Although the stock market could reach new highs, the market could be volatile until the election. There are hundreds of mutual funds that have delivered strong returns over the past year. Some investors evaluate mutual fund performance based on XIRR returns, while others simply focus on mutual fund annualized returns. Some people check the performance of mutual funds in the previous financial year. This article provides: 5 mutual fund schemes that returned 55% to 67% in the last financial year (FY2023-24).
5 Mutual Fund Schemes to Deliver 55%-67% Returns in FY2024
There are hundreds of mutual fund schemes. 20 stock funds that generated positive returns every year. However, he has 5 mutual funds that have achieved the highest returns in 2024. Here is a list of his 5 mutual funds that performed best in the last financial year of 2023-24 (period from April 1, 2023 to March 31, 2024) .
#1 – Motilal Oswal S&P BSE Enhanced Value Index Fund – Final Financial Year Return – 67.2%
#2 – Quantitative Value Fund – Last fiscal year return – 58.7%
#3 – UTI Nifty 500 Value 50 Index Fund – Last financial year return – 57.3%
4th place – Bandhan Small Cap Fund – Last financial year return – 56.3%
#5 – ICICI Prudential BHARAT 22 FOF – Previous FY Return – 55.8%
Note: When filtering these top funds, we excluded ETFs and sector/thematic mutual funds.
5 Mutual Fund Schemes to Deliver 55%-67% Returns in FY2024 – Fund Key Details
Below is a list of the top five performing mutual funds for the final fiscal year 2024.
#1 – Motilal Oswal S&P BSE Enhanced Value Index Fund – Final Financial Year Return – 67.2%
Fund investment strategy
The plan’s investment objective is to provide a return, before expenses, equal to the total return of the securities represented by the S&P BSE Enhanced Value Return Index, subject to tracking error.
Absolute return of the fund
- 1 year return: 93.8%
- Revenue since start: 128.9 (100,000 becomes 2,280,000)
Annualized return of the fund
- 1 year return: 93.8%
- Return rate since inception: 66.6%
Fund details and our thoughts:
- The fund was established a year and a half ago.
- Invest in the S&P BSE Enhance Value Index. The S&P BSE Enhanced Value Index measures the performance of the 30 highest valued S&P BSE LargeMidCap companies based on three fundamental criteria: book value to price, earnings to price, and sales to price. It is designed to.
- 100% invested in stocks. The stock composition is 66% large-cap stocks, 26% mid-cap stocks, and the rest is other equity products.
- The company’s top 10 shareholdings are ONGC, NTPC, Indian Oil, SBI, Coal India, Tata Steel, BPCL, Hindalco, Power Finance Corp and HPCL.
- In this fund, you can invest a minimum of Rs 500 in lump sum and Rs 500 in SIP for 12 months. This fund has no lock-in period, but has an exit load of 1% if redeemed within 15 days of the investment date.
- The fund has generated an annualized return of 66.6% since its inception (1.5 years ago).
- We recently featured this mutual fund scheme as part of our next. 5 mutual fund schemes with 6-month returns of 40%-45%
- As shown earlier, see the graph below. Although the underlying index has generated an annualized return of 20% over the past 10 years, the bulk of the return has only occurred in the past three years. The underlying index produced near-zero returns from February 2014 to February 2020 (pre-COVID-19), or seven years. Investors should prefer investing in a diversified portfolio of mutual funds rather than such high-risk funds.
#2 – Quantitative Value Fund – Last fiscal year return – 58.7%
Fund investment strategy
The main investment objective of the scheme is to aim to achieve capital growth over the long term by investing in a well-diversified portfolio of primarily value stocks.
Absolute return of the fund
- 1 year return: 82.99%
- 2 year return: 86.4%
- Return rate since inception: 103% (100,000 becomes 2,030,000)
Annualized return of the fund
- 1 year return: 82.99%
- 2-year annualized return: 36.5%
- Return since establishment: 35.2%
Conclusion and our thoughts:
- This value mutual fund was founded two-and-a-half years ago and invests in stocks that are undervalued by the market. It currently invests 97% in equities and 3% in debt instruments. The company’s capital structure consists of 85% large-cap stocks, 12% F&O holdings, and the remainder in other capital instruments.
- Invest 11% in large-cap stocks, 11% in mid-cap stocks, 35% in small-cap stocks, and the rest in other stocks.
- The company’s top 10 shareholdings are Reliance, Jio Financial Services, SAIL, Orchid Pharma, IRB Infra, Arvind Smartspaces, VA Tech, Adani Power, HFCL and Orient Cement.
- As part of our debt portfolio, we invest in government-backed Treasury bills.
- In this fund, you can invest a minimum of Rs 5,000 in lump sum and Rs 1,000 in SIP for 6 months. This fund has no lock-in period, but has an exit load of 0.5% if redeemed within 15 days of the investment date.
- The fund has generated an annualized return of 35.2% since inception over the past two-and-a-half years and a return of 58.7% in its last fiscal year 2023-24.
- I’m not a fan of the value mutual fund category. Value investing requires discipline and patience. The reason this fund is currently outperforming over the past two and a half years is because the stock market has reached new highs. If you are an investor with a high risk appetite and are willing to hold for medium to long term, you can invest in such funds.
#3 – UTI Nifty 500 Value 50 Index Fund – Last financial year return – 57.3%
Fund investment strategy
The system aims to provide a return, net of expenses, that is equivalent to the total return of the securities represented by the underlying index, subject to tracking error.
Absolute return of the fund
- 6 month return: 48.2%
- Return since inception: 79.6% (100,000 becomes 1,790,000)
Annualized return of the fund
- Return rate since inception: 90.8%
Conclusion and our thoughts:
- This index fund was founded 11 months ago.
- The underlying index is the ‘Nifty 500 Value 50 Index’, which comprises 50 companies selected based on their ‘Value’ scores in the parent Nifty 500 Index. Each company’s Value Score is determined based on its earnings-to-price ratio (E/P), book-to-book price (B/P), sales-to-price ratio (S/P), and dividend yield.
- The underlying index was published in 2018 and has been backtested since 2005.
- The top 10 holdings in the index are ONGC, Power Grid, Coal India, SBI, Tata Steel, Grasim Industries, IOC, NTPC, Vedanta and Hindalco.
- In this fund, you can invest a minimum of Rs 5,000 in lump sum and Rs 500 in SIP for 6 months. There is also no lock-in period or end load.
- The underlying index has generated an annualized return of 17.2% since its inception in 2018 and a return of 57.3% in its final financial year, 2023-24.
- Although this mutual fund is new, the underlying index has over 18 years of historical data.The hidden truth is this Nifty500 Value 50 Index From its peak in 2011 until January 2022, or almost 11 years, there was zero revenue. The returns you’re seeing primarily came between 2021 and 2024. Investors benefit from investing in a diversified portfolio of mutual funds rather than in such funds. When you read the article, 5 Worst-Performing Mutual Funds of the Past 10 Years (1% to 5% Annual Return) You will recognize the importance of regularly analyzing mutual funds and withdrawing from poorly performing funds.
4th place – Bandhan Small Cap Fund – Last financial year return – 56.3%
Fund investment strategy
The scheme aims to generate long-term capital growth by investing in equity and equity-linked securities, primarily in the small-cap segment.
Absolute return of the fund
- 1 year return: 77.9%
- 2 year return: 69.9%
- 3 year return: 135.1%
- Revenue since inception: 287.5% (100,000 turns into 3.87 million)
Annualized return of the fund
- 1 year return: 77.9%
- 2-year annualized return: 30.3%
- 3-year annualized return: 32.9%
- Return since inception: 39%
Conclusion and our thoughts:
- This small-cap investment trust was founded three years ago. This fund invests in small-cap stocks, so it has high risk, but it also has high returns.
- It is currently 90% invested in stocks and 10% in other investments.
- It invests 2% in large-cap stocks, 15% in mid-cap stocks, 49% in small-cap stocks, and the rest in other equity instruments.
- The top 10 shareholding companies in the company are REC, Arvind, Apar Industries, Cholamandalam Finance, Shailly Engg, PFC, TVS Holdings, Manappuram Finance, Motilal Oswal Financial Services and Nitin Spinners.
- I invest in TREPS as part of my other investment categories.
- In this fund, you can invest a minimum of Rs 1,000 in lump sum and Rs 100 in SIP for 6 months. The fund has no lock-in period, but has a 1% exit load if redeemed within 365 days of the investment date.
- The fund has generated an annualized return of 39% since inception over the past three years and a return of 56.3% in its last financial year 2023-24.
- The fund was launched in February 2020, just before the stock market crash. Thanks to the boom in the stock market over the past three years, this fund has also been able to generate high returns.I recently posted an article 5 mutual fund schemes with 10-year returns of 920% to 1,250%, three of the mutual funds are in the small-cap segment. These small-cap stocks have the power to multiply returns over the medium to long term.
- If you are an investor with a high risk appetite and are willing to invest for medium to long term, you can invest in such funds.
#5 – ICICI Prudential BHARAT 22 FOF – Previous FY Return – 55.8%
Investment purpose:
ICICI Prudential BHARAT 22 FOF (Scheme) is a fund of funds scheme whose primary objective is to generate income by investing in units of BHARAT 22 ETF.
Such ETF portfolio includes 18 PSUs and 3 private companies.
Performance details
Absolute return of the fund
- 1 year return: 73.8%
- 2 year return: 103.4%
- 3 year return: 187.8%
- 5 year return: 174%
- Return rate since inception: 203.9%
Annualized return of the fund
- 1 year return: 73.8%
- 2-year annualized return: 42.5%
- 3-year annualized return: 42.2%
- 5-year annualized return: 22.3%
Conclusion and our thoughts:
- The fund invests in the Bharat 22 ETF, which is primarily sponsored by PSU companies and three private companies.
- The top 10 holdings of the underlying ETF are L&T, NTPC, ITC, Power Grid, Axis Bank, SBI, ONGC, Nalco, BEL and Coal India.
- In this fund, you can invest a minimum of Rs 5,000 in lump sum and Rs 1,000 in SIP for 6 months. There is no lock-in period or end load.
- The fund has generated an annualized return of 18% since its inception and a return of 55.8% in its last fiscal year 2023-24.
- The fund was established in June 2018 and has produced near-zero returns through April 2021. Over the past two years, he has seen the PSU sector outperform, and many experts believe this is due to the value being unlocked in his PSU companies. PSU stocks may also rise for a few more years. If you are an investor with a high risk appetite and are willing to invest in short to medium term, you can invest in such funds.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
