However, there are many Equity Mutual Funds which have outperformed the BSE Sensex. 94% of the Diversified Equity Mutual Funds have outperformed BSE Sensex while only 72% have given positive returns. In large-cap equity mutual funds, 83% funds have beaten BSE Sensex while only 60% have given positive returns.
However, there are many Equity Mutual Funds which have outperformed the BSE Sensex.
94% of the Diversified Equity Mutual Funds have outperformed BSE Sensex while only 72% have given positive returns.
In large-cap equity mutual funds, 83% funds have beaten BSE Sensex while only 60% have given positive returns.
| Category of Mutual Fund | Benchmark | % Number of Funds Outperformed | % number of Funds with Positive return |
| Diversified Equity MFs | BSE Sensex | 94% | 72% |
| Large-Cap Equity MFs | BSE Sensex | 83% | 58% |
| Mid-Cap Equity MFs | BSE Mid-Cap | 50% | 95% |
| Small-Cap Equity MFs | BSE Small-Cap | 71% | 86% |
Source: Advisesure, NAVIndia; Note: Analysis based on 1 year return (29-12-2015 to 29-12-2015)
However, the BSE Mid-cap and BSE Small-cap have given the positive return in 2015. As on 29 December 2015, BSE Mid-cap has given 8.59% YoY return and BSE Small-cap has given 7.47% YoY return. Mid-cap and Small-cap equity mutual funds have outpaced the large cap equity funds, around 90% of the funds have given positive returns. But only 50% of the Mid-cap equity funds have beaten its benchmark (BSE Mid-cap).
Selecting the best mutual funds is a cumbersome task. One cannot select mutual funds based only on its returns or beta, a single parameter cannot tell the performance of a fund. Investing is not about making only higher returns, it is about making higher returns at minimal risk. The prudent way to select a mutual fund is based on its risk-return. Therefore, we have selected 3 large-cap equity mutual funds, 3 Mid-cap equity mutual funds and 3 Small-cap equity mutual funds based on 3 years return, Sortino ratio and beta. These funds have consistently outperformed the market and have better risk-reward.
Table A: Large Cap
However, the BSE Mid-cap and BSE Small-cap have given the positive return in 2015. As on 29 December 2015, BSE Mid-cap has given 8.59% YoY return and BSE Small-cap has given 7.47% YoY return. Mid-cap and Small-cap equity mutual funds have outpaced the large cap equity funds, around 90% of the funds have given positive returns. But only 50% of the Mid-cap equity funds have beaten its benchmark (BSE Mid-cap).
Selecting the best mutual funds is a cumbersome task. One cannot select mutual funds based only on its returns or beta, a single parameter cannot tell the performance of a fund. Investing is not about making only higher returns, it is about making higher returns at minimal risk. The prudent way to select a mutual fund is based on its risk-return. Therefore, we have selected 3 large-cap equity mutual funds, 3 Mid-cap equity mutual funds and 3 Small-cap equity mutual funds based on 3 years return, Sortino ratio and beta. These funds have consistently outperformed the market and have better risk-reward.
Table A: Large Cap
| Scheme | AMFI | 1 Year CAGR | 3 Years CAGR | 5 Years CAGR | Sortino Ratio | Beta |
| Birla Sun Life Advantage Fund (G) | 100033 | 6.14% | 21.65% | 11.22% | 1.33 | 0.97 |
| BNP Paribas Equity Fund (G) | 113544 | 5.92% | 18.96% | 12.79% | 0.97 | 0.81 |
| HDFC Capital Builder -(G) | 101764 | 5.84% | 20.56% | 11.70% | 0.50 | 0.93 |
Source: Advisesure, NAVIndia; Note: Returns as on 29/12/2015
Table B: Mid Cap
Table B: Mid Cap
| Scheme | AMFI | 1 Year CAGR | 3 Years CAGR | 5 Years CAGR | Sortino Ratio | Beta |
| BNP Paribas Mid Cap Fund (G) | 113566 | 16.65% | 27.76% | 20.49% | 1.78 | 0.83 |
| Canara Robeco Emerging Equities (G) | 102920 | 14.64% | 31.84% | 21.71% | 1.60 | 0.92 |
| UTI-Mid Cap Fund (G) | 102394 | 7.66% | 30.74% | 19.35% | 1.58 | 0.88 |
Source: Advisesure, NAVIndia; Note: Returns as on 29/12/2015
Table C: Small Cap
Table C: Small Cap
| Scheme | AMFI | 1 Year CAGR | 3 Years CAGR | 5 Years CAGR | Sortino Ratio | Beta |
| DSP BR Micro-Cap Fund (G) | 105989 | 21.41% | 35.78% | 21.15% | 2.08 | 0.90 |
| Reliance Small Cap Fund (G) | 113177 | 16.25% | 36.44% | 22.07% | 1.15 | 0.90 |
| Sundaram S.M.I.L.E Fund (G) | 100795 | 10.25% | 28.91% | 16.13% | 1.41 | 0.99 |
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