Stock markets is at its peak now. Many mutual fund schemes have shown good returns in short to medium to long term. However, the last 1 year was volatile. Markets have seen the low as well as high. In this situation, assessing the mutual funds that performed well in terms of monthly returns can give a different view. In this article we would provide 5 mutual fund schemes that generated positive monthly returns in 9 out of 12 months.
Also Read: 5 Mutual Funds with 3 Year Returns upto 358%
How did we filter these mutual funds?
We have considered Value Research Online for this which gives mutual fund returns by month in the last 12 months.
All equity funds are considered.
Filtered mutual funds that generated highest monthly returns. There is 1 fund that gave positive monthly returns for 10 out of last 12 months.
There are 4 funds that gave positive monthly returns for 9 months out of last 12 months.
All other funds generated less than 9 months positive returns and taken out.
List of 5 Mutual Funds with Positive Returns in 9 out of 12 Months
Here is the list.
#1 – ICICI Prudential FMCG Fund โ Positive returns 10 out of 12 months
#2 – Franklin India Smaller Companies Fund โ Positive returns 9 out of 12 months
#3 – ICICI Prudential BHARAT 22 FOF โ Positive returns 9 out of 12 months
#4 – Parag Parikh Flexi Cap Fund โ Positive returns 9 out of 12 months
#5 – Quant Quantamental Fund โ Positive returns 9 out of 12 months
List of 5 MFs with Positive Returns in 9 out of 12 Months โ Investment objective and fund performance
Now let us get into more info about these mutual fund schemes on where the invest and how they performed in the last 12 months and also the historical performance and our view about these funds.
#1 – ICICI Prudential FMCG Fund
The objective of this scheme is to achieve long-term capital growth by primarily investing in the stocks and related securities of FMCG companies. Approximately 90 percent of the funds will be allocated to FMCG company stocks, while the remaining 10 percent will be invested in debt and money market instruments.
Monthly Returns in the last 12 months
Historical Performance and our View
This fund generated 24% annualised returns in the last 3 years and 15% annualised returns in the last 5 years and 10 years time frame.
Currently, it invests 96% in equity and balance in debt and cash. It invests 73% in large cap, 7% in Midcap and 8% in the small cap segment. It also holds 5.7% in foreign portfolio.
Our View: This is a thematic mutual fund that invests only in one sector i.e. FMCG sector. This sector is ever green sector which I keep repeating every year. However, since it invests in a single sector, its high risk. Investors with high risk tolerance can invest some portion of their portfolio in these thematic mutual funds.
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#2 – Franklin India Smaller Companies Fund
The main goal of the Fund is to generate long-term capital appreciation by primarily investing in small companies.
Monthly Returns in the last 12 months
Historical Performance and our View
This fund generated 43% annualised returns in the last 3 years, 14% annualised returns in the last 5 years and 22% annualised returns in the last 10 years time frame.
Currently, it invests 93% in equity and balance in debt and cash. It invests 4% in large cap, 3% in Midcap and 58% in the small cap segment.
Our View: This mutual fund invests majorly in small cap stocks. These small cap stocks are at high risk as these are highly volatile and sometimes illiquid too. We have recommended this mutual fund several times earlier too. High risk investors can invest in such funds for the medium to long term. Moderate to low risk investors should avoid such funds.
#3 – ICICI Prudential BHARAT 22 FOF
ICICI Prudential BHARAT 22 FOF is a fund of funds scheme designed to generate returns by investing in units of BHARAT 22 ETF. The primary objective of the Scheme is to achieve capital appreciation.
Monthly Returns in the last 12 months
Historical Performance and our View
This fund generated 36% annualised returns in the last 3 years and 14% annualised returns since inception.
The underlying Bharat 22 ETF invests 100% in equity. It invests 86% in large cap, 8% in Midcap and 6% in the small cap segment.
Our View: This mutual fund invests in the units of Bharat 22 ETF. I am not a big fan of such fund for now as it invests in limited stocks. This is more like an index fund for me. Moderate to high risk investors can invest some portion of their portfolio in such funds.
#4 – Parag Parikh Flexi Cap Fund
The investment objective of the Scheme is to actively manage a portfolio primarily composed of equity and equity related securities, with the aim of generating long-term capital growth.
In simple terms this fund invests in stocks of any market cap (large, mid cap or small cap) and even in foreign equity.
Monthly Returns in the last 12 months
Historical Performance and our View
This fund generated 30% annualised returns in the last 3 years and 19% annualised returns in the last 5 years and last 10 years
This fund invests 85% in equity and holds the balance in debt or cash. It invests 56% in large cap, 3% in Midcap and 7% in the small cap segment. It also invests 17% in foreign equity.
Our View: This flexicap mutual fund invests in large cap, mid cap and small cap stocks. It also invests some portion in foreign equity. This fund is a consistent performer in the last 5 to 10 years. Since it invests in midcap and smallcap stocks, there is some element of risk. If you are a high risk investor, you can invest in such funds for 5+ years.
Also read: How to create Rs 100 Crores with 50,000 SIP in mutual funds?
#5 – Quant Quantamental Fund
The scheme aims to outperform the underlying benchmark over the medium to long term by investing in equity and equity-related securities, with the goal of delivering superior returns.
Monthly Returns in the last 12 months
Historical Performance and our View
This fund generated 20% annualised returns since inception in the last 2 years and 2 months.
Currently, it invests 95% in equity and balance in debt and cash. It invests 50% in large cap, 14% in Midcap and 9% in the small cap segment.
Our View: This is a thematic mutual fund that follows the quant model theme. Quant model theme in simple terms is nothing but selecting the stocks based on predefined fundamental factor model. ย Personally, I am not in favor of such funds. Investors with high risk tolerance can invest some amount of their portfolio in these thematic mutual funds.
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