Due to recent bull run, many mutual funds have been outperforming in the last 1 to 3 years time frame. While such short term may not be appropriate to analyse a mutual fund, it is always good to review such funds in case you want to invest for medium to long term. This article provides information on 5 mutual fund schemes that yielded returns between 160% and 215% in the last 3 years from 21-Jan-2021 to 20-Jan-2024.
Also Read: Are Banking Sector Mutual Funds good in 2024?
5 Mutual Fund Schemes with 3-Year Returns Between 160% to 215%
Here is the list of Top Performing Mutual Funds in the last 3 years that generated over 160% returns.
#1 – Quant Small Cap Fund – 3-Year Return: 215%
#2 – Nippon India Small Cap Fund – 3-Year Return: 180%
#3 – ICICI Prudential BHARAT 22 FOF – 3-Year Return: 175%
#4 – HSBC Small Cap Fund – 3-Year Return: 167%
#5 – Tata Small Cap Fund – 3-Year Return: 160%
Note: ETFs are excluded when filtering these funds.
What are Beta and Alpha in Mutual Funds?
We have given beta and alpha metrics, hence providing detailed definition for investors to understand them. You can skip this section if you are already aware of them.
Beta – It is a measure of fund’s sensitivity to the market movement. Beta of less than 1 indicate that fund would have lower swing compared to ups and downs of the benchmark. Beta of more than 1 indicate that fund would have wider swings compared to benchmark. Investors should prefer lower beta funds which can have lesser swings compared to benchmark.
Alpha – It is a measure of extra returns provided by the fund compared to the benchmark. Investors should prefer high alpha funds which can generate higher returns. One should use Alpha and Beta together which goes hand in hand when comparing between risk and returns.
5 Mutual Fund Schemes with 3-Year Return Over 160% – Investment Objective and Performance Details
Let’s get into more information about these funds.
#1 – Quant Small Cap Fund – 3-Year Return: 215%
Investment Objective:
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 Small Cap companies.
Performance Details
Absolute Returns of the Fund
- 1-Year Return: 54%
- 2-Year Return: 62%
- 3-Year Return: 215% (1 Lac would have turned to 3.15 Lacs)
- 5-Year Return: 354%
- 10-Year Return: 551%
Annualised Returns of the fund
- 1-Year Return: 54%
- 2-Year Annualised Return: 27%
- 3-Year Annualised Return: 46%
- 5-Year Annualised Return: 35%
- 10-Year Annualised Return: 20%
Our View:
Smallcap funds invests in smallcap companies which are high risk, however provides high returns too. This fund has a beta of 1.02 and alpha of 10.5. This fund has been consistent performer in the medium to long term. I am personally investing in this smallcap mutual fund too. High risk tolerance investors can make such funds as part of their portfolio for medium to long term perspective. Moderate or low risk investors should avoid such funds.
#2 – Nippon India Small Cap Fund – 3-Year Return: 180%
Investment Objective:
The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.
Performance Details
Absolute Returns of the fund
- 1-Year Return: 52%
- 2-Year Return: 58%
- 3-Year Return: 180% (1 Lac would have turned to 2.8 Lacs)
- 5-Year Return: 275%
- 10-Year Return: 1190%
Annualised Returns of the fund
- 1-Year Return: 52%
- 2-Year Annualised Return: 25%
- 3-Year Annualised Return: 41%
- 5-Year Annualised Return: 30%
- 10-Year Annualised Return: 29%
Our View:
Like I indicated above, Smallcap funds invests in smallcap and high risk. However these are rewarded with high returns too. This fund has a beta of 0.85 and alpha of 10.4. Even this fund has been consistent performer in the short, medium to long term. I am personally investing even in this smallcap fund. High risk investors can make such funds as part of their mutual fund portfolio for medium to long term perspective. Moderate or low risk investors can avoid such funds.
#3 – ICICI Prudential BHARAT 22 FOF – 3-Year Return: 175%
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 would have 18 PSU and 3 private sector firms.
Performance Details
Absolute Returns of the fund
- 1-Year Return: 60%
- 2-Year Return: 97%
- 3-Year Return: 175% (1 Lac would have turned to 2.75 Lacs)
- 5-Year Return: 166%
- Since Inception Return: 176%
Annualised Returns of the fund
- 1-Year Return: 60%
- 2-Year Annualised Return: 40%
- 3-Year Annualised Return: 40%
- 5-Year Annualised Return: 21%
Our View:
This ETF was launched in Nov-2017 by Govt of India to divest the stake. There were further follow-on offers came too. This fund has a beta of 1 and alpha of 18.6. This fund outperformed due to bull run in PSU stocks in the last 2-3 years. As per article from BusinessToday, Analysts predict robust performance from sectors such as defence, railways, and PSU banks in 2024. While such fund is good for short term, investors can invest in a diversified mutual fund portfolio for medium to long term instead of such ETF’s.
#4 – HSBC Small Cap Fund – 3-Year Return: 167%
Investment Objective:
To generate long term capital growth from an actively managed portfolio of equity and equity related securities of predominantly small cap companies
Performance Details
Absolute Returns of the fund
- 1-Year Return: 51%
- 2-Year Return: 46%
- 3-Year Return: 167% (1 Lac would have turned to 2.67 Lacs)
- 5-Year Return: 205%
- Since inception Return: 670%
Annualised Returns of the fund
- 1-Year Return: 51%
- 2-Year Annualised Return: 21%
- 3-Year Annualised Return: 38%
- 5-Year Annualised Return: 25%
- Since inception Return: 23%
Our View:
Like I indicated above, Smallcap funds are high risk, however reward with high return too. This fund has a beta of 0.81 and alpha of 9.3. Even this fund has been consistent performer in the short, medium and long term. High risk investors can invest in such funds for medium to long term perspective.
You may like: 5 Mutual Funds with 1 Year Return 66% to 90%
#5 – Tata Small Cap Fund – 3-Year Return: 160%
Investment Objective:
The scheme seeks to generate long term capital appreciation by predominantly investing in equity and equity related instruments of small cap companies.
Performance Details
Absolute Returns of the fund
- 1-Year Return: 37%
- 2-Year Return: 48%
- 3-Year Return: 160% (1 Lac would have turned to 2.6 Lacs)
- 5-Year Return: 245%
- Since inception Return: 255%
Annualised Returns of the fund
- 1-Year Return: 36.9%
- 2-Year Annualised Return: 21.7%
- 3-Year Annualised Return: 37.5%
- 5-Year Annualised Return: 28.1%
- Since inception Return: 27.7%
Our View:
As indicated above, Smallcap funds are high risk and high return funds. This fund has a beta of 0.76 and alpha of 9.5. Even this fund has been consistent performer in the short to medium to long term. High risk taking investors can invest in such funds for medium to long term tenure.
Conclusion: In summary, the mutual fund schemes highlighted in this article have demonstrated outstanding returns over the past three years, reflecting the favorable bull market conditions. However, small cap funds it comes hand-in-hand with increased risk and market volatility. Investors should carefully assess their risk tolerance, investment goals, and time horizon before considering these funds. Diversification and a well-informed investment strategy remain key elements in building a good portfolio.
- 10.5% Muthoottu Mini Financiers NCD Oct-24 Public Issue Details - October 27, 2024
- The Importance of Term Insurance for Young Families - October 21, 2024
- Indel Money NCD Oct-24 – Issue Details and Review - October 16, 2024
Very knowledgeable indeed for all kind of investors. One can invest according to his time frame .
Tnq very much for valuable information
Your literature will be helpful to have decision at right moment
Thank you
Very very nice
Thanks Santosh