5 Mutual Fund Schemes with 6-Month Returns between 40% and 45%

Stock markets have made new highs in the last 6 months. Nifty 50 has gained 12% returns during this period. Is your mutual fund part of Top Performing Mutual Funds in the last 6 months? In this article we would talk about 5 Mutual Funds with 6 month returns between 40% to 45%, their investment objective, performance in the last 1 to 10 years and also provide our view about these funds.

How did we filter these mutual funds list?

We have considered all mutual funds in India including sector funds and thematic mutual funds.

We have filtered 5 funds that generated highest returns in the last 6 month period.

These 5 funds generated 40% to 45% returns in the last 6 months.

None of these funds are part of 20 Equity Mutual Funds with Positive Returns every year in last 10 years.

5 Mutual Fund Schemes with 6-Month Returns between 40 and 45

Top 5 Mutual Funds with 6-Month Returns between 40% and 45%

Here is the list of the mutual funds that generated highest returns in the last 6 months from 27-Sep-23 to 26-Mar-24.

#1 – ICICI Prudential PSU Equity Fund – 6 month returns – 45.6%

#2 – Quant Infrastructure Fund – 6 month returns – 45.2%

#3 – ABSL PSU Equity Fund – 6 month returns – 43.7%

#4 – Quant Value Fund – 6 month returns – 41%

#5 – Motilal Oswal S&P BSE Enhanced Value Fund – 6 month returns – 40.4%

5 Mutual Funds with 6-Month Returns between 40% and 45%  – Performance and Risk Metrics

Now let us get into more details about these funds, their performance and various other metrics.

#1 – ICICI Prudential PSU Equity Fund – 6 month returns – 45.6%

Here are the details of the fund (direct plans) and performance in the last 10 years.

Investment Strategy

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related securities of Public Sector Undertakings (PSUs).

Absolute Returns of the fund

  • 6-month Return: 45.6%
  • 1-Year Return: 82.4%
  • Since Inception Return: 90.5%

Annualised Returns of the fund

  • 1-Year Return: 82.4%
  • Since Inception Return: 52.5%

SIP Returns of the fund

  • 1-Year: 97.1%

Conclusion and our view:

  • This PSU fund was launched 1.5 years back. It invests majorly in PSU stocks in India.
  • It invests 85% in equity, 1.25% in debt instruments and 13.4% in in other instruments. Its equity component is 59% in large cap, 17.7% in midcap, 2.6% in small cap stocks and balance in other equity instruments.
  • Its top-10 equity holdings are SBI, NTPC, Power Grid, ONGC, Coal India, Indian Bank, LIC, BPCL, NHPC and Oil India.
  • Its debt portfolio includes GOI backed T-Bills.
  • As part of other category of investments, it invests in TREPS.
  • One can invest as low as Rs 5,000 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 30 days from the date of investment.
  • We could see PSU rally in the last year and it may continue for some more time. Ace investor, Ramesh Damani says “PSU stocks will continue to lead the market rally”. While such funds are good for short term, investors can invest in a diversified mutual fund portfolio for a medium to long term.

#2 – Quant Infrastructure Fund – 6 month returns – 45.2%

Investment Strategy of the Fund

The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Infrastructure focused companies.

Absolute Returns of the fund

  • 6-month Return: 45.2%
  • 1-Year Return: 73.7%
  • 2-Year Return: 87.3%
  • 3-Year Return: 184.7%
  • 5-Year Return: 357.6%
  • 10-Year Return: 806.6% (1 Lakh would have turned to 9.06 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 73.7%
  • 2-Year Annualised Return: 36.8%
  • 3-Year Annualised Return: 41.7%
  • 5-Year Annualised Return: 35.5%
  • 10-Year Annualised Return: 24.6%

SIP Returns of the fund

  • 1-Year: 90.8%
  • 2-Year: 51.9%
  • 3-Year: 41.5%
  • 5-Year: 44.5%
  • 10-Year: 27.2%

Conclusion and our view:

  • This is an Infrastructure fund that invests majorly in Infrastructure and related companies in India.
  • It invests 93% in equity incl 10% in F&O Holdings, 3.6% in debt instruments and 4% in other instruments. Its equity component is 24% in large cap, 14.8% in midcap, 23.49% in small cap stocks and balance in other equity instruments.
  • Its top-10 equity holdings are Reliance, Jio Financial Services, IRB Infra, LIC, Adani Power, Kalyan Jewellers, Swan Energy, SAIL, NCC and PNB.
  • Its debt portfolio includes GOI Bonds.
  • As part of other category of investments, it invests in TREPS.
  • 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 90 days from the date of investment.
  • This fund has been a consistent performer that has generated 19.8% annualised returns since inception. It has beaten its benchmark NIFTY Infrastructure TRI consistently in the last 1 year, 5 years and 10 years time frame too.
  • This fund invests in Infrastructure related stocks only i.e. It invests in one sector, hence high risk. India’s Push for Infrastructure Development may continue for some more time. High Risk investors who want to invest for next 3-5 year tenure can invest in such funds. If you are a long term investor, you can invest in a diversified portfolio of mutual funds instead of sector related funds.

#3 – ABSL PSU Equity Fund – 6 months return – 43.7%

Investment Strategy

The Investment objective of the scheme is to provide long term capital appreciation by investing in equity and equity related instruments of Public Sector Undertakings (PSUs)

Absolute Returns of the fund

  • 6-month Return: 43.7%
  • 1-Year Return: 91%
  • 2-Year Return: 122.5%
  • 3-Year Return: 189%
  • Since Inception Return: 234.1% (1 Lakh would have turned to 3.34 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 91%
  • 2-Year Annualised Return: 49.4%
  • 3-Year Annualised Return: 42.4%
  • Since Inception Return: 33%

SIP Returns of the fund

  • 1-Year: 103.6%
  • 2-Year: 67.5%
  • 3-Year: 51.8%

Conclusion and our view:

  • This fund was launched 4.5 years back. Even this fund invests majorly in PSU stocks. It invests 91% in equity and 9% in other instruments. Its equity component is 53% in large cap, 18% in midcap, 10% in small cap stocks and balance in other equity instruments.
  • Its top-10 equity holdings are ONGC, NTPC, SBI, Coal India, Bank of Baroda, Power Grid, GAIL, LIC, Bank of India and BHEL.
  • As part of other category of investments, it invests in Reverse Repo and TREPS instruments.
  • One can invest as low as Rs 500 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 30 days from the date of investment.
  • This fund has generated 33% annualised returns since inception.
  • This fund was part of article earlier we wrote on 5 Mutual Fund Schemes with 1-Year Returns between 66% to 90%.
  • This is an equity mutual fund that invests majorly in PSU Stocks. Like I indicated in the above section, we could see PSU rally in the last year and it may continue for some more time. While such funds are good for short term, investors can invest in a diversified mutual fund portfolio for a medium to long term.

#4 – Quant Value Fund – 6 month returns – 41%

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

  • 6-month Return: 41%
  • 1-Year Return: 70.7%
  • 2-Year Return: 81.2%
  • Since inception Return: 81.8% (1 Lakh would have turned to 1.8 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 70.4%
  • 2-Year Annualised Return: 35.5%
  • Since inception Return: 30.3%

SIP Returns of the fund

  • 1-Year: 79.8%
  • 2-Year: 42.5%

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 Smart spaces, 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 31.5% annualized returns since inception in the last 2.5 years.
  • I am not that fan of value stocks. 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 medium to long term, you can invest in such funds.

#5 – Motilal Oswal S&P BSE Enhanced Value Fund – 6 month returns – 40.4%

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

  • 6-month Return: 40.4%
  • 1-Year Return: 85.4%
  • Since Inception Return: 119% (1 Lakh would have turned to 2.19 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 83.9%
  • Since Inception Return: 63.9%

SIP Returns of the fund

  • 1-Year: 95.8%

Conclusion 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 63.9% annualised returns since inception (1.5 years back).
  • Everything is not rosy. 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 who are willing to take such risk can invest in such funds, else they can invest in a diversified portfolio of mutual funds. One should not end up like we indicated in our earlier article on Worst Performing Mutual Funds in the last 10 years.

Conclusion: One should not just assess the mutual funds based on last 6 months or last 1 year performance. You even don’t need to go with Google Gemini AI Recommended Mutual Funds list directly. As a first step, investors should assess their financial goals, risk appetite and how long they can invest. As a second step they should pick-up mutual funds that would align with them based on their goals, tenure and risk appetite.

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