Fund Consistency: 29 equity mutual funds offer more than 25% CAGR over 3 and 5 years
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Around 29 equity mutual funds have delivered over 25% CAGR in both the last three and five years, according to an analysis by ETMutualFunds. A total of 199 funds in the market have completed five years of existence.Two funds from Bandhan Mutual Fund — Bandhan Core Equity Fund and Bandhan Small Cap Fund — delivered over 25% CAGR during both periods. Edelweiss Mid Cap Fund , the only offering from its fund house, posted a CAGR of 28.57% and 34.13% over the last three and five years, respectively.Mid-cap and small-cap funds from Franklin Templeton Mutual Fund — Franklin India Prima Fund and Franklin India Smaller Companies Fund — delivered over 25% CAGR in both the three- and five-year periods.Four funds from HDFC Mutual Fund — HDFC Flexi Cap Fund, HDFC Focused 30 Fund, HDFC Mid-Cap Opportunities Fund , and HDFC Small Cap Fund — also featured in the list of funds that delivered over 25% CAGR during both time frames.Three funds from Invesco Mutual Fund delivered over 25% CAGR in both the last three and five years. Mahindra Manulife Mid Cap Fund returned 26.68% and 31.07% CAGR over the same periods.Three schemes from Motilal Oswal Mutual Fund — Motilal Oswal ELSS Tax Saver Fund, Motilal Oswal Large & Midcap Fund, and Motilal Oswal Midcap Fund — also delivered over 25% CAGR during the mentioned time frames.Four funds from Nippon India Mutual Fund qualified, including the Nippon India Small Cap Fund, which is the largest small-cap fund by assets under management. Quant Small Cap Fund , the only fund from Quant Mutual Fund, delivered 27.95% and 48.17% CAGR over the last three and five years, respectively.SBI Long Term Equity Fund, the oldest ELSS fund, posted 27.84% and 29.89% CAGR over the respective time horizons.Sundaram Mid Cap Fund, the sole offering from its fund house, returned 27.83% and 30.93% CAGR in the last three and five years, respectively.Among the 29 qualifying funds, Motilal Oswal Midcap Fund posted the highest return of 32.65% over the last three years, while Bank of India Small Cap Fund recorded the lowest at around 25.31% during the same period.In the last five years, the Quant Small Cap Fund delivered the highest return of 48.17%, while the Invesco India Large & Mid Cap Fund posted the lowest return of 26.56% during the same period.This analysis considered all equity mutual funds, specifically the regular and growth options. CAGR was calculated for both the last three- and five-year periods.Note: This exercise is not an investment recommendation. It was conducted to identify equity mutual funds that delivered over 25% CAGR in both the last three and five years. Investors should not base investment or redemption decisions solely on past performance.One should always consider their risk appetite, investment horizon, and financial goals before making any investment decisions.
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Time of India
3 days ago
- Time of India
MF Tracker: Will this Rs 30,000 crore smallcap fund continue to maintain its long-term performance?
SBI Small Cap Fund emerged as the best-performing equity mutual fund based on daily rolling returns, delivering a CAGR of 21.87% over the past seven years. This performance stands out among approximately 171 equity mutual funds during the same timeframe. Launched in September 2009, the fund is given a three-star rating by Value Research and is unrated by Morningstar. Based on daily rolling returns, the fund has offered 20.68% CAGR in the last five years and in the last three years, it gave a CAGR of 26.13% based on daily rolling returns. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 호계동: 손끝에서 빛나는 반지 [지금 확인] 월드비전 더 알아보기 Undo Also Read | Nippon India Taiwan Equity Fund tops return chart with 22% in May. Can the momentum sustain? Based on the trailing returns, the fund has underperformed or performed at par with the category average. In the three months, the fund gave a 15.23% return against 18.64% as the category average. In the last six months, the fund lost 6.95% against a loss of 6.49% by the smallcap category. In the last one year, three years, and five years, the fund has underperformed against its category average in the similar period. Live Events Over the past year, the fund delivered a return of 7.43%, lagging the category average of 14.96%. Over three years, it posted an 18.87% CAGR versus the category's 23.38%. Across five years, the fund returned a CAGR of 29.31%, falling short of the 34.23% category average. Note, the returns of benchmark BSE 250 Small Cap - TRI were not available in the ACE MF , so ETMutualFunds could not compare the performance of the fund with the benchmark. Experts take on performance According to an expert, since its inception, SBI Small Cap Fund has consistently outperformed its benchmark, delivering a 21.87% CAGR over seven years based on daily rolling returns, an impressive feat in the small-cap space. 'What sets the fund apart is its consistency across market cycles, including periods of high volatility like the 2020 pandemic crash and the 2018 mid-cap/small-cap correction. Even during these downturns, the fund demonstrated lower drawdowns compared to peers, suggesting superior risk-adjusted returns,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets, shared with ETMutualFunds. Jain adds that the fund follows a bottom-up stock-picking approach, with a focus on companies having scalable business models, clean governance, and healthy balance sheets. Over the last 10 calendar years (2015–2024), the smallcap fund posted negative returns only once—in 2018—when it declined 19.62%. Its best performance came in 2017, delivering a stellar return of 78.66%, the highest in the decade. 'The fund has consistently showcased strong downside protection compared to both its benchmark and peers. During the 2018 small-cap correction, while the Nifty Small Cap 100 index dropped by 44.4%, SBI Small Cap Fund limited its decline to just 28.1%, outperforming the category average fall of 29.4%,' Jain further commented. 'Again, in the 2020 COVID-19 market crash, the fund's downside capture ratio stood at an impressive 43.6, meaning it lost less than half as much as the broader market. In recent corrections, the funds have been almost at par with its peer and benchmarks. These figures highlight the fund's resilience and effective risk management, even during some of the most volatile market phases,' she added. Also Read | 9 equity mutual funds offer over 20% CAGR in seven years. Are there any included in your portfolio? If an investor invested Rs 10,000 at the time of the inception of the fund, the current value of the investment would have been Rs 1.23 crore with an XIRR of 21.37%. In the last five years, the value of the same monthly investment would have been Rs 9.53 lakh with an XIRR of 19.14%. In the last three years, the value of the same SIP investment would have been Rs 4.44 lakh now with an XIRR of 14.93% If an investor made a lumpsum investment of Rs 1 lakh at the time of the inception of the fund, the current value would have been Rs 16.91 lakh now with a CAGR of 19.67%. In the last five years, the value of the same lumpsum investment would have been Rs 3.58 lakh with a CAGR of 29.08%. In the last three years, the value of this investment would have been Rs 1.68 lakh now, with a CAGR of 18.90%. The smallcap fund had 79.73% in equity, 0.17% in debt, and 20.10% in others as on April 30, 2025. In comparison to the small cap category, the scheme is overweight on others, whereas underweight on equity and debt. The category on average had 91.20% in equity, 0.29% in debt, and 8.51% in others. Being a smallcap fund, the scheme invests 76.96% in small caps, 1.77% in mid caps, and 21.27% in others. Post the allocation of the small cap fund, Jain said that SBI Small Cap Fund has demonstrated effective downside risk management by maintaining a well-diversified portfolio, avoiding excessive concentration, and adopting a bottom-up stock selection approach and the fund manager tends to focus on companies with strong balance sheets, quality management, and scalable business models traits that help weather economic slowdowns. The PE and PBV ratios of the midcap fund were recorded at 40.75 times and 6.26 times, respectively, whereas the dividend yield ratio was recorded at 0.59 times as of April 2025. The fund had the highest allocation in the finance sector of around 7.94% compared to 7.53% in the category. The scheme is overweight on capital goods, chemicals, FMCG, hospitality, Agri, Infrastructure, and consumer durables. 'Many of the portfolio's companies are under-researched or emerging players, which offers the potential for high alpha generation. The fund typically holds around 45–55 stocks, ensuring diversification without dilution of returns,' Jain told ETMutualFunds. Also Read | Planning to save Rs 10,000 monthly? Here is how much you will generate in 25 years The top 10 stocks of the fund constitute 24.66% of the total portfolio as of April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.65 and an alpha of 0.01. The sortino ratio of the scheme was recorded at 0.54. The return due to net selectivity was recorded at (0.06), and the return due to improper diversification was recorded at 0.07 in the last three years. The expert adds that the fund's Sharpe Ratio has consistently been higher than the category average, reinforcing its strength in managing both growth and downside risks. The investment style of the fund is to invest in growth-oriented stocks in smallcap market capitalisation Apart from the SBI Small Cap Fund, there are 22 other funds in the category which have a track record of three years in the market. Among the total 23 funds in the category, Bandhan Small Cap Fund offered the highest return of 32.09% in the last three years. ITI Small Cap Fund offered the second-highest return of 29.40% in the same period. PGIM India Small Cap Fund gave the lowest return in the last three years of around 15.45%. Post the performance of the small cap fund in the last three years, Jain said that the Nifty SmallCap 250 index is running at a PE ratio of about 32.4 which is higher than the 5 years average PE range, indicating that valuations are stretched which suggests that investors should be cautious in the short term, as high valuations may limit near-term upside and increase vulnerability during market corrections. For conservative investors, Jain advises that they may choose to stay away from small-cap funds given their high volatility and current elevated valuations, and instead, they can focus on large-cap funds, which are available at attractive valuations and offer more stability in uncertain markets. On the other hand, for aggressive investors, she adds that those with a high-risk appetite and long-term horizon can consider adding small-cap funds with a proven track record to their portfolios. 'A staggered investment approach through SIPs is advisable to manage market fluctuations and reduce timing risks. While near-term caution is warranted, small-cap funds continue to offer strong long-term growth potential in India's expanding economy,' she added. One should always choose a scheme based on risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
4 days ago
- Time of India
Cash isn't king! Radhika Gupta explains why sitting idle doesn't work in mutual funds
Every time the market dips, investors applaud those sitting on piles of cash. But Edelweiss Mutual Fund follows a different playbook — keeping cash levels around 2–3%, and never breaching even 10%. Radhika Gupta , MD & CEO of Edelweiss AMC , believes equity fund managers are hired to pick stocks, not to time markets or predict geopolitics. Taking big cash calls, she warns, can be risky. 'If something looks expensive, shift within the universe,' she says. Edited excerpts on a chat with Radhika Gupta on SIPs, cash calls and asset allocation. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. We saw how the market started falling from September and then recovered in the last 3 months. All this while SIP investors have stayed put and SIP inflows didn't fell that much. Radhika Gupta: It is a structural trend. People are growing up. You do not lose money. I had said this four months ago in the peak of all this pandemonium that the minimum return in SIP on Edelweiss Midcap Fund over 10 years is 9%. It is not a big deal. You just have to hang out. And SIPs are something people are beginning to develop structural faith in, because it is not a returns-focused product only. It is a savings and investment solution. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo One-two months of market correction does not make people stop their SIPs. It is a way for me to save as a salaried person and consistently invest in the market. And by the way, if the market falls, I get more units. Maybe our industry has done a good job of education. Some of us were screaming all day on social media and your platforms. Now it shows that people are actually listening to us. Imagine if people had stopped all those SIPs four months ago. The SIP has survived. The frenzy in smallcaps is also coming back at the same time now. Radhika Gupta: I do not know what you mean by frenzy. But smallcap returns have certainly come back. I do not think smallcaps are super cheap anymore. We started the year on a very turbulent note, with so much global uncertainty and the pressure of domestic earnings. And then we also had a big geopolitical event. Now, tariff and geopolitical uncertainty has taken a pause. The market has digested that in some sense. What needs to come back now is earnings growth, which is what we will look forward to in the second half of the year. Live Events A lot of investors who were sitting on cash in between have now been suffering from FOMO . How do you deal with cash allocation? Radhika Gupta: We have had an institutional policy to not take cash calls in equity funds for the last 7-8 years. It gets very criticised in months where markets fall because people think, oh, cash wala mahan hai . But it is very, very, very hard to take cash calls because our fund managers, or at least the people we hire, are stock selection guys. They are sector selection guys. They do not have the ability to predict geopolitics. Most people do not have the ability to predict what world leaders are doing with tariffs overnight. And so, taking cash calls can be very dangerous. When do you cut and when do you re-enter, especially and so, we leave that to science. We think that we are okay if someone gives us less money because they want to take an asset allocation. We have a cash component of 2-3% but it will never touch 10% even. Also read | Staying invested and patient pays off for 'Dumber' investors against timing market: Radhika Gupta That's right but some people shifted to cash because they found valuations to be very expensive in the peak of the bull market last year. So how do you deal with the valuation problem? Radhika Gupta: Then let the investor give you less money. When we manage our midcap fund, we are managing a relative return fund. You are trying to beat the benchmark. When an investor gives you money, she has told you that I want midcap exposure. If she does not want midcap exposure, she will not give you money and she should not give you money. So, my job is to beat the midcap index. If I find valuations a challenge in defence, I should move to IT or wherever I find valuation attractive. So, within the universe, I move to baskets of less overpriced valuation. But I have got money to deploy in midcaps and not got money to sit on cash. That is the way we think of it. So, for someone who has a moderate risk profile, what should be the ideal asset allocation at this point of time? Radhika Gupta: It should be a very middle path in nature - flexi or multicap in nature. So, we are of this belief that people tend to be very binary. They either like only mid and smallcaps or they shift to largecaps. When you are thinking decadally, you should think about wider representation of the economy and that becomes flexicap for conservative investors and multicap for aggressive investors. You actually have a mix of both paths. That's because a lot of critical themes, hotels, hospitals, capital markets, capital goods of the decade are mid and smallcap leaders. And India is a strange country in the sense that our midcap index is based on ranks. It is not based on market cap. And structurally, the largecap index is designed for a few sectors. Banks because they are large and have high free float. And then there are energy and some IT companies. You will get a very concentrated exposure if you are only into largecaps. And in terms of other asset classes? Radhika Gupta: People forgot fixed income over the last few years. So, you need to have fixed income exposure. Gold exposure is good. Also I believe people should have international fund exposure. Again, people tend to be a little return-chasing on that. But having the two major US and Chinese markets is usually a good idea. Can you summarise the kind of lessons that we have learnt as an investor in the last few months? Radhika Gupta: We have learnt the same lessons we learn every time, which is to focus on asset allocation, do not forget fixed income. Do things that are simple and dal chawal kind of investing. ( Read more about dal chawal investing here ) And in this social media age, do not FOMO your way to investing.
Time of India
7 days ago
- Time of India
Smallcap mutual funds offer 8% average return in May, all equity mutual fund categories end with gains
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Equity mutual fund categories ended May with gains as all categories delivered positive average returns with the small cap funds emerging as the top performers in the same period, an analysis by ETMutualFunds showed. There were 21 equity mutual fund categories in the said time cap funds delivered an average return of around 8.20% in the month of May. There were 30 funds in the small cap category, of which DSP Small Cap Fund offered the highest return of around 14.05% in May, followed by Quantum Small Cap Fund which gave 11.06% return in the same period. SBI Small Cap Fund delivered the lowest return of around 5.88% in the similar time sector based funds gave 7.54% average return in May and the category has only one fund as of now which is SBI Automotive Opportunities Fund. Infrastructure sector based funds offered an average return of around 7.18% in the mentioned time period. There were around 18 funds based on the infrastructure sector of which LIC MF Infra Fund offered the highest return of around 12.80% in May, followed by Kotak Infra & Eco Reform Fund gave 10.10% in the same funds gave an average return of 6.76% in the month of May. There are around 65 international funds as of now of which Nippon India Taiwan Equity Fund offered the highest return of around 21.69%, followed by Invesco India - Invesco Global Consumer Trends FoF which gave 15.70% return in the same period. Two funds in the category gave negative returns. Axis US Treasury Dynamic Bond ETF FoF and DSP US Treasury FoF lost 0.62% and 0.49% respectively in May. Mid cap funds offered an average return of 5.92% in the mentioned period. ICICI Prudential Midcap Fund offered the highest return of 8.34% in May whereas Quant Mid Cap Fund gave the lowest return of 2.81% in the same period. HDFC Mid-Cap Opportunities Fund, the largest mid cap fund based on the assets managed, gave 5.81% return in & mid cap funds gave an average return of 4.36% in May. Out of 31 funds in the large & mid cap category, Motilal Oswal Large & Midcap Fund gave the highest return of 12.57% in the month of May, followed by ITI Large & Mid Cap Fund which gave 7.19% return in the same period. Sundaram Large and Mid Cap Fund gave the lowest return of 2.15% in the same or tax-saving mutual funds and value funds gave an average return of 3.97% each in the month of May. Flexi cap funds gave an average return of 3.83% in the similar time period. Out of 39 funds in the flexi cap category, Samco Flexi Cap Fund gave the highest return of around 8.03% in May whereas HDFC Flexi Cap Fund gave the lowest return of 1.31% in the same period. Parag Parikh Flexi Cap Fund , the largest flexi cap fund based on the assets managed, gave 2.66% return in the similar funds delivered an average return of 3.13% in May. Large cap funds gave an average return of 2.22% in the said period. Quant Large Cap Fund gave the highest return of around 4% in the similar time period, followed by ITI Large Cap Fund which gave 3.99% return. Only the Samco Large Cap Fund delivered a negative return of around 0.20% in & Health Care sector based funds gave the lowest average return of around 1.15% in the month of considered all equity mutual fund categories including sectoral and thematic. We considered regular and growth options. We calculated the returns from May 1, 2025 to May 31, the above exercise is not a recommendation. The exercise was done just to identify how equity mutual fund categories performed in the month of May. One should not make investment or redemption decisions based on the above exercise as the performance in the equity funds should be based on the long-term performance and not based on one month should always make investment decisions based on their risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
