How mutual funds fared during Modi's rule in last five years
Were you lucky enough to have invested in the best funds that made the maximum money during the period.
ETMutualFunds.com brings you some interesting figures in the mutual fund space during the last five years of Modi government. You can also check if you were lucky enough to have invested in the best funds that made the maximum money for their investors during the period. We are restricting ourselves to equity funds because five years is a good enough time period to track their performance and the sole aim of investing in equities is to create wealth. Debt funds are not meant to create wealth.
You might have heard mutual fund managers and advisors telling investors that mid cap and small cap funds have higher chances of outperforming large cap funds. Well, the five-year data backs the claim. Small cap funds top the category chart in the five-year period with 20.87 per cent CAGR returns, followed by mid cap funds. Mid cap funds generated an average return of 18.45 per cent in the same period. Multi cap funds have given an average return of 15.73 per cent, large cap funds generated 13.61 per cent, and ELSS category offered an average return of 12.74 per cent.
Moving to individual equity mutual fund schemes, 63 per cent equity schemes outperformed their respective benchmarks. Two schemes have generated CAGR returns over 20 per cent in the five-year period. Seven equity schemes have generated CAGR returns of over 18 per cent. Here are the top mutual fund schemes based on their five-year CAGR returns. We have one multi cap fund and a focused fund as well in the toppers list.
Equity mutual funds which generated the maximum money in 5 years
|Scheme Name||5-yr CAGR returns (%)||AUM (Rs crore)|
|SBI Small Cap Fund||23.97||1,992|
|Mirae Asset Emerging Bluechip Fund||21.80||7,271|
|Canara Robeco Emerg Equities Fund||19.97||4,675|
|Motilal Oswal Multicap 35 Fund||19.93||13,247|
|Reliance Small Cap Fund||19.58||8,050|
|DSP Small Cap Fund||18.50||5,090|
|Kotak Emerging Equity Scheme||18.45||4,028|
|L&T Midcap Fund||17.68||4,503|
|Principal Emerging Bluechip Fund||17.60||2,190|
|L&T Emerging Businesses Fund||17.31||5,989|
|Quant Tax Plan||17.15||10|
|SBI Focused Equity Fund||17.01||4,234|
We also looked for the top equity mutual fund schemes that made the maximum money in these five years when invested through SIP route. Here are our 10 toppers. While you look at the performance, remember you did not invest Rs 6 lakh in one go. You invested it in monthly instalments of Rs 10,000 and the last instalment of these 60 instalments would have hit your bank just a few days ago.
|Scheme Name||Present value of Rs 6 lakh invested via Rs 10,000 per month SIP in 5 years||CAGR returns (%)|
|Mirae Asset Emerging Bluechip||9,16,018||18.57|
|SBI Small Cap Fund||8,83,715||16.87|
|HDFC Small Cap Fund||8,65,723||15.91|
|Mirae Asset Large Cap Fund||8,47,126||14.90|
|JM Core 11 Fund||8,46,934||14.89|
|Canara Robeco Emerging Equities Fund||8,46,259||14.85|
|SBI Focused Equity Fund||8,43,882||14.72|
|Invesco India Contra Fund||8,36,832||14.33|
|Kotak Standard Multicap Fund||8,32,614||14.10|
|Axis Focused 25 Fund||8,29,664||13.94|
Only one equity mutual fund scheme offered negative returns during this period. Baroda Mid-cap Fund generated -0.18 per cent CAGR return in the last five years. Thankfully, it is a very small fund with assets worth Rs 46 crore.
There are some other interesting numbers, too. The mutual fund industry crossed the milestone of Rs 10 lakh crore AUM for the first time in the fifth month of 2014. In fact, during the Modi government’s rule in five years, mutual funds have added more money than the total assets managed by them when he formed the government.
The industry doubled its AUM and crossed Rs 20 lakh crore for the first time in August 2017. This supposedly was an aftereffect of demonetisation where the Prime Minister banned Rs 500 and Rs 1,000 currency notes on November 2016 at 8 p.m. Post demonetisation, investors with swollen bank accounts moved a lot of money into mutual funds, especially equity and balanced funds. Amfi also noticed that the quantum of flows in short term funds and credit funds had increased after demonetisation dramatically. See chart below to trace the spikes.