The stock market is at its peak right now. Many mutual fund schemes have shown excellent returns over the short, medium and long term. However, the past year has been turbulent. The market has seen highs as well as lows. In this context, evaluating the best-performing mutual funds in terms of monthly returns can give a different perspective. In this article 5 mutual fund schemes that delivered positive monthly returns in 9 out of 12 months.
Also read: 5 mutual funds with up to 358% 3-year returns
How did you filter these mutual funds?
For this, we looked at Value Research Online, which provides monthly mutual fund returns for the last 12 months.
All equity funds are considered.
Filtered mutual funds with the highest monthly returns. We have one fund with positive monthly returns in 10 of the last 12 months.
There are 4 funds with positive monthly returns for 9 of the last 12 months.
All other funds produced positive returns in less than 9 months and were exited.
List of 5 mutual funds with positive returns in 9 out of 12 months
Here is the list.
#1 – ICICI Prudential FMCG Fund – positive returns in 10 out of 12 months
#2 – Franklin India Small Business Fund – positive revenue in 9 out of 12 months
#3 – ICICI Prudential BHARAT 22 FOF – positive return in 9 out of 12 months
#4 – Parag Palik Flexi Cap Fund – Positive returns in 9 out of 12 months
#5 – Quant Quantamental Fund – Positive returns in 9 out of 12 months
List of 5 MFs with positive returns in 9 out of 12 months – investment objectives and fund performance
Here, we detail where we have invested in these mutual fund schemes and their performance over the past 12 months, our past performance and our views on these funds.
#1 – ICICI Prudential FMCG Fund
The purpose of the scheme is to achieve long-term capital growth primarily by investing in shares and related securities of fast-moving consumer products companies. About 90% of the funds will be allocated to stocks of FMCG companies and the remaining 10% will be invested in bonds and money market instruments.
Monthly earnings for the last 12 months
Achievements and Our Views
The fund has generated a 24% annualized return over the last three years and a 15% annualized return over the last five and ten years.
The company currently invests 96% in equities and the rest in debt and cash. It invests 73% in large-cap, 7% in mid-cap, and 8% in the small-cap segment. It also holds 5.7% of the overseas portfolio.
Our view: This is a thematic mutual fund that invests in only one sector, such as the FMCG sector. This sector is an evergreen sector that I repeat every year. However, since it invests in a single sector, it is riskier. Investors with a high risk tolerance can invest a portion of their portfolio in these thematic mutual funds.
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#2 – Franklin India Small Business Fund
The fund’s primary goal is to generate long-term capital growth by investing primarily in small and medium enterprises.
Monthly earnings for the last 12 months
Achievements and Our Views
The fund has generated 43% annualized returns over the past 3 years, 14% annualized returns over the past 5 years, and 22% annualized returns over the past 10 years.
The company currently invests 93% in equities and the rest in debt and cash. It invests 4% in large-cap, 3% in mid-cap, and 58% in the small-cap segment.
Our view: This mutual fund invests primarily in small cap stocks. These small-cap stocks are highly volatile and sometimes illiquid, which makes them riskier. We have recommended this mutual fund several times before. High-risk investors can invest in such funds for the medium to long term. Medium to low risk investors should avoid such funds.
#3 – ICICI Prudential Bharat 22 FOF
The ICICI Prudential BHARAT 22 FOF is a fund of funds scheme designed to generate income by investing in BHARAT 22 ETF units. The main purpose of this scheme is to achieve capital appreciation.
Monthly earnings for the last 12 months
Achievements and Our Views
The fund has delivered an annualized return of 36% over the past three years and an annualized return of 14% since inception.
The underlying Bharat 22 ETF is 100% invested in equities. It invests 86% in large-cap, 8% in mid-cap, and 6% in the small-cap segment.
Our view: This mutual fund invests in units of Bharat 22 ETF. I’m not a big fan of such funds right now because they invest in a limited number of stocks. This is like an index fund to me. Medium to high risk investors can invest part of their portfolio in such funds.
#4 – Parag Palik Flexi Cap Fund
The investment objective of the scheme is to actively manage a portfolio consisting primarily of equities and equity-related securities with the aim of generating long-term capital growth.
Simply put, the fund invests in stocks of any market capitalization (large-cap, mid-cap, small-cap) and even foreign stocks.
Monthly earnings for the last 12 months
Achievements and Our Views
The fund has delivered a 30% annualized return over the last three years and a 19% annualized return over the last five and ten years.
The fund invests 85% in equities and holds the rest in debt or cash. It invests 56% in large-cap, 3% in mid-cap, and 7% in the small-cap segment. He also invests 17% in foreign stocks.
Our view: This FlexiCap mutual fund invests in large, mid and small cap stocks. We also invest partly in foreign stocks. The fund has shown solid performance over the last 5-10 years. There is a certain amount of risk factor as it invests in mid- and small-cap stocks. If you are a high-risk investor, you can invest in such funds for more than 5 years.
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#5 – Quants Quantamental Fund
By investing in equities and equity-related securities, the scheme seeks to outperform the underlying benchmarks and deliver superior returns over the medium to long term.
Monthly earnings for the last 12 months
Achievements and Our Views
The fund has generated a 20% annualized return since inception over the past 2 years and 2 months.
We currently invest 95% in equities and the rest in debt and cash. It invests 50% in large-cap, 14% in mid-cap, and 9% in the small-cap segment.
Our view: It is a thematic investment trust that follows the theme of the quantitative model. In a nutshell, the subject of quant models is nothing more than the selection of stocks based on pre-defined fundamental factor models. Personally, I am not in favor of such funds. Investors with a high risk tolerance can invest a portion of their portfolio in these thematic mutual funds.
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