnum Gilt Fund (G) 14.725% 7.255% 8.565%
Data Source: Morningstar
 
Credit Risk Funds
 
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Kotak Credit Risk Fund (G) 9.635% 7.211% 8.274%
ICICI Pru Credit Risk Fund (G) 10.300% 7.649% 8.258%
HDFC Credit Risk Fund (G) 9.706% 6.773% 8.044%
Data Source: Morningstar
 
Liquid Funds
The leaders in this category based on five year returns (as of 04th Feb 2020) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Liquid Plan (G) 6.908% 6.922% 7.483%
PGIM Insta Cash Fund (G) 6.498% 6.908% 7.320%
Baroda Liquid Fund (G) 6.402% 6.874% 7.312%
Data Source: Morningstar
 
Key points to consider before investing in mutual funds
The above analysis is based on the growth option of Regular Plans. However, Direct Plans can result in substantial cost saving. In the case of equity funds such savings can be as high 100-125 basis points. You can make a choice accordingly. Secondly, the reason for looking at 3 distinct period returns is to underline the consistency. A fund that gives high returns over one year and low returns over the long term is not to be really preferred because their performance will be largely vulnerable to the timing of your entry and exit. Thirdly, AUM of the fund and pedigree are also critical factors when selecting a fund as larger AUMs give the additional level of comfort to the investor. Last, but not the least, the fund you select must fit into your financial plan and your risk appetite. If you have low risk capacity then the debt component of your portfolio cannot have credit risk funds.
 
While returns are a good starting point, you need to fine tune your selection further with more qualitative parameters.

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