3 Mutual Fund Schemes – 12% returns every year – Last 5 years

We all know that equity mutual funds can be volatile in the short term, however, can provide stable returns in the medium to long term. Some mutual funds provide abnormal returns in 1 year, and losses in another year. Investors are always worried about such fluctuations. If you are one among such investor, this article is for you. In this article, we would provide the analysis of 3 Mutual Fund Schemes that generated over 12% annualized returns every year without a miss for the past 5 years (2016-2021).

3 Mutual Fund Schemes – 12% returns every year - Last 5 years 2016-2022

Also Read: Best Midcap Mutual Funds to invest in 2022

List of Mutual Fund Schemes with 12% returns every year – 2016-2021

When I say over 12% annualized returns every year consistently, you might be wondering what exactly is this. Let me explain with an example.

There is an X mutual fund scheme which generated 50% returns in 2021, 30% returns in 2020, however posted 10% negative returns in 2019. No, we are not talking about such cases.

We are talking about mutual fund schemes that generated over 12% annualized returns every year consistently without a miss in the last 5 years for the period 2016-2021.

Here is the list of mutual fund schemes that generated over 12% consistent returns every year.

#1 – Aditya Birla Sun Life Digital India Fund

#2 – SBI Technology Opportunities Fund

#3 – Franklin India Technology Fund

If you observe, all these are from technology sector mutual fund schemes. Investors might argue that post covid, due to technology boom, they are able to generate good returns. But what about pre-covid levels? Even during 2016-2019, they are able to generate over 12% returns every year.

3 Mutual Fund Schemes over 12% in Last 5 years – Scheme wise info

Now that we know the list of consistent performing mutual funds, let us get into more specifics on how they performed year on year along with other risk and reward statistics.

#1 – Aditya Birla Sun Life Digital India Fund

The MF aims for normal capital appreciation through investments in high quality, fast growing companies in the information technology sector. The fund will follow a bottom-up approach to stock prices.

Key Ratios and Performance of the Fund

Performance & Risk Metrics Aditya Birla Sun Life Digital India Fund
Returns – 2017 23%
Returns – 2018 17%
Returns – 2019 12%
Returns – 2020 61%
Returns – 2021 73%
5 Years – SIP Returns 34%
5 Years – Annualised Returns 30%
AUM –  Crores 3,086
Expense Ratio 0.74%
Beta 0.86
Alpha 7.66

This fund has a low beta of 0.86. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 7.66. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests in Infosys, TCS, HCL Tech, Tech M, Wipro, Bharti Airtel, Mphasis, Persistent Systems, Cyient, KPIT Tech etc. It also invests in overseas companies like Apple, Microsoft etc.,

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 95.4% of the times
  • Over 8% returns – 3.6% of the times
  • < 8% returns – 0.97% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 78.5% of the times
  • Over 8% returns – 18% of the times
  • < 8% returns – 3.5% of the times
  • Negative returns – Zero times

This fund generated 24.8% annualized return since inception in 2013 (direct fund). It is one of the consistent performing technology mutual fund schemes.

#2 – SBI Technology Opportunities Fund

The scheme seeks to provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities in technology and technology related companies.

Key Ratios and Performance of the Fund

Performance & Risk Metrics SBI Technology Opportunities Fund
Returns – 2017 14%
Returns – 2018 19%
Returns – 2019 13%
Returns – 2020 49%
Returns – 2021 68%
5 Years – SIP Returns 32%
5 Years – Annualised Returns 27%
AUM –  Crores 2,313
Expense Ratio 0.91%
Beta 0.79
Alpha 5.39

This fund has a low beta of 0.79. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 5.39. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests in Infosys, TCS, HCL Tech, Tech M, Wipro, Bharti Airtel, Persistent Systems, Cyient, KPIT Tech etc. It also invests in US tech companies like Alphabet, Microsoft, NVIDIA, Cognizant etc.,

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 95.4% of the times
  • Over 8% returns – 2.9% of the times
  • < 8% returns – 1.7% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 68.8% of the times
  • Over 8% returns – 24% of the times
  • < 8% returns – 7.2% of the times
  • Negative returns – Zero times

This fund generated 24% annualized return since inception in 2013. It is one of the consistent performing Technology Mutual Funds.

#3 – Franklin India Technology Fund

The scheme seeks above normal capital appreciation through investments in high quality, fast growing companies in the information technology sector. The fund will follow a bottom-up approach to stock prices.

Key Ratios and Performance of the Fund

Performance & Risk Metrics Franklin India Technology Fund
Returns – 2017 20%
Returns – 2018 13%
Returns – 2019 13%
Returns – 2020 58%
Returns – 2021 40%
5 Years – SIP Returns 25%
5 Years – Annualised Returns 23%
AUM –  Crores 742
Expense Ratio 1.42%
Beta 0.76
Alpha 2.54

This fund has a low beta of 0.76. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 2.54. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests in Infosys, TCS, HCL Tech, Bharti Airtel, Info Edge, Tech M, Zomato, Makemytrip, Affle India etc., It also invest in overseas companies and funds like Franklin Technology Fund, Cognizant Tech, Taiwan Semiconductor, Freshworks, Samsung Electronics (South Korea) etc.,

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 87% of the times
  • Over 8% returns – 10.9% of the times
  • < 8% returns – 2.1% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 64.3% of the times
  • Over 8% returns – 28.1% of the times
  • < 8% returns – 7.6% of the times
  • Negative returns – Zero times

This fund generated 20.2% annualized return since inception in 2013 (direct fund).

You may like: Best Mutual Funds that gave 10x returns in last 10 years

List of these 3 mutual funds with the last 1 to 5 years annualized returns

Mutual Fund Name 1 Year 3 Years 5 Years
Aditya Birla Sun Life Digital India Fund 39% 35% 30%
SBI Technology Opportunities Fund 42% 32% 27%
Franklin India Technology Fund 15% 26% 23%

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Suresh KP

5 comments

  • Savio

    Hi Sureshji, Currently i have canara robeco large cap, parag parikh flexi and quant mid and small cap SIP investment of 5000 in each per month. SIP in single fund in single category is correct approach or do i need to have 2 funds in each category. Any other category of mutual fund do i need to consider rather investing 5000 for single fund in each category to get diversification and high returns in long term?

    • Hello Savio, You can have one more fund in international category. You may look for MO NASDAQ 100 FoF and MO S&P 500 fund. I personally invest 2 funds from each category. Underperformance by one fund should not impact our portfolio, hence this precaution.

  • amit

    Hello sir ,
    May i know why Tata Digital India Fund is not mentioned , it has higher returns , lower expense ratio. Also all the funds are similar in nature (technology related) , could you please provide some diversification options as well.

    Regards,
    Amit

    • This post is about mutual funds that gave over 12% returns continously every year. Regd Tata digital fund, here is the performance
      2021 – 74% good
      2020 – 55% good
      2019 – 7.4% (failed in our test)
      2018 – 19% – Good
      2017 – minus 6%

      Now you know why I filtered out this fund (2019 low returns + 2017 minus returns)

  • Sanjeev

    Very nice article on Technology MF, very studied and detailed, thank you Suresh ji.

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