Welcome you to the Report card series! I, Jagdeep Singh, welcome you to the Groww youtube channel.
Today we have brought the mutual funds with the best returns in the last 1 year in their category to the investors. But before that, I will tell you an important thing.
All of us got report cards in childhood, and parents called the child topper when he/she scored highest. Suppose a child topped in 6th class and others did not. It is not important that this other child will not top in future years.
Here I wanted to give you the learning with our fact-based discussion. It is not important that the mutual funds that did not top earlier will also not top in future years.
Past performance can never be compared with future performance. Also, past performance doesn't indicate that a similar good/bad performance will also follow in the future.
Take this learning! Watch this video as a report card and a fact-based discussion of mutual funds categories with the best return in the last 1 year. We will also discuss their portfolios so that I can offer learning in this session.
Without taking much time, let's start today's video with the first mutual fund.
In this video, we will discuss the category wise about mutual funds. This will give an idea of the category wise report card. First, let's talk about the mutual fund that topped the large-cap category.
Let me tell you about the large-cap mutual fund category in case you don't know about it. Large-cap mutual funds have maximum exposure to large-cap companies, i.e., India's top companies for investment.
A large-cap mutual fund feature is that both risk and expected return are low (compared to small and mid-cap). This means that risk and return should be expected parallelly.
Now let's talk about the topper of large-cap mutual funds in the last 1 year. In the Blue chip/large-cap category- Canara Robeco Bluechip Equity MF has topped with more than 19% return to its investors.
If you had invested in the last 1 year, a return of more than 19% would have been delivered to you. With a 19% return to its investors, Canara Robeco Bluechip Equity MF has topped the large-cap mutual fund's category.
It means that in the last one year, this mutual fund has made the highest returns. If you want to see further details, you can refer to Groww, where its rank and performance in relation to the benchmark are also given.
Now let's talk about the exposure of Canara Robeco Bluechip Equity MF. For you, as an investor, this is a mutual fund, but it makes investments in various equities. Hence we need to know the allocation in different sectors.
As you can see from my screen, the equity sector allocation of this mutual fund. The highest allocation is in the financial sector of 31%.
The technology sector investment is 17.3%, and the next highest investment is in the Health and FMCG sector.
From here, you get an idea about the sectors in which Canara Robeco mutual fund made an investment. If any of these sectors gives a great performance, this mutual fund will give its investors a virtuous return.
After large-cap, now let's talk about mid-cap mutual funds. These are the funds that invest in mid-cap companies. Generally, there are three types of stocks in the share market.
First are large-cap companies (big companies), and second are small-cap companies (small companies). The companies in the middle are neither small-cap nor large-cap are called midcap companies.
Now let's talk of the topper in the mid-cap mutual fund category. Before this, let me tell you that the mid-cap mutual fund has many risks, but the expected return is also high.
If you compare this with large-cap then the mid-cap category has given a great performance in the past 1 year. In the last 1 year, there have been a lot of mutual funds from the midcap category that have given a remarkable return to their investors.
Now the question is- Who the topper of the midcap category in our report card is? Our report card's topper is the Quant mid-cap mutual fund, which is a direct growth plan.
In the last 1 year, it has given a return of more than 34%. By delivering a 34% return to its investors, this Quant Mid Cap mutual fund becomes the topper of our report card's mid-cap category.
Its highest sector allocation is in the healthcare sector, which has given its investors a remarkable return. Quant midcap mutual fund has more than 19% exposure in the healthcare sector.
Now let's talk about the second-highest allocation is under the chemical allocation sector. The next high great exposure is under the services/IT sector.
This mutual fund has emphasized its exposure to these categories in which sectors have performed well and shown tremendous growth.
Hence this is the benefit of investing in such a mutual fund. However, direct investment in these sectors by an investor for high returns is not a wise choice. The chances of mistakes are high as we are not so skilled to do so.
Hence you must keep your portfolio diversified, and this is how a mutual fund works. Like in this case, the diversified mutual fund increased its exposure where chances of growth were high.
Following this Quant midcap mutual fund is the topper of the mid-cap category report card. Now let's talk of the ELSS category.
After investing in the ELSS category, one cannot withdraw for the next 3 years. The advantage of this is the 80C exemption of Rs.1,50,000 on this investment where no tax is payable.
A lot of people make an investment in ELSS mutual funds to get a tax benefit. But besides this benefit, the returns offered by the ELSS mutual fund makes it important for investors.
Now let's talk of the third category: the ELSS category and the topper of the same.
The ELSS category's topper has given more than 38% return to its investors in the last 1 year. It means if you made an investment over here, then besides the tax benefit, you would have made a 38% return.
The name of this mutual fund is Quant Tax Plan Direct-Growth. You can search this on Groww. It has topped the list by delivering a 38% return to its investors in the last 1 year.
The sector allocation of this mutual fund is here on my screen. The highest exposure is in the healthcare sector, which also gave a remarkable performance in the last 1 year.
Over here, it has a 15.7% exposure. They have also made an investment in the FMCG sector, chemical sector, and technology sector.
Here I would remind a tip that I also mentioned at the starting of the video. It is not important that the mutual funds that performed best in our report card will also perform well in the future.
Also, it is not important that it will perform poorly in the future. This is because past and future performance are completely different.
Some students don't top in class in a school, but this does not determine their future performance as they can perform well. The same is the case for the mutual funds of different categories that did not top in a given time frame.
But you cannot neglect them. Whenever you are investing, you should thoroughly study their portfolio and expense ratio and then decide your investment.
All the investors will benefit from diversification. When you invest in one category you can focus on 2-3 mutual funds to diversify your risk.
It is important to look at the topper as important. However, other mutual funds that have performed poorly in the past can hold the capability to outperform other mutual funds in the future.
You should not make an investment by just looking at a mutual fund but should look at the others in the same category along with their exposure.
You should make an investment only after a great diversification. Now let's talk about the last category- Small-cap mutual fund and its topper.
The small-cap mutual fund category has high risk, but it outperforms all other categories in performance. The same thing has happened in the last 1 year as we have witnessed a complete turnaround in the share market.
Small-cap mutual funds have given the best performance to their investors. The Quant Cap Direct-Growth mutual fund that has given a 68% return in the last 1 year is the topper of this category.
This mutual fund has become the topper of this category by delivering a 68% return to its investors. Let's talk in detail about the exposure in the sectors.
Let me take you to my screen. As you can see on my screen, this mutual fund's greatest exposure is in the healthcare sector, with 22.6% exposure.
Besides this, the mutual fund has great exposure in Technology, FMCG, and Chemicals sectors.
Now let's talk about one more mutual fund from the small-cap category, which has given a remarkable return to its investors. This mutual fund from the small-cap category has given more than a 50% return to its investors.
The return delivered is almost 51.5% in the last 1 year. Its name is BOI (Bank of India) AXA Small Cap mutual fund.
In the last 1 year, it has given a return of around 51% to its investors. This mutual fund is also from the small-cap category.
Now let's talk about the sector exposure of BOI AXA small-cap mutual fund. As you can see on my screen, this mutual fund's highest exposure is in the Chemical sector, which stands at 17.6%.
Besides this, it has exposure in the Financial and Healthcare sector of 16.5% and 14.6%, respectively.
You can see these details on the Groww app. So this was about the top five mutual funds from the four categories that gave high returns to their investors.
Now let's talk about the bonus of this video. Here I will tell you about a category that might not be much heard of by you.
The topic of this video - 5 best performing mutual funds has been completed. Now, let's move to the bonus. Under bonus, I will talk about a category which can be useful for you.
Many mutual fund investors get confused regarding the investment in large, small, and mid-cap mutual funds.
But there is a category which is a multi-cap mutual fund that makes investment in all three, i.e., large, small, and mid-cap mutual funds.
Now let's talk about two such mutual funds that have given great returns to their investors in the last one year. The first one is Parag Parikh Long term Equity Mutual Fund multi-cap with a 31% return in last one year.
As told in the bonus, the Multi cap mutual funds make investments in all categories. As they invest in the small-cap category, their return is high compared to the large-cap mutual fund's category.
Besides Parag Parikh, there is one more mutual fund from the multi-cap category: UTI Equity fund. It has given more than a 25% return to its investors.
This is bonus information for you so that you can know about the multi-cap category. In the entire video, I have focused that you should not make an investment in a mutual fund based on past performance.
But you should make your decision after researching the MF, knowing your risk appetite, considering the diversification and risk-taking capability of the mutual fund.
Small-cap mutual funds may have given high returns in the past one year, so you might feel to make an investment over there. But small-cap mutual funds are risky as compared to other categories.
When the market falls down, large-cap might fall by 5% fall, but small-cap can even fall by 15-20%. We had seen this in the covid situation.
Understand your risks and then make an investment. Don't watch past returns and then do so.
This is our video in the Report card series about five mutual funds that gave high returns to their investors for the past one year.
I hope that you liked today's video. If you liked it, then do press the like button. Comment below your investment preference out of the talked mutual funds. Also, mention your reason along with it.
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Happy investing!