Last Updated on December 29, 2021 at 11:56 am
Here is a list of mutual funds that have outperformed Nifty 200 & Nifty Midcap 150 Total Return Indices as on October 2018. The data is sourced from the October 2018 Equity Mutual Fund Performance Screener. The Nifty 200 is a common benchmark in the ELSS, large and midcap, and multi-cap categories. Nifty 200 consists of all the stocks in NIFTY 100 and NIFTY Full Midcap 100. The Nifty Midcap 150 has 150 stocks that have lower market capitalization than the Nifty 100 (top 100). The total returns indices (dividends are treated as reinvested) as used for comparison. Let us find out how easy or hard these indices are to beat.
We define the demand the following as “outperformance”. For every 3,4,5 year period considered between Jan 1st 2013 to Oct 15th 2018, the fund should have beat the benchmark index at least 70% of the time. For example, if there are 1000 3-year durations considered, the fund should have had a higher return for at least 700 durations.
In addition to the above reward-outperformance, we shall define a risk-outperformance. For each of those 3, 4,5 year periods, the fund should have registered a loss that is lower than the benchmarks at least 70% of the time. In other words, if over a single 3Y period, the benchmark registered a loss of say 20%, the fund should have registered a loss less than 20%. This is known as downside protection. The fund should have exhibited such downside protection at least 70% of the 3,4,5 year durations considered.
While the return outperformance is measured point to point (start date to end date), the risk outperformance is measured monthly between the start and end dates. This is because returns are in hindsight and risk is in real-time.
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List of funds that have outperformed Nifty 200 TRI
A total of 86 funds were considered from the ELSS, Large and Midcap and Multicap categories. Only 40 out of those 86 came out as “performers” as defined above! This is quite poor as the chances of your fund beating Nifty 200 essential becomes a coin-toss: Heads you lose, tails you lose. We earlier saw that the situation is similar with Nifty 100: Will large cap mutual funds struggle to beat Nifty 100 Equal Weight Index?
Thus, it is time to move to index funds (stay away from ETFs). At least young investors with small portfolios should seriously consider this. Ravikiran Suryanarayana suggested a portfolio of 50% Nifty 50 and 50% nifty next 50 as a Nifty 100 or Nifty 200 index fund is not available. I will backtest this 50:50 portfolio rigorously in the next post.
- 17 out of 28 ELSS funds were performers
- 8 out of Large and Midcap funds were performers
- 15 out of 39 multicap funds were performers.
Here is the full list of outperformers
| Category | Fund |
| EQ-ELSS | Quantum Tax Saving Fund – Direct Plan Growth Option |
| EQ-ELSS | HDFC TaxSaver -Direct Plan – Growth Option |
| EQ-ELSS | BOI AXA Tax Advantage Direct Plan Growth |
| EQ-ELSS | Aditya Birla Sun Life Tax Relief ’96 – Growth – Direct Plan |
| EQ-ELSS | Axis Long Term Equity Fund – Direct Plan – Growth Option |
| EQ-ELSS | BNP Paribas Long Term Equity Fund – Direct Plan – Growth Option |
| EQ-ELSS | DSP BlackRock Tax Saver Fund – Direct Plan – Growth |
| EQ-ELSS | IDFC Tax Advantage (ELSS) Fund-Direct Plan-Growth |
| EQ-ELSS | Invesco India Tax Plan – Direct Plan – Growth |
| EQ-ELSS | JM Tax Gain Fund (Direct) – Growth Option |
| EQ-ELSS | L&T Tax Advantage Fund-Direct Plan-Growth |
| EQ-ELSS | Taurus Tax Shield-Direct Plan-Growth Option |
| EQ-ELSS | UTI – Long Term Equity Fund (Tax Saving) – Direct Plan – Growth Option |
| EQ-ELSS | LIC MF Tax Plan-Direct Plan-Growth |
| EQ-ELSS | Quant Tax Plan-Growth Option-Direct Plan |
| EQ-ELSS | Edelweiss Long Term Equity Fund (Tax Savings) – Direct Plan-Growth Option |
| EQ-ELSS | IDBI Equity Advantage Fund – Growth Direct |
| EQ-L&MC | Aditya Birla Sun Life Equity Advantage Fund – Growth – Direct Plan |
| EQ-L&MC | Canara Robeco Emerging Equities-Direct Plan-Growth Option |
| EQ-L&MC | ICICI Prudential Large & Mid Cap Fund – Direct Plan – Growth |
| EQ-L&MC | IDFC Core Equity Fund-Direct Plan-Growth |
| EQ-L&MC | Invesco India Growth Opportunities Fund – Direct Plan – Growth |
| EQ-L&MC | Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth |
| EQ-L&MC | Principal Emerging Bluechip Fund – Direct Plan – Growth Option |
| EQ-L&MC | Tata Large & MId Cap Fund -Direct Plan Growth |
| EQ-MLC | Franklin India Focused Equity Fund – Direct – Growth |
| EQ-MLC | BNP Paribas MULTI CAP Fund – Direct Plan – Growth Option |
| EQ-MLC | DSP BlackRock Focus Fund – Direct Plan – Growth |
| EQ-MLC | IDFC Multi Cap Fund-Direct Plan-Growth |
| EQ-MLC | JM Multicap Fund (Direct) – Growth Option |
| EQ-MLC | L&T Equity Fund-Direct Plan-Growth |
| EQ-MLC | Mirae Asset India Equity Fund – Direct Plan – Growth |
| EQ-MLC | Principal Multi Cap Growth Fund-Direct Plan – Growth Option |
| EQ-MLC | Reliance Focused Equity Fund – Direct Plan Growth Plan – Growth Option |
| EQ-MLC | SBI FOCUSED EQUITY FUND – DIRECT PLAN -GROWTH |
| EQ-MLC | Kotak Standard Multicap Fund – Growth – Direct |
| EQ-MLC | Tata Retirement Savings Progressive Plan |
| EQ-MLC | Quant Growth Plan-GROWTH OPTION-Direct Plan |
| EQ-MLC | Quant High Yield Equity Plan – Growth Option-Direct Plan |
| EQ-MLC | Parag Parikh Long Term Equity Fund – Direct Plan – Growth |
Here is the list of non-performers wrt Nifty 200 TRI
| Category | Fund |
| EQ-ELSS | Principal Tax Savings Fund |
| EQ-ELSS | Franklin India TAXSHIELD – Direct – Growth |
| EQ-ELSS | Canara Robeco Equity Taxsaver Fund – Direct Plan – Growth Option |
| EQ-ELSS | HSBC Tax Saver Equity Fund – Growth Direct |
| EQ-ELSS | ICICI Prudential Long Term Equity Fund (Tax Saving) – Direct Plan – Growth |
| EQ-ELSS | Kotak Tax Saver-Scheme-Growth – Direct |
| EQ-ELSS | Reliance Tax Saver Fund – Direct Plan Growth Plan – Growth Option |
| EQ-ELSS | SBI MAGNUM TAXGAIN SCHEME 1993 – DIRECT PLAN -GROWTH |
| EQ-ELSS | Union Tax Saver Scheme – Direct Plan – Growth Option |
| EQ-ELSS | Tata India Tax Savings Fund-Growth-Direct Plan |
| EQ-ELSS | Baroda Pioneer ELSS 96 Plan B(Direct) -Growth Option |
| EQ-L&MC | Franklin India Equity Advantage Fund – Direct – Growth |
| EQ-L&MC | BOI AXA Large & Mid Cap Equity Fund Direct Plan-Growth |
| EQ-L&MC | DSP BlackRock Equity Opportunities Fund – Direct Plan – Growth |
| EQ-L&MC | Kotak Equity Opportunities Fund – Growth – Direct |
| EQ-L&MC | L&T Large and Midcap Fund-Direct Plan-Growth |
| EQ-L&MC | Reliance Vision Fund – Direct Plan Growth Plan – Growth Option |
| EQ-L&MC | SBI LARGE & MIDCAP FUND -DIRECT PLAN -Growth |
| EQ-L&MC | UTI – Core Equity Fund – Direct Plan – Growth Option |
| EQ-L&MC | HDFC Growth Opportunities Fund – Direct Growth Plan |
| EQ-L&MC | LIC MF Large & Mid Cap Fund-Direct Plan-Growth |
| EQ-L&MC | Edelweiss Large & Mid Cap Fund – Direct Plan – Growth Option |
| EQ-MLC | Quantum Equity Fund of Funds – Direct Plan Growth Option |
| EQ-MLC | Franklin India Equity Fund – Direct – Growth |
| EQ-MLC | HDFC Equity Fund -Direct Plan – Growth Option |
| EQ-MLC | HDFC Focused 30 Fund -Direct Plan – Growth Option |
| EQ-MLC | BARODA PIONEER MULTI CAP FUND – Plan B (Direct) – Growth Option |
| EQ-MLC | Canara Robeco Equity Diversified Fund-Direct Plan -Growth Option |
| EQ-MLC | DSP BlackRock Equity Fund – Direct Plan – Growth |
| EQ-MLC | HSBC Multi Cap Equity Fund – Growth Direct |
| EQ-MLC | ICICI Prudential Multicap Fund – Direct Plan – Growth |
| EQ-MLC | IDFC Focused Equity Fund-Direct Plan-Growth |
| EQ-MLC | Principal Focused Multicap Fund- Direct Plan – Growth Option |
| EQ-MLC | Reliance Multi Cap Fund – Direct Plan Growth Plan – Growth Option |
| EQ-MLC | Union Equity Fund – Direct Plan – Growth Option |
| EQ-MLC | Taurus Starshare-Direct Plan-Growth Option |
| EQ-MLC | UTI Children’s Career -Investment Plan |
| EQ-MLC | UTI equity |
| EQ-MLC | LIC MF Multicap Fund-Direct Plan-Growth |
| EQ-MLC | ICICI Prudential Focused Equity Fund – Direct Plan – Growth |
| EQ-MLC | Motilal Oswal Multicap 35 |
| EQ-MLC | IDBI DIVERSIFIED EQUITY FUND Growth Direct |
| EQ-MLC | IIFL Focused Equity Fund-Direct Plan-Growth |
| EQ-MLC | Reliance Retirement Fund- Wealth Creation Scheme- Direct Plan- Growth Plan – Growth Option |
| EQ-MLC | DHFL Pramerica Diversified Equity Fund – Direct Plan – Growth Option |
| EQ-MLC | Edelweiss Multi-Cap Fund – Direct Plan – Growth Option |
List of outperformers wrt Nifty Midcap 150 TRI
- Only two out of 18 midcap funds tested were outperformers. This reiterates what we found earlier: Why we badly need a Midcap & Smallcap Index Fund :Performance Comparison with Nifty Midcap 100 & Nifty Next 50
- 8 out of 10 smallcap funds were outperformers (perhaps because I used a midcap index!)
- overall 10 out of 18 funds were outperformers.
| Category | Fund |
| EQ-MC | L&T Mid Cap Fund-Direct Plan-Growth |
| EQ-MC | Kotak Emerging Equity Scheme – Growth – Direct |
| EQ-SC | Franklin India Smaller Companies Fund – Direct – Growth |
| EQ-SC | DSP BlackRock Small Cap Fund – Direct Plan – Growth |
| EQ-SC | Kotak Small Cap |
| EQ-SC | Reliance Small Cap Fund – Direct Plan Growth Plan – Growth Option |
| EQ-SC | Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan |
| EQ-SC | HDFC Small Cap Fund – Direct Growth Plan |
| EQ-SC | L&T Emerging Businesses Fund – Direct Plan – Growth |
| EQ-SC | SBI Small Cap Fund – Direct Plan – Growth |
List of non-performers wrt Nifty Midcap 150 TRI
| Category | Fund |
| EQ-MC | Franklin India Prima Fund – Direct – Growth |
| EQ-MC | HDFC Mid Cap Opportunities Fund -Direct Plan – Growth Option |
| EQ-MC | Aditya Birla Sun Life Midcap Fund – Growth – Direct Plan |
| EQ-MC | Axis Midcap Fund – Direct Plan – Growth |
| EQ-MC | BNP Paribas Mid Cap Fund – Direct Plan – Growth Option |
| EQ-MC | DSP BlackRock Midcap Fund – Direct Plan – Growth |
| EQ-MC | ICICI Prudential MidCap Fund – Direct Plan – Growth |
| EQ-MC | Invesco India Midcap Fund – Direct Plan – Growth Option |
| EQ-MC | Reliance Growth Fund – Direct Plan Growth Plan – Growth Option |
| EQ-MC | SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH |
| EQ-MC | Tata Mid Cap Growth Fund – Direct Plan Growth |
| EQ-MC | Taurus Discovery Fund-Direct Plan-Growth Option |
| EQ-MC | UTI Mid Cap Fund-Growth Option- Direct |
| EQ-MC | MOF30-Direct Plan-Growth Option |
| EQ-MC | DHFL Pramerica Midcap Opportunities Fund – Direct Plan – Growth Option |
| EQ-MC | Edelweiss Mid Cap Fund – Direct Plan – Growth Option |
| EQ-SC | HSBC Small Cap Equity Fund – Growth Direct |
| EQ-SC | Union Small Cap Fund – Direct Plan – Growth Option |
Summary
It is now becoming increasingly clear that active mutual funds (remember only direct plans were tested. If they were regular, it would be even worse) are finding it difficult to beat even broad market indices and indexing is the way forward. However, as of now, practical options are index funds based on Nifty 50 or Sensex, Nifty 50 equal weight, Nifty 100 Equal-weight.
If you are worried about the N100 Equal weight index funds from Sundaram and Principal as they have low AUM, a mix of Nifty 50 and Nifty Next 50 as per your risk appetite and goal requirements will keep volatility at with low costs. Else you can use aggressive hybrid funds or dynamic asset allocation funds where the fund manager fee is a lot more justified.
If you are interested you can explore the
- List of Index Mutual Funds and ETFs in India: What to choose and what to avoid
- Watch my talk on index investing: Can we get higher returns with lower risk?
Download the October 2018 Equity Mutual Fund Performance Screener.
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