We compile a list of the top-eight funds between November 2021 and October 2022
13-Dec-2022 •Ashish Menon
The euphoria of Nifty crossing the 18,000 mark in October 2021 seems distant.
Fast-forward a year, and we are still at the same level.
A lot has happened since then. The war in Ukraine, inflation and rising interest rates worldwide have ensured these last 12 months have been a wild, white-knuckle ride for the markets, with the Nifty first tripping by close to 20 per cent and later finding its feet.
The turbulence notwithstanding, SIP investors have benefited if they managed to rough it out.
In fact, more than 50 percent of ELSS, multi-cap and value-oriented mutual funds have provided active returns to SIP investors who stayed disciplined during this volatile period. Small-cap funds had an even better year, with more than 75 per cent of the funds rewarding their patient investors.
So, let's look at the better-performing mutual funds of the last 12 months and understand how they delivered outsized returns.
Motilal Oswal Midcap Fund
This fund has had a relatively concentrated portfolio. In other words, they invest in a small number of quality mid-cap stocks.
HDFC Focused 30 Fund
This fund is more focused on large-cap companies. Unlike Motilal Oswal's mid-cap fund, they have spread their money across several stocks.
It has also maintained a high cash position, which means it may be keeping more cash in hand to invest at a more opportune time.
Multi-cap funds of Kotak and Nippon
The two funds have rather contrasting stories to tell.
Kotak invests in a smaller number of stocks and has spread the money across them more equitably.
On the other hand, Nippon holds 50 per cent more stocks than Kotak. However, they have put a larger percentage of money in stocks they believe will do well.
Small-cap funds of Nippon and Tata
The two outstanding performers in the small-cap category are polar opposites too.
Nippon has a highly diversified portfolio, having an average of 145 stocks. Tata, meanwhile, invests in an average of 42 stocks.
Secondly, Nippon has kept aside 3 per cent of the money in cash and equivalents, whereas Tata has a 9-12 per cent cash allocation. This suggests Nippon is more bullish about the market, while Tata Mutual Fund may be slightly more cautious or is waiting for an opportune time to invest more.
The two funds' portfolios vary greatly too. Nippon has only 45 per cent of its money invested in small-cap stocks, and Tata's small-cap allocation exceeds 60 per cent.
Quant Tax Plan
This fund has invested 62-25-11 per cent of its money in large-, mid-and small-cap companies.
While its top bets account for more than 50 per cent of its portfolio, this fund is known to buy and sell stocks at a more aggressive frequency.
HDFC Flexi Cap Fund
This fund has a steady strategy, investing three-fourths of its money in relatively-safer large-cap stocks. It also invests more than 50 per cent of the money in higher-conviction stocks.
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