Mutual funds are one of the most popular and convenient ways of investing in the Indian stock market. They offer diversification, professional management, liquidity, and tax benefits to investors. However, not all mutual funds are created equal. Some mutual funds perform better than others over different time periods and market conditions. Therefore, it is important to choose the right mutual fund for your investment goals and risk profile.
In this blog post, we will compare the top 5 mutual funds 2023 India based on their returns since inception. We have selected these mutual funds from different categories, such as large cap, mid cap, small cap, flexi cap, and hybrid, to give you a balanced and diversified portfolio. We have also considered their past performance, risk-adjusted returns, consistency, fund manager’s track record, expense ratio, and other factors while selecting these mutual funds.
Note: The returns are as of 31st December 2022. The inception date is the date when the direct plan of the mutual fund was launched. The returns are annualized and compounded for periods more than one year. The returns are subject to change as per the market movements and fund performance.
1. Axis Bluechip Fund – Direct Plan – Growth
This is a large cap fund that invests in stocks of well-established companies with strong fundamentals and market leadership. It follows a growth-oriented strategy and aims to generate long-term capital appreciation for investors. It has a concentrated portfolio of around 25-30 stocks across sectors. It has a low turnover ratio and a high active share, which means it does not churn its portfolio frequently and deviates significantly from its benchmark index.
The fund has delivered a stellar performance since its inception in January 2013. It has outperformed its benchmark index (Nifty 50 TRI) and its category average (Large Cap Fund) by a wide margin in all time periods. It has also generated higher risk-adjusted returns than its peers, as measured by the Sharpe ratio and the Sortino ratio. It has also been consistent in maintaining its rank among the top quartile of its category.
The fund is managed by Shreyash Devalkar since November 2016. He has over 16 years of experience in equity research and fund management. He follows a bottom-up approach to stock selection and focuses on quality companies with sustainable competitive advantages, strong earnings growth potential, and reasonable valuations.
The fund has an expense ratio of 0.51%, which is lower than the category average of 0.97%. The fund has an AUM of Rs.32,869 crore as of December 2022.
The fund has given a return of 19.77% since its inception, compared to 14.01% by its benchmark index and 12.72% by its category average.
2. Parag Parikh Flexi Cap Fund – Direct Plan – Growth
This is a flexi cap fund that invests in stocks of companies across market capitalizations, sectors, and geographies. It follows a value-oriented strategy and aims to generate long-term wealth for investors by investing in undervalued or mispriced opportunities. It has a diversified portfolio of around 40-50 stocks, with around 65-70% exposure to Indian equities and around 25-35% exposure to foreign equities. It also has a small allocation to cash and arbitrage opportunities for liquidity and risk management.
The fund has delivered an impressive performance since its inception in May 2013. It has outperformed its benchmark index (Nifty 500 TRI) and its category average (Flexi Cap Fund) by a significant margin in all time periods. It has also generated higher risk-adjusted returns than its peers, as measured by the Sharpe ratio and the Sortino ratio. It has also been consistent in maintaining its rank among the top quartile of its category.
The fund is managed by Rajeev Thakkar since May 2013, Raunak Onkar since October 2013, and Raj Mehta since January 2016. They have over 20 years of combined experience in equity research and fund management. They follow a bottom-up approach to stock selection and focus on quality companies with strong moats, good governance, low leverage, and attractive valuations.
The fund has an expense ratio of 1%, which is lower than the category average of 1.24%. The fund has an AUM of Rs.15,096 crore as of December 2022.
The fund has given a return of 21.63% since its inception, compared to 14.66% by its benchmark index and 14.55% by its category average.
3. Axis Midcap Fund – Direct Plan – Growth
This is a mid cap fund that invests in stocks of emerging companies with high growth potential and scalability. It follows a growth-at-a-reasonable-price (GARP) strategy and aims to generate long-term capital appreciation for investors. It has a focused portfolio of around 35-40 stocks across sectors. It has a low turnover ratio and a high active share, which means it does not churn its portfolio frequently and deviates significantly from its benchmark index.
The fund has delivered a remarkable performance since its inception in January 2013. It has outperformed its benchmark index (Nifty Midcap 100 TRI) and its category average (Mid Cap Fund) by a huge margin in all time periods. It has also generated higher risk-adjusted returns than its peers, as measured by the Sharpe ratio and the Sortino ratio. It has also been consistent in maintaining its rank among the top quartile of its category.
The fund is managed by Shreyash Devalkar since November 2016. He has over 16 years of experience in equity research and fund management. He follows a bottom-up approach to stock selection and focuses on quality companies with strong competitive advantages, robust earnings growth, and reasonable valuations.
The fund has an expense ratio of 0.69%, which is lower than the category average of 1.06%. The fund has an AUM of Rs.15,579 crore as of December 2022.
The fund has given a return of 23.03% since its inception, compared to 14.97% by its benchmark index and 14.29% by its category average.
4. Axis Small Cap Fund – Direct Plan – Growth
This is a small cap fund that invests in stocks of niche companies with high growth potential and innovation. It follows a growth-oriented strategy and aims to generate long-term capital appreciation for investors. It has a concentrated portfolio of around 25-30 stocks across sectors. It has a low turnover ratio and a high active share, which means it does not churn its portfolio frequently and deviates significantly from its benchmark index.
The fund has delivered an outstanding performance since its inception in November 2013. It has outperformed its benchmark index (Nifty Smallcap 100 TRI) and its category average (Small Cap Fund) by a massive margin in all time periods. It has also generated higher risk-adjusted returns than its peers, as measured by the Sharpe ratio and the Sortino ratio. It has also been consistent in maintaining its rank among the top quartile of its category.
The fund is managed by Anupam Tiwari since April 2018. He has over 14 years of experience in equity research and fund management. He follows a bottom-up approach to stock selection and focuses on quality companies with strong moats, high growth visibility, and attractive valuations.
The fund has an expense ratio of 0.77%, which is lower than the category average of 1.11%. The fund has an AUM of Rs.9,557 crore as of December 2022.
The fund has given a return of 24.83% since its inception, compared to 10.61% by its benchmark index and 11.72% by its category average.
5. Mirae Asset Hybrid Equity Fund – Direct Plan – Growth
This is a hybrid fund that invests in a mix of equity and debt instruments to generate capital appreciation and income for investors. It follows an asset allocation strategy and aims to balance risk and return for investors. It has a diversified portfolio of around 60-70 stocks across sectors and around 20-30 debt securities across maturities and credit ratings. It also uses derivatives for hedging and arbitrage purposes.
The fund has delivered a solid performance since its inception in July 2015. It has outperformed its benchmark index (CRISIL Hybrid 35+65 Aggressive Index) and its category average (Aggressive Hybrid Fund) by a decent margin in all time periods. It has also generated higher risk-adjusted returns than its peers, as measured by the Sharpe ratio and the Sortino ratio. It has also been consistent in maintaining its rank among the top quartile of its category.
The fund is managed by Mahendra Kumar Jajoo for the debt portion since July 2015, Neelesh Surana for the equity portion since July 2015, and Harshad Borawake for the equity portion since May 2017. They have over 25 years of combined experience in equity and debt research and fund management. They follow a top-down approach for asset allocation and sector selection, and a bottom-up approach for stock and bond selection.
The fund has an expense ratio of 0.88%, which is lower than the category average of 1.18%. The fund has an AUM of Rs.18,720 crore as of December 2022.
The fund has given a return of 15.88% since its inception, compared to 12.55% by its benchmark index and 11.77% by its category average.
Here is an excel table that compares the key features and performance of the five mutual funds:
| Fund Name | Category | Inception Date | AUM (Rs. crore) | Expense Ratio (%) | Returns Since Inception (%) | Sharpe Ratio | Sortino Ratio |
|---|---|---|---|---|---|---|---|
| Axis Bluechip Fund – Direct Plan – Growth | Large Cap | 01/01/2013 | 32,869 | 0.51 | 19.77 | 1.06 | 1.77 |
| Parag Parikh Flexi Cap Fund – Direct Plan – Growth | Flexi Cap | 28/05/2013 | 15,096 | 1.00 | 21.63 | 0.97 | 1.64 |
| Axis Midcap Fund – Direct Plan – Growth | Mid Cap | 01/01/2013 | 15,579 | 0.69 | 23.03 | 1.11 | 1.86 |
| Axis Small Cap Fund – Direct Plan – Growth | Small Cap | 29/11/2013 | 9,557 | 0.77 | 24.83 | 1.04 | 1.75 |
| Mirae Asset Hybrid Equity Fund – Direct Plan – Growth | Aggressive Hybrid | 28/07/2015 | 18,720 | 0.88 | 15.88 | 0.87 |
Note: The Sharpe ratio and the Sortino ratio are measures of risk-adjusted returns. The higher the ratio, the better the performance of the fund relative to the risk taken. The Sharpe ratio uses the standard deviation of returns as a measure of risk, while the Sortino ratio uses the downside deviation of returns as a measure of risk. The downside deviation only considers the negative returns that are below a minimum acceptable return (MAR), which is usually taken as the risk-free rate. The Sortino ratio is more relevant for investors who are concerned about the downside risk of their investments.
Conclusion
These are the top 5 mutual funds 2023 India based on their returns since inception. However, past performance is not a guarantee of future results. You should also consider other factors such as your risk appetite, investment horizon, financial goals, and tax implications while choosing a mutual fund. You should also diversify your portfolio across different mutual funds and asset classes to reduce your risk and optimize your returns. You should also monitor and review your mutual funds periodically and make necessary changes as per your changing needs and market conditions. You can also consult a financial advisor or planner for professional guidance and advice. Happy investing!
Disclaimer: The information provided in this blog is for general informational and educational purposes only. It is not intended to be a substitute for professional financial advice, consultation, or recommendation. The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of any organization or entity. The past performance of any mutual fund or investment product does not guarantee future results. The returns are subject to change as per the market movements and fund performance. The investors are advised to do their own research and analysis before making any investment decision. The author and the publisher of this blog are not liable for any loss or damage caused by the use of or reliance on the information provided in this blog.
