scorecardresearch2022 in Review: Large-cap, multi caps give higher returns vis-à-vis others in past 1 year

2022 in Review: Large-cap, multi caps give higher returns vis-à-vis others in past 1 year

Updated: 27 Dec 2022, 08:14 AM IST
TL;DR.
In the past one-year, large cap mutual funds gave a return of 5.46 percent while multi caps 6.41 percent, whereas returns given by small caps and mid-cap funds, as a category, hovered around 3.55 percent and 4.49 percent respectively.
In the past one-year, large cap mutual funds gave a return of 5.46 percent while multi caps 6.41 percent, whereas returns given by small caps and mid-cap funds, as a category, hovered around 3.55 percent and 4.49 percent respectively.

In the past one-year, large cap mutual funds gave a return of 5.46 percent while multi caps 6.41 percent, whereas returns given by small caps and mid-cap funds, as a category, hovered around 3.55 percent and 4.49 percent respectively.

As the year comes to a close, most of retail investors must be busy evaluating the bets they took in their mutual fund investment. Some reposed faith in large cap funds for the stability they offered whereas some took risky bets by investing in small and mid-cap funds. Those who wanted to play safe perhaps preferred multi cap or value funds to maximise their returns without being too reckless.

Let us now see which fund category performed better and which did not. The large cap mutual fund schemes and multi cap funds gave relatively higher returns to investors in comparison to small cap and mid-cap mutual funds.

As one can see from the table below, the large cap mutual funds and multi cap funds have given a higher returns i.e., 5.39 percent and 5.72 percent, respectively. On the other hand, small cap and mid cap funds have 1.85 percent and 4.5 percent to their investors.

Mutual Fund category            1-year returns (%)
Large cap                  5.46
Multi Cap                 6.41
Value                      6.74
Small Cap                3.55
Mid Cap                     4.49
                                                                     Sectors
Financial Services     22.74
FMCG                       21.15

(Source: Morning Star data as on Dec 20, 2022)

 

Here we examine the top performing mutual funds under each of the fund categories:

Large cap funds: The top three mutual funds in the large cap category are Nippon India Large Cap Fund - Reg - Growth, HDFC Top 100 Fund - Growth and Taurus large-cap Equity Fund - Reg - Growth that delivered returns of 17.93 percent, 16.92 percent and 13.37 percent, respectively, according to the ICRA Analytics data.

Multi Cap funds: The top three funds in this category include Nippon India Multi Cap fund (Reg) growth, Quant Active Fund Growth and Kotak Multi Cap fund Reg Growth that gave return of 21.37 percent 19.04 percent and 17.36 percent, respectively, according to ICRA analytics data.

Value funds: The top three mutual funds in the value fund category are Templeton India Value Fund - Growth, Quant Value Fund - Reg - Growth and ICICI Prudential Value Discovery Fund - Growth that delivered returns of 22.16 percent, 21.33 percent and 20.49 percent, respectively.

Financial Services funds: The top three mutual funds in the financial services category are SBI PSU Fund - Growth, Nippon India Banking & Financial Services Fund - Reg - Growth and LIC MF Banking & Financial Services Fund - Reg - Growth that delivered returns of 35.63 percent, 25.08 percent and 24.92 percent, respectively.

FMCG funds: The top performing mutual funds in the FMCG category is ICICI Prudential FMCG - Growth that gave a return of 24.15 percent in the past one year, according to the ICRA Analytics data.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

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Investors often prefer to invest in mutual funds that consistently beat the benchmark indices.
First Published: 27 Dec 2022, 08:14 AM IST