These 24 mutual fund schemes have consistently given over 20 per cent returns

GettyImages-1061112682Mutual fund managers and advisors always ask investors to choose schemes with a consistent performance record. The point is your scheme is supposed to perform well in both bull and bear market conditions. A flash in the pan performance in buoyant market conditions, followed by an abysmal showing during a bleak market, can eat into your profits. That is why ETmutualfunds.complumbed the data to filter out equity schemes which have consistently performed in five- as well as seven-year periods.

How did we check consistency? We used ‘rolling returns’ instead of trailing returns for the given time period. Rolling return is the average of a series of returns over a long time period. Some industry experts have called it a bullet proof method to tackle market volatility. To understand the concept better, you can read: Is ‘rolling return’ the best way to measure performance of mutual funds?

How we did it? We calculated five- and seven-year rolling returns, rolled on a daily basis over a period of 15 years, starting June 2004. Next, we filtered out those schemes which have consistently given rolling returns of over 20 per cent in both the time periods. We have specifically chosen five and seven year terms as mutual fund advisors hardly recommend equity schemes to investors with a lower time horizon. We did not consider schemes which have AUM of less than Rs 1,000 crore.

Why will you rely on this data? We have rolled the returns on a daily basis over a period of 15 years. If you have read the story hyperlinked above, you would know that these 5- and 7- year returns are average of ‘n’ number of sample returns for all the five and seven years that would have existed in these 15 years since June 2004. ‘n’ is a huge sample size. And applying a simple rule of probability here which goes as ‘higher the sample size, higher is the probability of the event getting repeated’ will help understanding why these funds are reliable.

So, here’s our list of schemes which have delivered impressive rolling returns of over 20 per cent in both five- and seven-year periods, rolled on a daily basis over the last 15 years. We have sorted the list alphabetically.

5-yr CAGR rolling returns (%)7-yr CAGR rolling returns (%)
Scheme NameMax.Min.AverageMax.Min.Average
Aditya Birla SL Equity Fund65.24-2.2022.2444.175.3621.56
Aditya Birla SL Pure Value Fund31.208.6021.8528.6015.6420.61
DSP Equity Fund64.422.8622.2542.477.8521.58
DSP Equity Opportunities Fund62.05-0.1722.4440.625.7520.12
DSP Small Cap Fund35.491.2823.9437.4512.2822.40
Franklin India Bluechip Fund55.923.5720.9540.077.8722.00
Franklin India Equity Fund56.833.2422.4839.918.1823.05
Franklin India Prima Fund67.290.7225.5548.795.6425.28
Franklin India Taxshield53.753.7221.8444.758.8920.85
HDFC Capital Builder Value Fund58.641.7422.0738.427.8521.21
HDFC Equity Fund60.294.9523.7843.599.2424.58
HDFC Mid-Cap Opportunities Fund32.477.1321.3931.2614.7921.28
HDFC TaxSaver64.132.0323.9958.276.6226.08
HDFC Top 100 Fund60.655.1123.1342.319.3322.74
ICICI Pru LT Equity Fund (Tax Saving)60.383.6723.3441.195.7521.30
ICICI Pru Multicap Fund58.06-0.1220.7738.335.4120.32
Mirae Asset Emerging Bluechip35.5720.0127.7027.2422.1224.23
Principal Emerging Bluechip Fund32.4812.6623.0331.7214.9020.86
Reliance Growth Fund74.810.7627.3553.486.1326.94
Reliance Small Cap Fund39.3916.9028.6426.8321.0423.99
Reliance Vision Fund67.68-1.3823.8249.274.2823.38
SBI Small Cap Fund38.4317.0527.9427.6518.1423.63
Sundaram Diversified Equity61.580.3121.7240.155.3020.00
Sundaram Mid Cap Fund72.392.2625.0745.418.3422.04

Data as on June 19, 2019
Source: Ace MF

Investors, however, should not base their investment decision solely on the basis of this list. While these schemes are consistent performers, you should choose them only if they are in line with your risk profile. Consult your mutual fund advisor before making any changes to your portfolio. Also, we have considered only those equity schemes that have completed at least seven years. So, we could have missed on some good schemes which have not completed our cut-off of seven years.