Which are the top-performing mutual funds in the last 10 years

 Did you know? Recently, the Modi government completed 10 years since it came to power, and on April 09 the BSE Sensex touched its record high of 75,000 points. It was a 3-fold jump from 25,000 points in 2014.

 

The SIP contribution has also touched its all-time high of Rs. 19,271 crore in March. This shows the investor's confidence in Mutual funds and commitment to disciplined wealth accumulation through regular investment.

 

Furthermore, the mutual fund industry added 6.8 million investors in FY24 which is 70% more than FY23. With such a large number of unique investors arises the problem of fund selection.

 

Which is a good fund to do investment or a SIP? It can be a real headache to pick the right scheme with so many options available under each category.

 

To solve this problem we have come up with the list of best equity funds under multiple categories. So stay tuned and read on.

 

The top-performing funds are those that have beaten their respective benchmark indices based on their 10-year SIP returns.

 

Additionally, these funds are also subjected to rolling returns and consistency of performance to select the best of the lot.

 

So let’s start with Large caps.

 

The first round of test (10-year SIP returns)

 

Large Cap Funds

 

These funds invest in the top 100 companies in terms of market capitalization. Which makes them relatively lower risk.

The benchmark for this category is Nifty 100 TRI which delivered 15.34% over the 10 years. Out of 24 funds, 10 funds managed to beat Nifty 100 TRI.

 

The top five schemes that delivered 16.69-18.44 returns included: Nippon India Large Cap, ICICI Prudential Bluechip, Baroda BNP Paribas Large Cap, Canara Robeco Bluechip Equity, and Edelweiss Large Cap.

Mid-Cap Funds

 

These funds invest in mid-sized companies that are ranked between 101 to 250 in terms of market capitalization.

 

The benchmark for this category is the Nifty Midcap TRI 150. Out of the 21 funds only 5 funds were able to beat the benchmark, so the Midcap category wasn’t much profitable for the investors.

 

The top five performers included: Quant Midcap, Motilal Oswal Midcap, Edelweiss Midcap, HDFC Midcap Opportunities, and Nippon India Growth.

 

Small-Cap Funds

 

One of the most interesting categories that have gotten investors’ attention is the Small caps. These funds invest at least 65% in the companies ranked below 250 in terms of market cap.

 

The benchmark for this category is Nifty Smallcap TRI 250. Out of the 12 schemes 10 have outperformed the benchmark. The top 5 performers included: Quant, Nippon India, SBI, HDFC, Axis, and Kotak.

 

Large- & Mid-Cap funds

 

These funds allocate about 35% to large-cap and mid-cap stocks. 7 funds outperformed their benchmark out of 18 funds. Quant Large & Midcap, Kotak Opportunities, Mirae Asset Large & Midcap, and Bandhan Core Equity were the top performers who beat the Nifty Large Midcap 250 TRI benchmark.

 

Flexi-cap Funds

As the name suggests, these funds invest across sectors and market capitalizations. Out of the 16 schemes, 8 were able to beat the benchmark.

The top performers who beat the Nifty 500 TRI benchmark included: Quant Flexicap, Parag Parikh Flexi Cap, HDFC Flexi Cap, Franklin India Flexi Cap, and JM Flexicap.

 

Multi-cap Funds

 

These funds have to invest 25% across each market capitalization, including large-cap,

mid-cap, and small-cap stocks according to the SEBI mandate. Out of the 10 funds 6 managed to beat the benchmark Nifty 500 TRI.

 

These included: Quant Active, Nippon India, ICICI Prudential, Baroda BNP Paribas, Invesco India, and Sundaram Multi cap fund.

 

 

The second test (The mean 5-year daily rolling returns for 10 years and the funds must have beaten the benchmark 60% of the time)

 

The Fund choices include

 

●             Large-cap - Mirae Asset Large Cap, ICICI Prudential Bluechip, Baroda BNP Paribas Large Cap, Canara Robeco Bluechip Equity, and Edelweiss Large Cap have beaten the benchmark 75% of the time.

 

●             Mid-cap - Edelweiss Mid Cap fund, beaten the benchmark 90% of the time.

 

●             Small-cap - Axis Small Cap, Nippon Small Cap, and SBI Small Cap have outperformed the benchmark 100% of the time.

 

●             Large- & mid-cap - Mirae Asset Large & Midcap, Kotak Equity Opportunities, Canara Robeco Emerging Equities, and Quant Large & Midcap. These funds have beaten the benchmark 75% of the time.

 

●             Flexi-cap - Parag Parikh Flexi Cap and Quant Flexi Cap are the best funds apart from JM Flexicap, Canara Robeco Flexi Cap, and Kotak Flexi Cap

 

●             Multi-cap - Quant Active, with 100% outperformance, and Invesco India Multicap and ICICI Multicap with 64-65 percent outperformance.

 

 

These funds can be considered for long-term SIP. But you should consult a financial expert before doing investments. This research was done by ACE MF as of April 10th. For more such insightful blogs, do visit our website Swaraj Finpro