India’s best performing mutual funds for March 2023

3 Apr 2023 , 09:43 AM

The overall number may be positive, but that is more due to the big block investment in Adani group stocks by GQG Investments. Even as the Adani sell-off appeared to subside, there was a new devil on the street as global banks folded up like nine pins. For the month of March 2023, the markets were very mixed. The Nifty and Sensex ended March 2023 with gains of 0.32% and 0.05% respectively. However, the Mid cap index fell by -0.27% while the Small Cap index fell by -1.76% in March. Small cap index fell nearly 13.8% for FY23 overall.

Bond markets saw tapering of yields. The banking crisis led bond yields higher to 7.5%, which later tapered to 7.32% by close of the month. While the markets have been factoring in more hawkishness since early February 2023, the banking crisis raised hopes that the Fed may go slow on rate hikes. After all, a good part of the banking crisis was also an outcome of sharply higher yields. However, the latest US policy statement shows that it has not changes its stance; only modified its strategy. Here is the mutual fund show; on equity and debt.

1. Equity Large-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Canara Robeco Blue-Chip (G)	0.671%	24.856%	14.287%
Edelweiss Large Cap Fund (G)	3.762%	27.103%	12.773%
Baroda BNP Large Cap (G)	2.419%	23.698%	12.659%
Category Average	-0.272%	24.191%	10.565%
BSE 100 (TR) Index	-0.057%	27.424%	11.958%
Data Source: Morningstar

1. Equity Multi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Active Fund (G)	-2.342%	47.076%	19.694%
Mahindra Manulife Multi (G)	-1.088%	33.524%	15.663%
Nippon India Multi Cap (G)	8.336%	36.248%	13.156%
Category Average	1.216%	31.580%	12.857%
BSE 500 (TR) Index	-1.473%	28.681%	11.454%
Data Source: Morningstar

1. Equity Flexi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Flexi Cap Fund (G)	1.721%	48.387%	18.089%
PPFAS Flexi Cap Fund (G)	0.207%	33.817%	17.965%
PGIM India Flexi Cap Fund (G)	-3.171%	35.239%	15.777%
Category Average	-1.667%	26.142%	11.105%
BSE 500 (TR) Index	-1.473%	28.681%	11.454%
Data Source: Morningstar

1. Equity Mid-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Mid-Cap Fund (G)	3.387%	46.844%	19.633%
PGIM India Mid-Cap Fund (G)	-0.086%	44.684%	18.574%
MOSL Mid-Cap 30 (G)	12.035%	37.837%	15.754%
Category Average	1.361%	33.097%	12.025%
BSE Midcap (TR) Index	1.161%	32.725%	9.574%
Data Source: Morningstar

1. Equity Small-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Small Cap Fund (G)	6.475%	68.590%	22.912%
Axis Small Cap Fund (G)	1.361%	37.867%	18.921%
Nippon Small Cap Fund (G)	8.271%	50.533%	16.740%
Category Average	2.222%	42.461%	13.247%
BSE Midcap (TR) Index	-3.593%	42.064%	10.388%
Data Source: Morningstar

1. Equity Linked Savings Schemes (Tax Saving)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Tax Plan (G)	0.529%	51.331%	22.518%
Mirae Asset Tax Saver (G)	-0.069%	31.994%	15.707%
Canara Robeco Tax Saver (G)	0.812%	29.186%	15.627%
Category Average	0.217%	27.198%	10.593%
BSE 200 (TR) Index	-0.609%	28.553%	12.176%
Data Source: Morningstar

1. Index Funds (Equity)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Nippon India Sensex Fund (G)	1.823%	26.900%	13.299%
HDFC India Sensex Fund (G)	1.778%	27.082%	13.267%
Tata S&P BSE Sensex Fund (G)	1.707%	26.403%	13.215%
Category Average	-1.547%	26.777%	11.384%
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 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Absolute Fund (G)	3.800%	38.962%	19.388%
ICICI Pru Equity & Debt (G)	5.092%	31.552%	14.314%
Baroda BNP Paribas AEH (G)	2.628%	21.380%	13.517%
Category Average	1.491%	22.780%	10.256%
CRISIL MIF Blended Index PR	3.008%	8.983%	8.045%
Data Source: Morningstar

1. Balanced Funds (Conservative Allocation)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Kotak Debt Hybrid (G)	5.366%	14.374%	9.931%
Canara Robeco Hybrid (G)	3.742%	11.222%	9.386%
ICICI Pru Regular Savings (G)	4.979%	11.100%	8.893%
Category Average	3.615%	10.800%	6.746%
CRISIL MIP Blended Index PR	3.008%	8.983%	8.045%
Data Source: Morningstar

1. Dynamic Asset Allocation Funds (BAF)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
HDFC BAF (G)	14.045%	29.910%	13.214%
Edelweiss BAF (G)	3.065%	19.333%	11.979%
Nippon India BAF (G)	5.183%	18.380%	10.308%
Category Average	2.943%	16.030%	8.187%
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 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Edelweiss Equity Arbitrage (G)	5.865%	4.893%	5.749%
Nippon Arbitrage Fund (G)	5.742%	4.869%	5.703%
Invesco Arbitrage Fund (G)	6.578%	5.025%	5.653%
Category Average	5.091%	4.090%	4.931%
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 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Bandhan G-Sec Fund (G)	3.034%	5.478%	8.428%
DSP G-Sec Fund (G)	4.922%	5.787%	8.390%
Edelweiss Gilt Fund (G)	4.566%	6.437%	8.233%
Category Average	4.261%	4.923%	7.058%
I-SEC MIBEX Index TR	3.984%	5.555%	7.400%
Data Source: Morningstar

1. Corporate Bond Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
HSBC Corporate Bond (G)	3.497%	5.587%	7.595%
ABSL Corporate Bond (G)	4.824%	6.618%	7.439%
HDFC MF Corporate Bond (G)	4.297%	6.162%	7.312%
Category Average	3.946%	5.612%	6.585%
CRISIL ST Bond Fund Index PR	4.113%	5.758%	6.877%
Data Source: Morningstar

1. Credit Risk Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
ICICI Pru Credit Risk Fund (G)	5.869%	7.467%	8.084%
HDFC Credit Risk Fund (G)	4.694%	7.371%	7.653%
Baroda Credit Risk Fund (G)	5.771%	10.264%	7.513%
Category Average	4.876%	7.382%	4.511%
CRISIL ST Bond Fund Index PR	4.113%	5.758%	6.877%
Data Source: Morningstar

1. Liquid Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Mar-23):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Liquid Plan (G)	5.677%	4.908%	5.885%
IDBI Liquid Fund (G)	5.720%	4.362%	5.418%
Mahindra Manulife Liquid (G)	5.812%	4.358%	5.417%
Category Average	4.982%	3.756%	4.827%
CRISIL Liquid Fund Index PR	5.811%	4.520%	5.505%
Data Source: Morningstar

 

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

1. The volatility in the equity indices resulted in 1-year returns on equity funds tapering in March 2023. However, longer period returns are not impacted. There has been a surge in 3-year returns, but that is due to the March 2020 COVID base effect.

    

2. Across categories, the top-3 funds have comfortably the benchmark index returns on TRI basis. This is indicative of alpha generation by the category leaders on a consistent basis.

    

3. Debt funds have given better returns on a 1-year basis compared to last month. That is because bond yields tapered in the second half of March after the global banking crisis raised hopes that central banks may go slow on rate hikes.

But, the big takeaway is that rankings across equity and debt categories have been largely consistent with previous months. This makes historical returns on a rolling basis, predictive and indicative of future returns on these funds.