The Indian stock market closed 2023 with a stellar rise, with BSE Sensex and NSE Nifty both witnessing nearly 20 per cent hike this fiscal year. This spike hugely factored in when it came to the returns of mutual fund investors.
Those who invested in mutual funds in the year bagged major returns, with the top 5 large cap firms delivering over 24 percent returns each, while mid cap and small cap firms delivered nearly over 40 percent each.
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The average annual return for large cap mutual funds was 16.15 per cent in 2023, while that of mid cap and small cap firms stood at 30.77 per cent and 34.29 per cent on average, respectively. Large cap firms offered comparatively lower returns last year, while most small cap mutual funds had over 40 percent annual returns.
The highest delivering small cap mutual fund in 2023 was Mahindra Manulife Small Cap Fund, which offered over 53 per cent annual return last year, according to data available on Association of Mutual Funds in India (AMFI).
While large cap funds offered the lowest annual percentage of return in 2023, their total AUMs (assets under management) remained the highest of all, amounting to ₹2,76,639 crore. Mentioned below are the top five small cap, mid cap and large cap funds with the highest return in 2023.
Top 5 large cap mutual funds with highest returns
Top large cap mutual funds
Annual Returns 2023
Nippon India Large Cap Fund
28.85%
Bank of India Bluechip Fund
27.05%
HDFC Top 100 Fund
26.61%
JM Large Cap Fund
26.16%
Invesco India Large Cap Fund
24.45%
Top 5 mid cap mutual funds with highest returns
Top mid cap mutual funds
Annual Returns 2023
Nippon India Growth Fund
42.93%
JM Midcap Fund
42.88%
Mahindra Manulife Mid Cap Fund
41.31%
HDFC Mid-Cap Opportunities Fund
41.11%
WhiteOak Capital Mid Cap Fund
38.53%
Top 5 small cap mutual funds with highest returns
Top small cap mutual funds
Annual Returns 2023
Mahindra Manulife Small Cap Fund
53.22%
Bandhan Small Cap Fund
49.48%
Franklin India Smaller Companies Fund
49.44%
ITI Small Cap Fund
48.54%
Quant Small Cap Fund
44.90%
(Data by Mint, AMFI till December 2023)
Mutual funds are the go-to investment options for long-term investors. One can make a large lump sum investment or sign up for a monthly SIP when it comes to investing in mutual funds, depending on the financial assets of the investor.
While mutual funds don't come without their own risks, investing in MFs is considered a less risky option since the investments are long term, increasing the possibility of a good return.
Among 2023′s best-performing funds: Baron Fifth Avenue Growth BFTIX, up 57.9%, and Fidelity Blue Chip Growth ETF FBCG, up 57.2%. Gains in both funds were fueled by the massive rally in Nvidia NVDA, which surged 230% this year. Meanwhile, value funds—especially small value—flipped to worst from best.
These include JM Value Fund, Nippon India Value Fund and Aditya Birla Sun Life Pure Value Fund and Axis Value Fund. Some multi cap mutual funds gave returns as high as 38-40 percent which include HDFC Multi Cap Fund, Kotak Multicap Fund, ITI Multi Cap Fund and Nippon India Multi Cap Fund.
Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order. 1.
The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices. Stock prices over shorter time periods are more volatile than stock prices over longer time periods.
Moreover, mutual funds are meant to be evaluated against a benchmark such as a broad index or other yardstick of value - so if the S&P 500 falls 3% in a year and a large-cap mutual fund only falls 2.5%, it can be considered a "good" return, relatively speaking.
SBI Mutual Fund, India's biggest fund house, is backed by the State Bank of India (SBI). The fund house paid a total of Rs 1,675 crore as commission in FY23. In fact, SBI, which also acts as one of the distributors of SBI MF schemes, was the biggest recipient of the commission from the fund houses.
Introduction: My name is Terence Hammes MD, I am a inexpensive, energetic, jolly, faithful, cheerful, proud, rich person who loves writing and wants to share my knowledge and understanding with you.
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