Top Mutual Funds that outperformed every quarter in last 3 years

Top Mutual Funds that outperformed every quarter in last 3 yearsEquity markets are volatile in the last few quarters. While large cap stocks have corrected by 15% to 20%, Midcap and smallcap stocks have fallen by more 50% to 60%. We can clearly see this in mutual fund schemes performance too. If one were to look at the quarterly performance of the mutual fund schemes, I could see 2 mutual fund schemes that has always generated positive returns for the majority of the time in the last few quarters. In this article we would provide Top Mutual Funds that outperformed every quarter in last 3 years (12 quarters).

Also Read: Best Mutual Funds with highest SIP returns in last 10 years

What is this quarterly performance view of mutual funds?

Generally, mutual fund schemes performance seen only for 1 year or 3 years or 5 years or 10 years. However, due to covid-19 market correction, bull run after this and recent market correction, performance metrics might show fluctuating nos. If you are a long term investor, you need not worry about such fluctuations. However, if you are investing in mutual funds for short to medium term, you might be worried about these huge fluctuations. One wants to invest only in mutual funds that are generating some or other positive returns at least every quarter. Hence, one can also look at the quarterly performance of the mutual funds.

As an example Q4 FY21-22 quarterly performance can be computed for returns from 1-Jan-22 to 31-Mar-22 of that fund.

How we filtered these funds?

There are 600 odd equity mutual fund schemes in India. These include sector funds, large cap, Midcap, smallcap and thematic funds. We have considered all these funds to filter the outstanding mutual fund schemes. However, these funds do not include hybrid funds or debt mutual funds.

Filtered funds that generated positive returns (>0%) every quarter for the last 12 quarter i.e. 3 years.

Filtered funds that generated the highest number of quarterly positive returns. We could see only 2 funds that generated positive returns for 11 quarters out of last 12 quarters / 3 years. These 2 funds did not do well for Jan-20 to Mar-20 period (covid time), however, has consistently generated positive returns for the rest of 3 years time frame.

Surprisingly, these funds generated very good absolute returns of 56% to 70% in the last 3 years in spite of the market crash during covid.

Top 2 Funds that outperformed every quarter in last 3 years

Here are the two funds

#1 – Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan

#2 – Edelweiss US Value Equity Offshore Fund

Top Mutual Funds that outperformed every quarter – Detailed View

Let’s get into more info about these funds.

#1 – Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan

Investment objective: The scheme will be invested in (1) stocks issued either in India (up to 35%) or overseas (at least 65%) of specific commodity focused companies, and/or (2) overseas mutual fund schemes (up to 35%) having similar investment objectives. Scheme will be managed by investing in stocks that are also a part of the S&P Global Agribusiness Index.

Where does the fund invests currently?

This fund invests in India and overseas markets.

It currently invests 97% of its portfolio in equity and balance it holds in cash.

This scheme invests 46% in the chemical sector, 42% in consumer staples and balance in automobiles and capital goods.

It top holdings are CF industries holdings, Bunge Ltd, Nutrien, Archer Daniesl, Israel chemicals, UPL etc.

Fund Performance

Here is the fund performance in last 12 quarters. These are absolute returns during that period.

Qtr Returns %
Qtr ending – Jun-19 4.64
Qtr ending – Sep-19 0.87
Qtr ending – Dec-19 5.67
Qtr ending – Mar-20 -28.99
Qtr ending – Jun-20 12.17
Qtr ending – Sep-20 8.23
Qtr ending – Dec-20 17.95
Qtr ending – Mar-21 17.4
Qtr ending – Jun-21 4.86
Qtr ending – Sep-21 1.77
Qtr ending – Dec-21 6.28
Qtr ending – Mar-22 19.34
Total in last 12 Qtrs 70.19

Here is the annualized performance, including Apr-22 to till date.

1 Yr 3 Yr 5 Yr
14% 15% 12%

This fund generated 8% annualized return since inception. The negative point is that it has a low AUM of just Rs 18 Crores only.

#2 – Edelweiss US Value Equity Offshore Fund

Investment objective: The scheme seeks to provide long term capital growth by investing predominantly in JPMorgan Funds – US Value Fund, an equity fund which invests primarily in a value style based portfolio of US companies.

Where does the fund invests currently?

This fund invests in another fund, which has portfolio of US based companies.

It currently invests 99% of its portfolio in equity and balance it holds in cash.

Fund Performance

Here is the fund performance in last 12 quarters.

Qtr Returns %
Qtr ending – Jun-19 3.06
Qtr ending – Sep-19 4.59
Qtr ending – Dec-19 9.61
Qtr ending – Mar-20 -21.24
Qtr ending – Jun-20 13.66
Qtr ending – Sep-20 4.49
Qtr ending – Dec-20 13.82
Qtr ending – Mar-21 12.74
Qtr ending – Jun-21 6.59
Qtr ending – Sep-21 0.74
Qtr ending – Dec-21 6.76
Qtr ending – Mar-22 1.09
Total in last 12 Qtrs 55.91

Here is the annualized performance, including Apr-22 to till date.

1 Yr 3 Yr 5 Yr
-2% 12% 11%

This fund generated 10% annualized return since inception. The negative point is that it has a low AUM of Rs 79 Crores only.

Also Read: Top Performing Mutual Funds in last 6 months

Who can invest in these funds?

These funds generated consistent returns every quarter for the majority of the period. However, even the current quarter i.e. Apr-22 to Jun-22, we could see a major stock market correction both in India and overseas markets. Hence, you might see fall in NAV in the last 2.5 months. While these funds generated positive returns every quarter, there is no guarantee that such funds can outperform with positive returns in future too. Since these funds invest in overseas, there is foreign exchange risk and geopolitical risks beyond investing in equity. Investors should understand all these factors before investing in these funds.

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Suresh KP

7 comments

  • Savaee

    Hi Suresh,
    Please provide your view on investing in ICICI Prudential US Bluechip Equity Fund for international exposure. Currently very few international funds are available for SIP.

    • Good Fund. However, why don’t you prefer investing in US based index fund (Nasdaq 100 index fund or S&P 500 fund)? These would be consistent performers. you can add 1 US index fund and 1 active fund.

  • S.Sankaranarayanan

    I hope to learn a lot from you.

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