India's best performing mutual funds for January 2022

1 Feb 2022 , 09:18 AM

For the month of January 2022, Nifty and Mid-Cap Nifty closed flat with marginal losses of -0.1% and -0.2% respectively. However, these monthly returns may not be indicative of the larger pain that specific sectors like IT and FMCG went through in the month of Jan-22. The lower operating margins continued to be an overhang on  most sectors.

For the month of Jan-22, FPIs sold heavily to the tune of Rs33,304cr as the spectre of rising Fed rates spooked global investors. Apart from a rush to safety, most FPIs have been sceptical about Indian markets due to a combination of rich valuations and relatively cheaper Asian markets. High inflation has also been a headwind.

The 10-year benchmark bond yields spiked by almost 30 bps during Jan-22 to scale 6.8%, before settling lower. However, with the US Fed embarking on an aggressive time table of 4-5 rate hikes, fiscal deficit likely to remain high and oil prices on the rise; bond yields are likely to remain on the higher side. That has hit debt fund returns in Jan-22.

1. Equity Large-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Axis Blue-Chip Fund (G)	19.316%	18.793%	17.805%
Canara Robeco Blue-Chip (G)	23.147%	21.183%	17.059%
Mirae Asset Large Cap (G)	24.499%	18.006%	15.613%
Data Source: Morningstar

2. Equity Multi-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Active Fund (G)	54.979%	34.512%	24.804%
Sundaram Multi-Cap Fund (G)	44.478%	21.486%	16.764%
Baroda Multi Cap (G)	44.683%	23.476%	15.685%
Data Source: Morningstar

3. Equity Mid-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Mid-Cap (G)	55.075%	29.899%	21.304%
PGIM India Mid-Cap (G)	56.009%	36.897%	21.273%
Axis Mid-Cap Fund (G)	34.993%	25.579%	21.128%
Data Source: Morningstar

4. Equity Small-Cap Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Small Cap Fund (G)	90.009%	40.424%	22.628%
Axis Small Cap Fund (G)	56.919%	33.159%	22.134%
SBI Small Cap Fund (G)	44.894%	29.113%	22.129%
Data Source: Morningstar

5. Equity Linked Savings Schemes (Tax Saving)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Tax Plan (G)	57.581%	36.481%	24.127%
Mirae Tax Saver Fund (G)	31.623%	23.862%	19.881%
BOI AXA Tax Advantage (G)	35.585%	28.381%	19.468%
Data Source: Morningstar

6. Balanced Funds (Aggressive Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Absolute Fund (G)	41.872%	29.020%	19.487%
BOI AXA Mid and Small (G)	48.529%	24.908%	17.190%
ICICI Pru Equity & Debt (G)	44.442%	21.376%	15.229%
Data Source: Morningstar

7. Balanced Funds (Conservative Allocation)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
ICICI Pru Regular (G)	10.330%	10.393%	9.232%
Kotak Debt Hybrid (G)	12.689%	12.991%	9.026%
Canara Robeco Hybrid (G)	9.703%	11.299%	8.580%
Data Source: Morningstar

8. Arbitrage Funds (Cash-Futures)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Nippon India Arbitrage (G)	4.039%	4.745%	5.350%
Kotak Arbitrage Fund (G)	4.147%	4.762%	5.343%
Edelweiss Arbitrage Fund (G)	4.019%	4.794%	5.328%
Data Source: Morningstar

9. Government Securities Funds (Gilt Funds)

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
IDFC G-Sec Fund (G)	2.056%	9.553%	7.582%
Edelweiss G-Sec Fund (G)	4.042%	9.357%	7.559%
ABSL G-Sec Fund (G)	3.268%	8.685%	7.178%
Data Source: Morningstar

10. Corporate Bond Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Birla Corporate Bond (G)	4.298%	8.259%	7.598%
HDFC Corporate Bond (G)	3.977%	8.382%	7.517%
Kotak Corporate Bond (G)	4.122%	7.448%	7.319%
Data Source: Morningstar

11. Credit Risk Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
ICICI Pru Credit Risk Fund (G)	6.296%	8.398%	7.647%
HDFC Credit Risk Fund (G)	6.652%	8.727%	7.462%
Baroda Credit Risk Fund (G)	18.783%	7.561%	7.232%
Data Source: Morningstar

12. Liquid Funds

Top performing Regular Plans (Growth Option) on 5-year returns (as on 31st Jan-22):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Liquid Plan (G)	3.950%	5.221%	5.898%
IDBI Liquid Fund (G)	3.424%	4.731%	5.656%
Mahindra Manulife Liquid (G)	3.353%	4.652%	5.608%
Data Source: Morningstar

In Jan-22 equity fund returns were negatively impacted across large caps and mid-caps. While the overall indices may have closed flat in Jan-22, the FPI selling at Rs33,304cr was focused on the most liquid stocks. This impacted 1-year returns of most equity oriented funds in Jan-22.

The tapering of debt fund returns continued especially on longer duration funds. However, liquid funds and floaters did better. The key triggers for bond funds in the coming months will be the completion of Fed taper, rate hike timetable, WPI inflation, RBI Policy and the Fed outlook on balance sheet trimming. At a macro level, oil and fiscal deficit numbers will also hold the key.