5 Mutual Fund Schemes with 55% to 67% returns in FY2024

While we could see stock markets reaching high, markets might be volatile till elections. There are hundreds of mutual funds that delivered high returns in the last 1 year. While some investors assess mutual fund performance based on XIRR returns, some investors simply go to the annualised returns of the mutual funds. Some check how well the mutual funds performed in the last financial year. This article provides 5 mutual fund schemes that generated 55% to 67% returns in the last financial year i.e. FY2023-24.

5 Mutual Fund Schemes with 55% to 67% returns in FY2024

While there are a few hundreds of mutual fund schemes, there are 20 equity funds that generated positive returns ever year. However, there are 5 mutual funds that generated highest returns in FY2024.Here is the list of 5 Top Performing Mutual Funds in the last financial year in FY2023-24 (For the period 1-Apr-2023 to 31-Mar-2024)

#1 – Motilal Oswal S&P BSE Enhanced Value Index Fund – Last Financial Year Returns – 67.2%

#2 – Quant Value Fund – Last Financial Year Returns – 58.7%

#3 – UTI Nifty 500 Value 50 Index Fund – Last Financial Year Returns – 57.3%

#4 – Bandhan Small Cap Fund – Last Financial Year Returns – 56.3%

#5 – ICICI Prudential BHARAT 22 FOF – Last Financial Year Returns – 55.8%

Note: We have excluded ETFs and sector / thematic mutual funds while filtering these top funds.

5 Mutual Fund Schemes with 55% to 67% returns in FY2024 – Key Details of the Funds

Here is the list of 5 Top Performing Mutual Funds in the last financial year in FY2024.

#1 – Motilal Oswal S&P BSE Enhanced Value Index Fund – Last Financial Year Returns – 67.2%

Investment Strategy of the Fund

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by S&P BSE Enhanced Value Return Index, subject to tracking error.

Absolute Returns of the fund

  • 1-Year Return: 93.8%
  • Since Inception Return: 128.9 (1 Lakh would have turned to 2.28 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 93.8%
  • Since Inception Return: 66.6%

Details of the Fund and Our View:

  • This fund was launched 1.5 years back.
  • It invests in S&P BSE Enhance Value Index. The S&P BSE Enhanced Value Index is designed to measure the performance of the 30 companies in the S&P BSE LargeMidCap with the highest valuations based on three fundamental measures – book value-to-price, earnings-to-price and sales-to-price.
  • It invests 100% in equity. Its equity component is 66% in large cap, 26% in midcap and balance in other equity instruments.
  • Its top-10 equity holdings are ONGC, NTPC, Indian Oil, SBI, Coal India, Tata Steel, BPCL, Hindalco, Power Finance Corp and HPCL.
  • One can invest as low as Rs 500 through lump sum and Rs 500 through SIP for 12 months in this fund. While there is no lock-in period, this fund has exit load of 1% if redeemed within 15 days from the date of investment.
  • This fund has generated 66.6% annualised returns since inception (1.5 years back).
  • Recently we have featured this mutual fund scheme as part of 5 Mutual Fund Schemes with 6-Month Returns between 40% and 45%
  • Like we indicated earlier, just see below chart. While the underlying index has generated 20% annualised returns in the last 10 years, the majority of the returns came only in the last 3 years. The underlying index has generated almost zero returns between Feb-2014 to Feb-2020 (pre covid), i.e. for 7 years. Investors should prefer to invest in a diversified portfolio of mutual funds instead of such high risk fund.

S&P BSE Enhanced Value Index Performance

#2 – Quant Value Fund – Last Financial Year Returns – 58.7%

Investment Strategy of the Fund

The primary investment objective of the scheme is to seek to achieve capital appreciation in the long-term by primarily investing in a well diversified portfolio of value stocks.

Absolute Returns of the fund

  • 1-Year Return: 82.99%
  • 2-Year Return: 86.4%
  • Since inception Return: 103% (1 Lakh would have turned to 2.03 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 82.99%
  • 2-Year Annualised Return: 36.5%
  • Since inception Return: 35.2%

Conclusion and our view:

  • This value mutual fund was launched 2.5 years back and it invests in stocks that are undervalued by the market. Currently, it invests 97% in equity and 3% in debt instruments. Its equity component is 85% in large cap and 12% in F&O holdings and balance in other equity instruments.
  • It invests 11% in large cap, 11% in midcap, 35% in small cap stocks and balance in other stocks.
  • Its top-10 equity holdings are Reliance, Jio Financial Services, SAIL, Orchid Pharma, IRB Infra, Arvind Smartspaces, VA Tech, Adani Power, HFCL and Orient Cement.
  • As part of debt portfolio it invests in Govt backed T-Bills.
  • One can invest as low as Rs 5,000 through lump sum and Rs 1,000 through SIP for 6 months in this fund. While there is no lock-in period, this fund has exit load of 0.5% if redeemed within 15 days from the date of investment.
  • This fund has generated 35.2% annualised returns since inception in the last 2.5 years and 58.7% returns in the last financial year FY2023-24
  • I am not that fan of value mutual fund category. Value investing requires discipline and patience. Current outperformance in this fund in the last 2.5 years is due to stock markets reaching new highs. If you are high risk appetite investor and willing to hold for the medium to long term, you can invest in such funds.

#3 – UTI Nifty 500 Value 50 Index Fund – Last Financial Year Returns – 57.3%

Investment Strategy of the Fund

The Scheme seeks to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error.

Absolute Returns of the fund

  • 6 months Return: 48.2%
  • Since inception Return: 79.6% (1 Lakh would have turned to 1.79 Lakhs)

Annualised Returns of the fund

  • Since inception Return: 90.8%

Conclusion and our view:

  • This index fund was launched 11 months back.
  • The underlying index is “Nifty500 Value 50 index” which consists of 50 companies from its parent Nifty 500 index, selected based on their ‘value’ scores. The value score for each company is determined based on Earnings to Price ratio (E/P), Book Value to Price ratio (B/P), Sales to Price ratio (S/P) and Dividend Yield.
  • The underlying index was launched in 2018 and back tested from 2005.
  • The index top-10 equity holdings are ONGC, Power Grid, Coal India, SBI, Tata Steel, Grasim Industries, IOC, NTPC, Vedanta and Hindalco
  • One can invest as low as Rs 5,000 through lump sum and Rs 500 through SIP for 6 months in this fund. There is no lock-in period and no exit load too.
  • The underlying index has generated 17.2% annualised returns since inception from 2018 and 57.3% returns in the last financial year FY2023-24
  • While the mutual fund is new, the underlying index has over 18 years historical data. The hidden fact is that this Nifty500 Value 50 index has generated zero returns between 2011 peak to Jan-2022 i.e. almost 11 years. The returns what you are seeing have majorly came between 2021-2024. Investors can better off investing in diversified mutual fund portfolio than such funds. If you read the article on 5 Worst Performing Mutual Funds in last 10 years (1% to 5% Annualised Returns) you would realise the importance of analyzing your mutual funds periodically and exiting underperforming funds.

#4 – Bandhan Small Cap Fund – Last Financial Year Returns – 56.3%

Investment Strategy of the Fund

The Scheme seeks to generate long term capital appreciation by investing predominantly in equities and equity linked securities of small cap segment.

Absolute Returns of the fund

  • 1-Year Return: 77.9%
  • 2-Year Return: 69.9%
  • 3-Year Return: 135.1%
  • Since inception Return: 287.5% (1 Lakh would have turned to 3.87 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 77.9%
  • 2-Year Annualised Return: 30.3%
  • 3-Year Annualised Return: 32.9%
  • Since inception Return: 39%

Conclusion and our view:

  • This small cap mutual fund was launched 3 years back. Since this fund invests in small cap companies, it is high risk fund, however rewards with high returns too.
  • Currently, it invests 90% in equity and 10% in other investments.
  • It invests 2% in large cap, 15% in midcap, 49% in small cap stocks and balance in other equity instruments.
  • Its top-10 equity holdings are REC, Arvind, Apar Industries, Cholamandalam Finance, Shailly Engg, PFC, TVS Holdings, Manappuram Finance, Motilal Oswal Financial Services and Nitin Spinners.
  • As part of other category of investments, it invests in TREPS.
  • One can invest as low as Rs 1,000 through lump sum and Rs 100 through SIP for 6 months in this fund. While there is no lock-in period, this fund has exit load of 1% if redeemed within 365 days from the date of investment.
  • This fund has generated 39% annualised returns since inception in the last 3 years and 56.3% returns in the last financial year FY2023-24
  • This fund was launched in Feb-2020 just before stock market crash. Thanks to stock market boom in the last 3 years, this fund was able to generate high returns too. Recently we have posted an article 5 Mutual Fund Schemes with 10-Year Returns between 920% to 1,250%, out of which 3 mutual funds are from smallcap segment. Such Smallcap stocks have power to multiple your returns in medium to long term.
  • If you are high risk appetite investor and willing to invest for medium to long term, you can invest in such funds.

#5 – ICICI Prudential BHARAT 22 FOF – Last Financial Year Returns – 55.8%

Investment Objective:

ICICI Prudential BHARAT 22 FOF (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of BHARAT 22 ETF.

Such ETF portfolio has 18 PSU and 3 private sector firms.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 73.8%
  • 2-Year Return: 103.4%
  • 3 Year Return: 187.8%
  • 5-Year Return: 174%
  • Since Inception Return: 203.9%

Annualised Returns of the fund

  • 1-Year Return: 73.8%
  • 2-Year Annualised Return: 42.5%
  • 3-Year Annualised Return: 42.2%
  • 5-Year Annualised Return: 22.3%

Conclusion and our view:

  • This fund invests in Bharat 22 ETF which has majorly PSU companies and 3 private sector firms.
  • The underlying ETF top-10 equity holdings are L&T, NTPC, ITC, Power Grid, Axis Bank, SBI, ONGC, Nalco, BEL and Coal India.
  • One can invest as low as Rs 5,000 through lump sum and Rs 1,000 through SIP for 6 months in this fund. There is no lock-in period nor exit load.
  • This fund has generated 18% annualised returns since inception and 55.8% returns in the last financial year FY2023-24
  • This fund was launched in Jun-2018 and generated almost zero returns till Apr-2021. We could see PSU sector outperformance in the last 2 years and many experts believe that it is due to unlocking the value of the PSU companies. PSU stocks might see upside for couple of more years too. If you are high risk appetite investor and willing to invest for the short to medium term, you can invest in such funds.

3 comments

  1. I sir i want to invest a corpus amount for two to three years,I can take a risk,I want to create a wealth.Here by also thinking of getting a fixed income every month.
    Thanking you

  2. Good evening sir.
    I wanted to start investing in mutual funds , around Rs,25000 month, the investment period may be 1 to 3 years, and i will take high risks, so pl advise me , which mutual funds i should to invest , because I am new for this field. Pl help me.
    Thank you sir.

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