80% equity mutual fund schemes positive, giving up to 53% returns in 1 year

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BSE Sensex, the benchmark index touched its all time high on Monday led by positive cues as US election results triggered risk appetite globally. Sensex was at 42,417.35, up 524 points, while Nifty was 12,427 at opening session. Last week was remarkable for the equity markets. BSE Sensex has gained 7% since the beginning of the last week. Are the gains reflecting in the performance of mutual funds? Well, 234 out of 298 equity mutual fund schemes are giving positive returns in the last one year now, with the highest returns being 53% in a small cap fund.

We have excluded sectoral schemes from the study.

Equity mutual funds have witnessed an outflow of over 7,200 crore and also there was a drop in inflow from the systematic investment plan (SIP) folios during the September quarter.

Did you miss the remarkable rally by redeeming or stopping your investments in mutual funds in the last one year? Well, the data ‘still’ shows a mixed response. The largest equity mutual funds failed to deliver in the last one year. The biggest schemes are mostly large cap or multi cap schemes.

Mid and small cap funds make a come back

Most of the schemes which outshined are very small schemes in terms of the assets under management (AUM). Also, most of them belong to mid cap and small cap category.

Quant Small Cap Fund, which topped the one-year performance among equity schemes with 53% returns, manages assets worth 49 crore. Similarly, BOI AXA Small Cap Fund grew by 35% in the last one year, holds an AUM of 80 crore.

9 out of the top 10 actively-managed equity mutual fund schemes in terms of highest returns fall under the 500 crore AUM segment. The one exception in the top 10 performers is Parag Parikh Long Term Equity Fund, managing assets worth 4,798 crore.

Here’s a list of schemes which have delivered returns over 15% in the last one year. Most of them are very small schemes. Exceptions (big schemes, holding AUM of over 1,000 crore) have been highlighted. The schemes include- Parag Parikh Long Term Equity Fund, DSP Small Cap Fund, Kotak Small Cap Fund, UTI Mid Cap Fund and UTI Equity Fund.

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Equity schemes giving over 15% returns in the last one year. Highlighted schemes are holding assets over 1,000 crore, Returns as on November 6. Source: Value Research

These schemes should not be taken as our recommendations. The data has been taken from Value Research. Do not base your investment decision on the basis of this study. The aim of this story is just to catch the performance of mutual funds given that the markets are back at pre-covid levels. One year is too short to evaluate an equity scheme. Also, mid cap and small cap schemes carry high risk. These schemes are not for conservative investors.

Last time Sensex was at its all time high of 42,274 on January 20 in the beginning of this year. Currently, the 30-stock index is hovering around 42,308.

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