4 Equity mutual funds with returns of over 60% in 1 year
UTI Flexi Cap Fund
This fund generated a return of 62.10 percent in the past year. UTI Flexi Cap Fund has been rated 5 stars by Value Research. The 3-year returns are more tempered at 14.92%, while the 5-year returns are 16% on an annualized basis. The fund is managed by UTI and has assets under management of over 16,000 crore.
The fund’s portfolio includes stocks such as HDFC Bank, Bajaj Finance, L&T Infotech, Infosys and HDFC. One can also invest in the fund via the SIP channel, where the minimum sum required is Rs 1,000 per month. We want to let readers know that markets have accelerated sharply in the past year after the collapse due to the nationwide lockdown. Therefore, seeing 1 year returns and then investing may not be the ideal way to invest.
Mirae Emerging Bluechip Fund
This fund is rated 5 stars by Crisil and Value Research. The 1-year returns of the fund were excellent at 63.24%, while the 3-year returns were 16.15% and the 5-year returns were 20.77% on an annualized basis. The fund’s assets under management exceed Rs 16,000 crore.
Almost all of the money has been invested and the fund has nothing in cash and cash equivalents. The Mirae Emerging Bluechip Fund portfolio includes names such as HDFC Bank, ICICI Bank, Infosys and Axis Bank. For those looking to invest, it is best to avoid investing on a flat-rate basis, given how the markets have recovered over the past year.
Growth Tata Midcap
This is another fund that has done exceptionally well over the past year. One-year returns were 61.74% on an annualized basis. The 3-year returns are more tempered at 11%. It’s important to stress the fact that this is a mid-sized fund, which means that returns tend to be more volatile. In a sense, if the markets fell, the returns on these funds would fall faster, while if the markets were to gain, the returns could be much better. In this type of fund, the best way would be to invest through systematic investment road plans. This fund invests in stocks such as Voltas, Cholamandalam Investment, Tat Power, Navin Flourine, etc. Again, being a midcap fund, you have to think twice before investing large lump sums.
SBI Small Cap Fund
SBI Small Cap Fund has given astonishing returns of almost 81 percent in 1 year. This is a phenomenal set of returns by any standards. The fund invests in companies with a small market capitalization, which means that returns can be volatile. If there is serious selling pressure on stocks, the fund’s returns could be struggling. The fund has a portfolio which includes stocks like JK Cement, Elgi Equipment, Bluestar, etc. One can also invest via the SIP route, which would be the ideal way to invest in small cap stocks.
About the Author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline dailies including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines such as Dalal Street Investment Journal and Oman Economic Review. His strong point remains stocks, mutual funds and tax planning.
Please read our disclaimer on the goodreturns.in website before investing. The article mentioned above is for informational purposes only. This is not a solicitation to buy or sell equity mutual funds. Greynium Information Technologies and the author are not responsible for any losses incurred as a result of actions taken on reading the article.