BSE Sensex, the benchmark index hit its all-time high on Monday, led by positive signals as the results of the US elections sparked risk appetite globally. Sensex was at 42,417.35, 524 points higher, while Nifty was at 12,427 in the opening session. This past week was remarkable for the equity markets. BSE Sensex has gained 7% since the beginning of last week. Are earnings reflected in mutual fund performance? Well, 234 out of 298 equity mutual fund schemes are giving positive returns in the last year, with the highest returns being 53% in a small-cap fund.
We have excluded sectoral schemes from the study.
Equity mutual funds have seen an exit of more ₹Rs 7.2 billion and there was also a drop in the entry of the Systematic Investment Plan (SIP) folios during the September quarter.
Did you miss the remarkable rally when redeeming or stopping your mutual fund investments in the last year? Well, the data ‘still’ shows a mixed response. The largest equity mutual funds failed to deliver in the past year. The larger schemes are mostly large-cap or multi-cap schemes.
Small and Mid Cap Funds Make a Return
Most of the schemes they eclipsed are very small in terms of assets under management (AUM). Also, most of them fall into the small and mid-cap category.
Quant Small Cap Fund, which outperformed a year among equity schemes with a 53% return, manages assets by value ₹49 crore. Similarly, BOI AXA Small Cap Fund grew 35% in the last year, has an AUM of ₹80 crore.
9 of the top 10 actively managed equity mutual fund schemes in terms of higher returns are found ₹500 crore AUM segment. The only exception in the top 10 is the Parag Parikh Long Term Equity Fund, which manages assets by value ₹4,798 million rupees.
Here is a list of schemes that have returned returns above 15% in the last year. Most of them are very small schemes. Exceptions (large schemes, keeping AUM of more ₹1,000 crore) have been highlighted. Schemes include: Parag Parikh Long Term Equity Fund, DSP Small Cap Fund, Kotak Small Cap Fund, UTI Mid Cap Fund, and UTI Equity Fund.
₹ 1,000 crore, yields as of November 6. Source: Value Research “title =” Stock schemes that give more than 15% returns in the last year. The highlighted schemes have assets above ₹ 1,000 crore, returns as of November 6. Source: Value Research “>
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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 point of this story is simply to capture the performance of mutual funds given that the markets are back at pre-covid levels. A year is too short to evaluate an action scheme. Additionally, mid-cap and small-cap schemes carry high risk. These schemes are not for conservative investors.
The last time Sensex hit its all-time high of 42,274 on January 20 earlier this year. Currently, the 30-share index is hovering around 42,308.
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