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Mint
2 days ago
- Business
- Mint
Best mutual funds: These small-cap funds delivered over 30% annualised returns in past 5 years. Check list
Best mutual funds: When investing in a mutual fund scheme, investors often examine the scheme's returns and compare them with those of other schemes in the same category. Although past returns may not continue in the future, investors often base their investment decisions on how a scheme has performed in the past. Here, we list the past performance of the 10 best-performing small-cap mutual funds, which have delivered an annualised return of 30 per cent. To put this perspective, an annual return of 30 per cent means that if someone invests ₹ 1 lakh, this growth rate would allow the investment to become ₹ 3,71,293 after five years. Small-cap mutual funds refer to schemes that have invested 65 per cent of their assets in small-cap stocks and the remaining assets in mid-cap or large-cap stocks. As of 30 June 2025, there were 30 small-cap schemes with a total assets under management (AUM) of ₹ 3,54,550 crore. Small Cap fund 5-year-return (%) Bandhan Small Cap Fund 32.98 BOI Small Cap Fund 30.69 Edelweiss Small Cap Fund 30.54 Franklin India Small Cap Fund 31.61 HDFC Small Cap Fund 31.90 HSBC Small Cap Fund 32.14 ICICI P Small Cap Fund 30.28 Invesco India Small Cap Fund 31.87 Nippon India Small Cap Fund 34.71 Tata Small Cap Fund 31.59 As the table above shows, Bandhan Small Cap Fund delivered around 33 per cent annualised return, and HSBC Small Cap Fund gave 32.14 per cent annualised return. Other schemes that gave high returns (above 30 per cent per annum) include the Bank of India Small Cap Fund, Edelweiss SCF, Tata Small Cap Fund and Nippon India Small Cap Fund. Meanwhile, retail investors must be aware that past returns do not guarantee future returns. Just because some scheme has delivered good returns in the past does not mean it will continue to perform well in the future as well. Conversely, bad performance in the past does not imply similar performance in the near future. Additionally, investors can also examine the stress test of small-cap mutual fund schemes before investing in them. The stress test shows the number of days it would take to liquidate 25 per cent and 50 per cent of the portfolio in case of a stress event. Per Sebi guidelines, mutual funds are supposed to examine the liquidity of portfolios under stress scenarios for their mid-cap and small-cap funds. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision. For all personal finance updates, visit here
Economic Times
3 days ago
- Business
- Economic Times
These 11 mutual funds gave over 30% CAGR in 3 years. Do you hold any?
An analysis of approximately 230 equity funds reveals that around 11 delivered over 30% CAGR in the last three years. An analysis reveals that approximately eleven equity mutual funds gave returns of over 30% in the last three years. Quant Small Cap Fund and Nippon India Small Cap Fund were the top performers. Motilal Oswal Midcap Fund and Quant Mid Cap Fund also delivered strong returns. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads What is rolling return in mutual funds? Around 11 equity mutual funds delivered over 30% CAGR in the past three years based on daily rolling returns , according to an analysis by ETMutualFunds. The study considered approximately 230 equity funds over the same period using the stated top two performers belonged to the small-cap category. Quant Small Cap Fund led the pack, delivering a stellar 40.36% CAGR over the three years, followed by Nippon India Small Cap Fund, which posted a CAGR of 34.52%, both based on daily rolling returns Also Read | Multi asset mutual funds beat other hybrid funds in 1 & 3 years. Should they be in your portfolio? The next two funds on the list were mid-cap schemes. Motilal Oswal Midcap Fund and Quant Mid Cap Fund delivered a CAGR of 32.59% and 31.52%, respectively, over the three-year period based on daily rolling were followed by three small-cap funds. HSBC Small Cap Fund posted a CAGR of 31.17%, while Tata Small Cap Fund and Bank of India Small Cap Fund delivered 30.80% and 30.59%, respectively, based on the same metric. SBI Contra Fund , the largest and oldest contra fund in India, reported a CAGR of 30.36% over the same period, followed by three more small-cap schemes: Canara Robeco Small Cap Fund (30.20%), HDFC Small Cap Fund (30.05%), and Franklin India Small Cap Fund (30.03%).All other funds in the study posted a CAGR ranging between 11.64% and 29.93% over the three years based on daily rolling them, Quant Flexi Cap Fund delivered a strong 29.93% CAGR, while Edelweiss Mid Cap Fund and SBI Midcap Fund posted 27.26% and 26.19%, ELSS Tax Saver Fund, the oldest ELSS scheme in the market, generated a CAGR of 24.78%, while Parag Parikh Flexi Cap Fund, the largest active and flexi cap fund, delivered 21.96% CAGR over the same Birla SL ELSS Tax Saver Fund was the last fund on the list to deliver a double-digit CAGR, offering 11.64% over the past three years based on daily rolling Focused Fund and Samco Flexi Cap Fund delivered single-digit returns, with a CAGR of 9.48% and 2.65%, respectively, during the same analysis considered all equity mutual funds in their regular and growth options, and calculated their daily rolling returns over the past three This is not a recommendation. The exercise was purely data-driven, aiming to identify equity mutual funds that delivered over 30% CAGR over the last three years based on daily rolling are advised not to make investment or redemption decisions solely based on this analysis. Investment choices should always align with individual risk appetite, investment horizon, and financial return is the average annualized return of a fund calculated over a specified time frame, rolled forward on a daily, monthly, or yearly basis. Unlike trailing returns, which are point-to-point, rolling returns provide a more consistent and comprehensive view of a fund's performance across different market metric helps assess return consistency, offering insights into both bull and bear phases, and is considered one of the most reliable ways to evaluate a mutual fund's long-term returns carry a recency bias and reflect performance only for a specific time frame, making them sensitive to the start and end dates. In contrast, rolling returns measure a fund's absolute and relative performance across multiple periods, offering a more consistent and unbiased view.
Time of India
15-05-2025
- Business
- Time of India
Best aggressive hybrid mutual funds to invest in May 2025
You might have heard from your favorite mutual fund manager or experts that hybrid funds are likely to show their resilience in the coming year. Hybrid mutual funds or schemes that invest mostly in equity and debt fare better in an uncertain or volatile environment. Mutual fund experts believe that the markets are likely to be cautious and investors should also proceed with caution. Aggressive hybrid funds are one of the popular hybrid mutual fund categories. These schemes are mandated to invest in a mix of equity (or stocks) and debt. As per Sebi norms, these schemes must invest 65-80% in stocks, and 20-35% in debt. This mixed portfolio helps to deal with the market volatility better. When the equity market is in turmoil, the debt part of the portfolio softens the blow. This helps new investors to continue with their investments without worrying too much about volatility. Also Read | Nippon India Small Cap Fund exits IndusInd Bank, Adani Wilmar, 3 other stocks in April Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » If you are bothered about the uncertainties and volatility in the market, you can consider investing in aggressive hybrid mutual funds . Mutual fund advisors typically recommend aggressive hybrid fund schemes to 'conservative' equity investors to create wealth to achieve their long-term financial goals. A 'conservative equity investor' is not the same as a conservative investor. A conservative investor doesn't want to take risks at all. These investors typically park their money in bank deposits, bonds, etc which give them predictable returns. A conservative equity investor is ready to take risk, but he or she doesn't want too much risk and volatility. So, a conservative equity investor typically wants to grow wealth without exposing her investments to too much volatility. Live Events Mixed portfolio Another advantage of investing in these schemes is their mixed portfolio of equity and debt. In order to maintain the asset allocation, the fund manager would constantly book profits, and this will boost the returns. Suppose the equity allocation has gone beyond the original plan in a bull market. The fund manager would sell the stocks to maintain the allocation. This profit-booking, over a long period of time, would enhance the returns. Sure, you can do such an allocation and create your own mutual fund portfolio. However, when you book profits, you may have to pay taxes on gains of over Rs 1 lakh in a financial year. A mutual fund, on the other hand, is not liable to pay taxes. This again would help investors to enhance their returns. Now that you know about these schemes, here are the points you should remember before deciding to invest in aggressive hybrid funds. One, the mixed portfolio of these schemes helps you to limit volatility and create wealth over a long period. Two, regular profits booking would help these schemes to boost profits. Three, they offer a tax advantage. Lastly, don't rely on regular dividends from these schemes to draw up a regular income. Also Read | BSE and One 97 among stocks that mutual funds bought and sold in April However, you should always remember none of these factors make aggressive hybrid schemes risk free. Any scheme that invests a minimum 65% in stocks, can't be risk free. Stocks are risky. So, you should be prepared for some volatility in the short period. Here is an update: SBI Equity Hybrid Fund has been in the third quartile in the last four months. The scheme had been in the fourth quartile earlier. Mirae Asset Hybrid Equity Fund has been in the third quartile in the last month. The scheme had been in the fourth quartile before that. Canara Robeco Equity Hybrid Fund has been in the third quartile for the last 24 months. Note, these schemes have been part of our recommendation list in 2024, too. We have been closely watching these schemes. Please follow our monthly updates if you are investing in these schemes. Aggressive hybrid schemes to invest in May 2025: SBI Equity Hybrid Fund Canara Robeco Equity Hybrid Fund Mirae Asset Hybrid Equity Fund ICICI Prudential Equity and Debt Fund Quant Absolute Fund Methodology If you want to invest in these schemes, you may be interested to know how we chose these schemes. Take a look at our methodology: ETMutualFunds has employed the following parameters for shortlisting the hybrid mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of the randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. These types of time series are difficult to forecast. ii) When H is less than 0.5, the series is said to be mean reverting. iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore
