Mutual Funds: In the backdrop of a recent bullish market, several mutual funds have showcased exceptional performance over the past 1 to 3 years. While short-term gains may not offer a comprehensive analysis, reviewing these funds becomes crucial for potential medium to long-term investors. This article presents insights into five mutual fund schemes that delivered remarkable returns ranging between 160% and 215% from January 21, 2021, to January 20, 2024.
Beta and Alpha in Mutual Funds
Beta: A measure of a fund’s sensitivity to market movements. A beta of less than 1 indicates lower volatility compared to the benchmark, while a beta exceeding 1 suggests higher volatility. Lower beta funds offer stability and are preferable for risk-averse investors.
Alpha: This metric gauges the additional returns generated by a fund compared to the benchmark. High alpha funds signify potential for greater returns. The interplay of alpha and beta aids investors in balancing risk and return considerations effectively.
Exploring the Top 5 Mutual Fund Schemes
1. Quant Small Cap Fund – 3-Year Return: 215%
Investment Objective: Generating capital appreciation and long-term growth opportunities by investing in a portfolio of Small Cap companies.
Absolute Returns:
- 1 Year Return: 54%
- 2 Year Return: 62%
- 3 Year Return: 215% (1 Lac would have turned to 3.15 Lacs)
- 5 Year Returns: 354%
- 10 Year Returns: 551%
Annualised Returns:
- 1 Year Return: 54%
- 2 Year Return: 27%
- 3 Year Return: 46%
- 5 Year Returns: 35%
- 10 Year Returns: 20%
2. Nippon India Small Cap Fund – 3-Year Return: 180%
Investment Objective: Seeking long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies.
Absolute Returns:
- 1 Year Return: 52%
- 2 Year Return: 58%
- 3 Year Return: 180% (1 Lac would have turned to 2.8 Lacs)
- 5 Year Returns: 275%
- 10 Year Returns: 1190%
Annualised Returns:
- 1 Year Return: 52%
- 2 Year Return:25%
- 3 Year Return: 41%
- 5 Year Returns: 30%
- 10 Year Returns: 29%
3. ICICI Prudential BHARAT 22 FOF – 3-Year Return: 175%
Investment Objective: Generating returns by investing in units of BHARAT 22 ETF, comprising 18 PSU and 3 private sector firms.
Absolute Returns:
- 1 Year Return: 60%
- 2 Year Return: 97%
- 3 Year Return: 175% (1 Lac would have turned to 2.75 Lacs)
- 5 Year Returns: 166%
- 10 Year Returns: 176%
Annualised Returns:
- 1 Year Return: 60%
- 2 Year Return: 40%
- 3 Year Return: 40%
- 5 Year Returns: 21%
4. HSBC Small Cap Fund – 3-Year Return: 167%
Investment Objective: Generating long-term capital growth from an actively managed portfolio of equity and equity-related securities of predominantly small-cap companies.
Absolute Returns:
- 1 Year Return: 51%
- 2 Year Return: 46%
- 3 Year Return: 167% (1 Lac would have turned to 2.67 Lacs)
- 5 Year Returns: 205%
- 10 Year Returns: 670%
Annualised Returns:
- 1 Year Return: 51%
- 2 Year Return: 21%
- 3 Year Return: 38%
- 5 Year Returns: 25%
- Since inception Return: 23%
5. Tata Small Cap Fund – 3-Year Return: 160%
Investment Objective: Generating long-term capital appreciation by predominantly investing in equity and equity-related instruments of small-cap companies.
Absolute Returns:
- 1 Year Return: 37%
- 2 Year Return: 48%
- 3 Year Return: 160%
- 5 Year Returns: 245%
- Since Inception Returns: 255%
Annualised Returns:
- 1 Year Return: 36.9%
- 2 Year Return: 21.7%
- 3 Year Return: 37.5%
- 5 Year Returns: 28.1%
- 10 Year Returns: 27.7%
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