scorecardresearchMutual Fund Returns: This hybrid fund gave an annualised return of 20 percent in five years

Mutual Fund Returns: This hybrid fund gave an annualised return of 20 percent in five years

Updated: 21 Sep 2022, 01:22 PM IST
TL;DR.
Quant Absolute Fund delivered a return of 20.44 percent for its direct scheme in the past five years. The benchmark index returns during the same period were 11.35 percent. Read further to know more about the mutual fund scheme
Aggressive hybrid funds are the ones which invest between 65 to 80 percent of their investment into equity and equity related instruments and the remaining 20 to 35 percent in debt instruments 

Aggressive hybrid funds are the ones which invest between 65 to 80 percent of their investment into equity and equity related instruments and the remaining 20 to 35 percent in debt instruments 

Chasing high returns is usual among mutual fund investors. Those who look forward to exceptionally high returns scout for the fund schemes that have delivered a high return on their investment.

Here, we shed light on one of the top performing hybrid mutual funds that has delivered over 20 percent annualised return in the past half a decade.

We are referring to Quant Absolute Fund which delivered a return of 20.44 percent (direct) in the past five years. The benchmark index (Crisil Hybrid 35+65 aggressive index) returns during the same period stood at 11.35 percent.

As we can see the table below, mutual fund scheme’s one year return was 18.90 percent, while the benchmark return was considerably low at 2.99 percent. At the same time, the three-year-returns of mutual fund scheme were 35.56 percent, against the benchmark return of 16.74 percent. The five-year-return of mutual fund was 20.44 percent against 11.35 percent return given by benchmark index.

The overall returns since the fund’s inception were 18.48 percent while the benchmark index gave a return of 12.35 percent.

Year                   Return (%)Benchmark (%)
1                               18.902.99
3                                    35.5616.74
5                                    20.4411.35
SI                                 18.4812.35

(Direct returns as on Sept 19; AMFI data)

 

Scheme's further details:

This fund was launched on April 17, 2001. The minimum investment in this scheme is 5,000 and subsequent investment is 1,000.

Total size of is 583.36 crore. The fund managers of the scheme are Sanjeev Sharma, Ankit Pande and Vasav Sahgal.

The top portfolio stocks were Ambuja Cements, NTPC, ITC, Adani Ports, SBI, L&T, Adani Enterprises, Tata Consumer, Bharti Airtel and Siemens. The mutual fund has allocated its funds across sectors including Cement (9%), banks (7.75%), construction (7.04%), power (6.95%) and telecom (6.32%).

This mutual fund scheme falls under the category of aggressive hybrid mutual fund. Here we now explain what exactly are aggressive hybrid mutual funds.

What are aggressive hybrid mutual funds?

Aggressive hybrid funds are mutual funds which invest anywhere between 65 to 80 percent of their investment into equity and equity related instruments, and the remaining 20 to 35 percent in debt instruments.

In fact, SEBI has classified hybrid funds into seven sub-categories. These are conservative, balanced, aggressive, dynamic asset allocation, multi asset allocation, arbitrage and equity savings.

According to the latest AMFI data for the month of August, aggressive and balanced hybrid funds together have a total of 32 schemes.

These schemes witnessed an addition of 744.9 crore in the month of August, against 686 crore and 1,130 crore in July and June, respectively. Net assets under management (AUM) were 1.55 lakh crore as on August 31.

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First Published: 21 Sep 2022, 01:22 PM IST