If you have invested in mutual funds (MFs), 2023 so far has been a sweet happy year for mutual fund investors. The mutual fund industry has bounced back strongly this year after a lackluster 2022 with a remarkable Rs 9 lakh crore surge in the asset base, driven by a buoyant equity market, stable interest rates and robust economic expansion.
In this report we will talk about the key trends in the MF industry across schemes, categories and AMCs.
The top 10 best-performing funds offer more than 50% returns.
Even the worst-performing schemes in CY2023 have offered more than 18% returns.
Smaller AMCs like JM and 360 have topped the charts for CY23.
Nippon AMC has shown a significant turnaround in its performance, specifically in the last 2 years, where the economic recovery theme has played very well in its favour.
Surprisingly, more prominent names like HDFC, ICICI and SBI are not among the top 10 performers.
2. Best and Worst Performing Category
Best Performing Category
Category
Returns
Equity – PSU
52.90%
Equity – Infrastructure
44.10%
Small-Cap
41.70%
Mid-Cap
37.40%
Sector – Technology
35.80%
Dividend Yield
35.60%
Value
33.90%
Sector – Healthcare
33.30%
Multi-Cap
33.20%
Contra
33.20%
Equity – PSU
52.90%
Equity – Infrastructure
44.10%
Worst Performing Category
Category Name
Returns
Sector – Financial Services
23.20%
Large-Cap
23.50%
Equity – ESG
24.00%
Focused Fund
26.30%
Equity – Consumption
27.60%
ELSS (Tax Savings)
27.80%
Flexi Cap
28.30%
Equity – Business Cycle
28.60%
Large & Mid- Cap
29.90%
Equity – Quant
30.60%
3. Best and worst Performing Thematic/Sectoral Categories
Category
Returns
Equity – PSU
52.90%
Equity – Infrastructure
44.10%
Sector – Technology
35.80%
Sector – Healthcare
33.30%
Equity – Other
32.30%
Equity – Quant
30.60%
Equity – Business Cycle
28.60%
Equity – Consumption
27.60%
Equity – ESG
24.00%
Sector – Financial Services
23.20%
Observations:
Broader markets performed exceptionally well in CY23, and the results can be seen in the performance of certain sectoral thematic funds and small-cap funds.
The large-cap pack suffered the most and delivered the most negligible returns as investors flocked towards chasing alpha.
Defence stocks were in the limelight as their order books surged, creating a solid pipeline for future revenue.
Still, even the worst performing sectoral/thematic category, financial services and ESG, has delivered more than 20% returns
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