List of Equity Mutual Funds with most consistent performance (Feb 2019)

Here is a list of equity mutual funds with the best performance consistency with respect to returns and risk as on Feb 2019. The results are taken from the freefincal equity mutual fund performance screener published yesterday.

Shortlisting procedure: (1) download screener from above link, (2) enable macros, (3) demand consistent outperformance of the benchmark over at least 70% of the time in terms of return. That is, if we compare 100 return data points of the fund and index over 1,2,3,4 and 5 years, the fund should have got a higher return than the index for at least 70 points. (4) Demand consistent downside protection. That is over 1,2,3,4, and 5 years, the fund should have fallen lesser than the index at least 70% of the observations.   We compute this downside protection only during months when the index return was negative.

List of Equity Mutual Funds with most consistent performance (Feb 2019)

Best Equity mutual fund performers

We shall define all such funds with 70% return outperformance consistency and 70% downside protection consistency over 1,2,3,4 and 5 years as “best performers”. This definition can be varied as per the desire of the user and is solely based on past data. Future performance is unknown and unpredictable. One cannot expect to be invested in such a best performer at all times. Reader can compare this listing with the listing published in Nov 2018

CategoryBenchmarkFund
EQ-ELSSNifty Largemidcap 250 TRIDSP BlackRock Tax Saver Fund
EQ-ELSSNifty Largemidcap 250 TRIIDFC Tax Advantage (ELSS) Fund
EQ-ELSSNifty Largemidcap 250 TRIInvesco India Tax Plan
EQ-ELSSNifty Largemidcap 250 TRIJM Tax Gain Fund (Direct)
EQ-ELSSNifty Largemidcap 250 TRIL&T Tax Advantage Fund
EQ-ELSSNifty Largemidcap 250 TRIQuant Tax Plan-
EQ-L&MCNifty Largemidcap 250 TRIAditya Birla Sun Life Equity Advantage Fund
EQ-L&MCNifty Largemidcap 250 TRIInvesco India Opportunities Fund
EQ-L&MCNifty Largemidcap 250 TRISundaram Large and Mid Cap Fund
EQ-L&MCNifty Largemidcap 250 TRIMirae Asset Emerging Bluechip Fund
EQ-LCNifty 100 TRIMotilal Oswal Focused 25 Fund
EQ-LCNifty 100 TRIICICI Prudential Bluechip Fund
EQ-MCNiftyMidcap150TRIFranklin India Prima Fund
EQ-MCNiftyMidcap150TRIHDFC Mid Cap Opportunities Fund
EQ-MCNiftyMidcap150TRIDSP BlackRock Midcap Fund
EQ-MCNiftyMidcap150TRIInvesco India Midcap Fund
EQ-MCNiftyMidcap150TRISundaram Mid Cap Fund
EQ-MCNiftyMidcap150TRIKotak Emerging Equity Scheme
EQ-MCNiftyMidcap150TRIL&T Mid Cap Fund
EQ-MLCNifty Largemidcap 250 TRIFranklin India Equity Fund
EQ-MLCNifty Largemidcap 250 TRIJM Multicap Fund (Direct)
EQ-MLCNifty Largemidcap 250 TRIAditya Birla Sun Life Equity Fund
EQ-MLCNifty Largemidcap 250 TRIQuant High Yield Equity Plan
EQ-MLCNifty Largemidcap 250 TRIKotak Standard Multicap Fund
EQ-MLCNifty Largemidcap 250 TRIMirae Asset India Equity Fund
EQ-MLCNifty Largemidcap 250 TRIMirae Asset India Equity Fund
EQ-S BANKNSE Bank TRIInvesco India Financial Services Fund
EQ-S BANKNSE Bank TRIReliance Banking Fund   Plan
EQ-S INFRANSE Infra TRIFranklin Build India Fund
EQ-SCNiftySmallCap50-TRIKotak Small Cap
EQ-SCNiftySmallCap50-TRISundaram Small Cap Fund
EQ-SCNiftySmallCap50-TRISundaram Small Cap Fund
EQ-SCNiftySmallCap50-TRIFranklin India Smaller Companies Fund
EQ-SCNiftySmallCap50-TRIDSP BlackRock Small Cap Fund
EQ-SCNiftySmallCap50-TRIHSBC Small Cap Equity Fund Direct
EQ-SCNiftySmallCap50-TRIReliance Small Cap Fund   Plan
EQ-SCNiftySmallCap50-TRISBI Small Cap Fund
EQ-VALNifty Largemidcap 250 TRIL&T India Value Fund
EQ-VALNifty Largemidcap 250 TRIHDFC Capital Builder Value Fund
EQ-VALNifty Largemidcap 250 TRIQuantum Long Term Equity Value Fund
HY-AHNifty 100 TRIPrincipal Hybrid Equity Fund
HY-AHNifty 100 TRITata Retirement Savings Fund Moderate
HY-AHNifty 100 TRIICICI Prudential Equity & Debt Fund
HY-AHNifty 100 TRIDSP BlackRock Equity & Bond Fund
HY-AHNifty 100 TRISBI EQUITY HYBRID FUND
HY-AHNifty 100 TRITata Hybrid Equity Fund
HY-AHNifty 100 TRIHDFC Childrens Gift Fund Investment Plan
HY-AHNifty 100 TRIL&T Hybrid Equity Fund

The number of such funds have increased from 29 (out of 234 funds) in Nov 2018 to 48 (out of 261). There is no change in benchmarks used. Note if we remove the downside filer, there 101 funds with rolling return outperformance consistency 70% or more over 1,2,3,4 and 5 years, that is 39% of the funds.

Funds with upside performance also

Out of these 48, if we additionally add 50% upside performance also, we get the following nine funds. Upside performance means the fund does better than the index when the index moves up.

EQ-L&MCNifty Largemidcap 250 TRIAditya Birla Sun Life Equity Advantage Fund
EQ-L&MCNifty Largemidcap 250 TRIInvesco India Growth Opportunities Fund
EQ-L&MCNifty Largemidcap 250 TRIMirae Asset Emerging Bluechip Fund
EQ-LCNifty 100 TRIMotilal Oswal Focused 25 Fund
EQ-LCNifty 100 TRIICICI Prudential Bluechip Fund
EQ-S BANKNSE Bank TRIInvesco India Financial Services Fund
EQ-VALNifty Largemidcap 250 TRIL&T India Value Fund
HY-AHNifty 100 TRITata Retirement Savings Fund Moderate
HY-AHNifty 100 TRITata Hybrid Equity Fund

The reason we expect only 50% upside performance and not 70% is because of this result: Strange, but true! How mutual funds beat the index!

This month, I have added a new sheet where the performance in the past year can be calculated. Out of the consistent outperformers, Quantum Long Term Equity is the only fund with less than 50% return outperformance in the past year for investment durations of 1,2,3,4 & 5. It is about time its performance improves!! In fact Quantum Tax Saver and Quantum Equity Fund of Fund also make this <50% in the last year list!!

 

This list should be another reminder to young investors that a simple mix of Nifty 50 and Nifty Next 50 Index funds will get the job done. For older investors, there is no need to worry if your fund is not part of this list. Just keep an eye on performance and exit if you think you have waited long enough for the fund manager to beat the index.

 

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Updated: February 20, 2019 — 1:06 pm

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M. Pattabiraman

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9 Comments

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  1. Hi Sir,
    Seems by mistake, 2018 is mentioned instead of 2019. Please change it in line no. 2

  2. Hdfc small cap is not in first 48 list it has good downside returns any reason what went wrong with this find?

  3. In the xls, when I try the macro buttons to filter for the best mutual funds (i.e. 70% return outperformance consistency and 70% downside protection consistency over 1,2,3,4 and 5 years), there is only 21 funds and not 48 as mentioned above

  4. Professor, thanks for the shortlist. However, I was bit perplexed to see PPFAS missing from the list. Is it due to you didn’t consider it to be a multi cap or because of lack of data points (considering this is a newer fund than many others)?

    Thanks and please keep up the good work.

    1. I noticed the same thing. it looks like its because its consistent in downside protection but not 70% outperforming in returns. still i find its good.

      1. Yes, for the time being this and Quantum LTE in my opinion are funds where you can go on with pure SIP without any tactical asset allocation. The fund managers tend to do that for the customer.

  5. I have just started 15 days back in the following funds.
    Tata balanced advantage fund direct growth
    HDFC SMALL CAP DIRECT GROWTH
    ICICI PROD BLUE CHIP DIRECT GROWTH
    SBI NIFTY INNDEX FUND DIRECT GROWTH
    IS IT OK. PLEASE SUGGEST
    SRINIVASAN

  6. Hello sir there is issue with Nifty SmallCap 50 benchmark. The benchmark was only launched on April 01,2016 so 3 and 5 year returns can not be computed using it as returns are back-tested. Please exclude the 3 and 5 year returns.

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