Mutual 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 (%)|
|Aditya Birla SL Equity Fund||65.24||-2.20||22.24||44.17||5.36||21.56|
|Aditya Birla SL Pure Value Fund||31.20||8.60||21.85||28.60||15.64||20.61|
|DSP Equity Fund||64.42||2.86||22.25||42.47||7.85||21.58|
|DSP Equity Opportunities Fund||62.05||-0.17||22.44||40.62||5.75||20.12|
|DSP Small Cap Fund||35.49||1.28||23.94||37.45||12.28||22.40|
|Franklin India Bluechip Fund||55.92||3.57||20.95||40.07||7.87||22.00|
|Franklin India Equity Fund||56.83||3.24||22.48||39.91||8.18||23.05|
|Franklin India Prima Fund||67.29||0.72||25.55||48.79||5.64||25.28|
|Franklin India Taxshield||53.75||3.72||21.84||44.75||8.89||20.85|
|HDFC Capital Builder Value Fund||58.64||1.74||22.07||38.42||7.85||21.21|
|HDFC Equity Fund||60.29||4.95||23.78||43.59||9.24||24.58|
|HDFC Mid-Cap Opportunities Fund||32.47||7.13||21.39||31.26||14.79||21.28|
|HDFC Top 100 Fund||60.65||5.11||23.13||42.31||9.33||22.74|
|ICICI Pru LT Equity Fund (Tax Saving)||60.38||3.67||23.34||41.19||5.75||21.30|
|ICICI Pru Multicap Fund||58.06||-0.12||20.77||38.33||5.41||20.32|
|Mirae Asset Emerging Bluechip||35.57||20.01||27.70||27.24||22.12||24.23|
|Principal Emerging Bluechip Fund||32.48||12.66||23.03||31.72||14.90||20.86|
|Reliance Growth Fund||74.81||0.76||27.35||53.48||6.13||26.94|
|Reliance Small Cap Fund||39.39||16.90||28.64||26.83||21.04||23.99|
|Reliance Vision Fund||67.68||-1.38||23.82||49.27||4.28||23.38|
|SBI Small Cap Fund||38.43||17.05||27.94||27.65||18.14||23.63|
|Sundaram Diversified Equity||61.58||0.31||21.72||40.15||5.30||20.00|
|Sundaram Mid Cap Fund||72.39||2.26||25.07||45.41||8.34||22.04|
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.