8 Top Performing Mutual Funds of 2024 in India Based on 5 Year Rolling Returns

May 23, 2024 Mutual Fund

Over the past few years, a robust broad-based rally in the equity market has resulted in impressive returns for many equity mutual fund schemes. Among diversified equity mutual funds (i.e. excluding sector & thematic funds), 44 schemes have generated returns at a CAGR of 20% or more in the last five years on a rolling returns basis, thus turning out to be top-performing mutual funds of 2024.

Rolling returns are the average annualised returns of mutual fund schemes over specific periods such as 1 year, 3 years, 5 years, 10 years, etc. In other words, a rolling return takes the average of all return points for the chosen period.

The top-performing mutual fund generated a CAGR of 32.9% during this period. Small Cap Mutual Funds topped the list of top-performing funds due to a sharp rally in the small-cap segment in recent years. At the AMC level, Quant Mutual Fund shined with several of its schemes making it to the list of top quartile performers across various sub-categories of equity mutual fund.

[Read: Small Cap Index Near an All-time High: Should You Rejoice or Worry?]

Category average of diversified equity mutual funds in the last five years

Past performance is not an indicator for future returns.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In this article, explore the top-performing mutual funds across various sub-categories of equity mutual funds in the last 5 years.

Top performing mutual fund – ELSS (Tax Saving Mutual Fund) category – Quant ELSS Tax Saver Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in March 2000, Quant ELSS Tax Saver Fund follows an active investment approach whereby it constantly hunts for attractive opportunities across market caps and sectors. This strategy has helped the fund generate remarkable alpha over the benchmark and most of its peers in recent years. In the last five years, Quant ELSS Tax Saver Fund has generated returns at a CAGR of 29.1% on a rolling returns basis, compared to a CAGR of 15.7% generated by its benchmark Nifty 500 – TRI.

Top holdings of Quant ELSS Tax Saver Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Quant ELSS Tax Saver Fund has an allocation of 67.5% in large-cap stocks, 15.2% in mid-cap stocks, and 12% in small-cap stocks. Its top stock holdings comprise mainly of large-cap stocks such as Reliance Industries, Adani Power, JIO Financial Services, Hindalco Industries, and GAIL (India). Sector-wise, the fund held its top exposure in Banking & Finance, followed by Power, Petroleum, Metals, and Infotech, among others.

Top performing mutual fund – Flexi Cap Fund category – Quant Flexi Cap Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Originally launched as a sectoral fund in September 2008, the fund was recategorised and renamed to Quant Flexi Cap Fund in January 2022. The fund follows a proactive approach to identify momentum-driven stocks, which sets it apart from its peers. While the fund’s performance prior to January 2022 is not directly comparable, considering that the fund was not positioned as a Flexi Cap Fund, the fund has made a notable turnaround in recent years, establishing a strong presence. In the last five years, Quant Flexi Cap Fund delivered returns at a CAGR of 26.5% as against the 15.7% CAGR delivered by its benchmark Nifty 500 – TRI.

Top holdings of Quant Flexi Cap Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Quant Flexi Cap Fund held an exposure of 46.7% in large caps, 14.9% in mid caps, 16.7% in small caps, and 11.2% in Derivatives – Futures. Quant Flexi Cap Fund’s top stock holding mainly comprises large-cap stocks, along with a few mid-cap and small-cap stocks and includes names such as Reliance Industries, Kotak Mahindra Bank, JIO Financial Services, TCS, Samvardhana Motherson International, Adani Power, Swan Energy, etc. In terms of sector, Banking & Finance, Petroleum, Power, Chemicals, and Infotech currently form part of the core holdings of Quant Flexi Cap Fund.

Top performing mutual fund – Large & Mid Cap Fund category – Axis Growth Opportunities Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in October 2018, Axis Growth Opportunities Fund invests predominantly in stocks of large-cap and mid-cap companies, investing a minimum of 35% in each. It aims to identify market leaders in emerging industries or higher growth companies in established businesses. What differentiates the fund from its peers is that it offers international diversification by investing in stocks of developed and emerging markets. In the last five years, Axis Growth Opportunities Fund’s returns appreciated by 22.1% CAGR on a rolling returns basis compared to returns of 17.7% in its benchmark Nifty LargeMidcap 250 – TRI.

Top holdings of Axis Growth Opportunities Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Axis Growth Opportunities Fund held an allocation of 41.8% in large caps, 35.3% in mid caps, about 5% in small caps, and 16% in overseas equities, mutual fund units, ADRs & GDRs. Its top stock holdings comprise a mix of mid-cap and large-cap stocks such as Torrent Power, Sundaram Finance, ICICI Bank, Cholamandalam Investment & Finance Company, and CG Power and Industrial Solutions, among others. Its sector allocation is diversified across Banking & Finance, Auto & Auto Ancillaries, Healthcare, Infotech, and Power, among others.

Top performing mutual fund – Large Cap Fund category – Mahindra Manulife Large Cap Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in March 2019, Mahindra Manulife Large Cap Fund focuses on identifying industry leaders and businesses that have the advantage of economies of scale. It follows the top-down approach for sector allocation and the bottom-up approach for stock selection within the sector. While Mahindra Manulife Large Cap Fund maintains its core holdings with a long-term view, it occasionally churns a portion of its portfolio to capitalise on market opportunities. The fund’s five-year rolling return stands at 17.4% CAGR compared to 14.3% in its benchmark Nifty 100 – TRI.

Top holdings of Mahindra Manulife Large Cap Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Mahindra Manulife Large Cap Fund allocated 88.4% of its assets in large caps, 4.9% in mid caps, and 3.1% in small caps. It held its top holdings in popular large-cap names such as HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS, among others. The Banking & Finance sector dominated the fund’s portfolio, while it also held significant exposure in Infotech, Petroleum, Consumption, and Auto & Auto Ancillaries.

Top performing mutual fund – Mid Cap Fund category – Quant Mid Cap Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in February 2001, Quant Mid Cap Fund is an agile scheme in the Mid Cap Fund category. The fund is quick in its approach to shifting allocation between market caps and sectors, though it maintains a mid-cap biased portfolio. Accordingly, the fund has recorded a high portfolio churn of 100-340% in the last one year. Despite its aggressive approach, Quant Midcap Fund has proved its ability to limit downside risk during depressed market conditions an rewarded investors over complete market cycle. In the last five years, Quant Midcap Fund has rewarded investors with high alpha with returns of 27.9% CAGR on a rolling returns basis against 21% CAGR registered by its benchmark Nifty Midcap 150 – TRI.

Top holdings of Quant Mid Cap Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Quant Mid Cap Fund allocated 67.7% in large caps, 23.4% in large caps, and 6.3% in Derivatives – Futures. Reliance Industries is currently the fund’s top stock holding, followed by mid-cap names such as Aurobindo Pharma, Linde India, Container Corporation of India, and Samvardhana Motherson International. In terms of sector, it currently favours Banking & Finance, Healthcare, Petroleum, Auto & Auto Ancillaries, Chemicals, and Telecom, among others.

Top performing mutual fund – Multi Cap Fund category – Quant Active Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in March 2001, Quant Active Fund is a Multi Cap Fund that maintains a well-balanced exposure across market caps. The fund decides the stock, sector, and market allocation depending on the market outlook, irrespective of their weightage in the benchmark index. The fund’s strategy of timely identifying attractive-looking stocks and sectors and taking higher exposure in them has worked extremely well in its favour in the last few years, which has helped it record extraordinary growth in recent years. In the last five years, Quant Active Fund has registered growth at a CAGR of 26.5%, compared to a growth of 15.7% in the Nifty 500 – TRI index.

Top holdings of Quant Active Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, Quant Active Fund invested 37.7% in large-cap stocks, 24.8% in mid caps, 25.5% in small caps, and 7.7% in Derivatives – Futures. Its top stock allocation comprises a mix of large-cap, mid-cap, and small-cap names such as Reliance Industries, JIO Financial Services, IRB Infrastructure Developers, Aurobindo Pharma, and Punjab National Bank. The fund’s current top sector exposure includes Banking & Finance, Petroleum, Engineering, Metals, and Healthcare.

Top performing mutual fund – Small Cap Fund category – Bank of India Small Cap Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in December 2018, Bank of India Small Cap Fund aims to invest in small-cap companies in growth-oriented small-cap companies having sustainable business models. It adopts a blend of the top-down and bottom-up approach to discover winning stocks. While selecting stocks, BOI Small Cap Fund looks for sustainable earnings growth, sound balance sheet, ROIC, and quality of management. In the last five years, BOI Small Cap Fund’s returns appreciated at 32.9% based on rolling returns, which is currently the highest among diversified equity mutual funds and outpaces the benchmark Nifty Smallcap 250 – TRI’s returns by a wide margin of around 13 percentage points.

Top holdings of Bank of India Small Cap Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, BOI Small Cap Fund allocated 79.5% in small caps, 10.8% in mid caps, and 6.5% in large caps. It has restricted allocation in each stock to under 3% and currently has higher allocation to BSE, Castrol India, Avenue Supermarts, Radico Khaitan, and KSB. Its top sectoral exposure includes Banking & Finance, Auto & Auto Ancillaries, Healthcare, Engineering, and Electricals.

Top performing mutual fund – Value Fund category – JM Value Fund

Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of May 20, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

Launched in June 1997, JM Value Fund aims to invest in a well-diversified portfolio of undervalued securities by using a mix of the top-down and bottom-up approaches. It primarily focuses on stocks with a structural growth opportunity but may be beaten down due to transitory issues. These stocks have the potential to generate superior returns from potential re-rating and earnings growth. In the last five years, JM Value Fund has generated returns at a CAGR of 20.3% compared to a growth at 15.9% for a simultaneous investment in its benchmark.

Top holdings of JM Value Fund

Portfolio data as of April 30, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of April 30, 2024, JM Value Fund invested 46.1% of its assets in small-cap stocks, 31.4% in large caps, and about 17% in mid caps. Its top stock allocation predominantly includes large-cap names such as ICICI Bank, HDFC Bank, L&T, and Mahindra & Mahindra. The fund’s portfolio is skewed towards the Banking & Finance sector, along with diversification to Auto & Auto Ancillaries, Infrastructure, Healthcare, Consumer Durables, and Consumption, among others.

The Bottom Line…

Equity mutual funds have the potential to reap high returns for investors. However, it is important to note that the past performance of mutual funds may or may not sustain in the future. Therefore, instead of relying solely on past performance, when shortlisting schemes for the portfolio one should undertake a holistic assessment of schemes based on various quantitative and qualitative parameters.

Mutual fund investments should always be made as per one’s financial objective, risk appetite, and investment horizon. If you are unsure which type of mutual fund is suitable for your investment needs, it is better to consult a SEBI-registered investment adviser.

Watch this video to find out the 5 best mutual fund types for long-term investment:https://www.youtube.com/embed/LJeYkkE33A8?si=BE-hdc2wcm8NC9oY 

Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.

This article first appeared on PersonalFN here