This article is in continuation of our article titled “Mutual funds performance in the last 20 years”
There are around 12,000+ mutual funds across 45 fund houses. In the last 5 years, the industry grew about 3 folds from ₹8.25 trillion as on 31st March 2014 to ₹23.80 trillion as on 31st March 2019. The number of folios is around 69.3 million as on 31st March 2019. Also, the number of folios has been increasing month on month for 58 consecutive months now. With increased investment awareness the MF industry has been growing rapidly. Investors have been looking out for top funds to invest in. Also, each advisor has a set of their own top funds. But investors have different investment horizons. Therefore it gets difficult for them to pick the top funds based on their horizon. So we at Upwardly have been shortlisting the top funds for different horizons (10,20,25 years). Upwardly brings to you the list of best performing mutual funds in India in the last 5 years.
|Name||Inception Date||AUM (Rs Cr)||Returns for last 5 years (%)*||Worth of Rs 5,000 SIP since the last 5 years (Rs)**|
|Mirae Asset Emerging Bluechip Fund||July 9, 2010||7,271||22.35%||4.79L||Invest|
|Canara Robeco Emerging Equities Fund||March 11, 2005||4,675||21.60%||4.43L||Invest|
|SBI Small Cap Fund||September 9, 2009||1,992||24.97%||4.65L||Invest|
|Reliance Small Cap Fund||September 16, 2010||8,050||21.08%||4.35L||Invest|
|Kotak Emerging Equity Scheme||March 30, 2007||4,028||18.98%||4.17L||Invest|
*These are annualized returns
This fund lives up to the ‘blue-chip’ tag in its name. The fund invests 35% of its assets in large-caps and the rest 65% in mid-caps. The fund picks up companies for its portfolio with operating profits of Rs 100 Cr. It avoids investing in micro-caps. The fund has outperformed its category by 7-10 percentage points and the benchmark by 3-9 percentage points in the 1, 3 and 5-year returns. The fund gave 21.12% (annualized) return since its inception in 2010. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.79 lakhs now.
Consistency in performance is the primary quality of the fund. It uses growth-at-a-reasonable approach to pick its companies. It looks for opportunities across various sectors. The fund has 40% invested in large and mid-cap stocks. The fund has outperformed its category by 4-9 percentage points and the benchmark by 3-10 percentage points in the 3 and 5-year returns. It gave 17.24% (annualized) return since its inception in 2005. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.43 lakhs now.
SBI Small Cap Fund is one of the best small-cap mutual funds. This high-risk fund is an emerging star in the category. It looks for five attributes in the stocks it buys. They are, competitive advantage, return on capital, growth, management, and valuation. The scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of small-cap companies.
The fund has reopened subscriptions through SIP more from May 16th, 2018. The fund hasn’t taken any fresh investments since October 2015. Over three years and five years, the fund has been ahead of its benchmark by 5-10 percentage points. Compared to the category, it has managed 1-2 percentage point outperformance. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.65 lakhs now.
This is one of the rare funds in the equity space which has beaten the benchmark as well as the category across all the time frames: one year, three years, five years or even seven years. It is one of the best small-cap funds. Managing solid performance, even in bear phases, without leaning on large-caps is credible. Over three and five years, the fund has been ahead of its benchmark by 5 to 9 percentage points. Compared to the category, it has managed 3 to 5 percentage point outperformance. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.35 lakhs now.
The fund invests in companies that are priced at a discount to the intrinsic value. To select companies, the fund goes through a process. It selects only those companies that have a good financial strength and relatively less prone to recession. The find invests 65-70% in mid-caps, 25-30% in small-caps, 5-10% in large-caps. On a three and five-year basis, it has outperformed its benchmark by 3 to 6 percentage points and category by 3 to 5 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.17 lakhs now.
The above funds are the best performers in their respective categories. The suggestion is not just based on past returns but after considering other indicators. Therefore, it is important to note that the past returns may repeat in the future. Make an informed decision to achieve your long term goals.