List of Equity Mutual Funds with most consistent performance (Nov 2018)

Here is a list of equity mutual funds with the best performance consistency with respect to returns and risk as on Nov 2018. The results are extracted out of the freefincal equity mutual fund performance screener published yesterday. Two different sets of benchmarks were used to evaluate the funds and therefore two lists are presented below along with two videos from the freefincal youtube channel. Before you head to the list, the focus of this post is to highlight how difficult it is to beat the index.

Best Equity mutual fund performers (normal benchmarks)

The following mutual funds have outperformed the category benchmarks (listed below) in terms of both return and risk. For every 1,2,3,4,5 year period, they have produced higher returns for at least 70% of the rolling durations considered. For the same duration, they have also fallen less than the benchmark with the same 70% consistency.

For example, if there are 100 5-year periods over which we calculate returns and risk, the funds below beat the benchmark at least 70 of those times in terms of returns. Also, if monthly returns are calculated for those 100 periods, the fund has typically fallen less than the benchmark during months the benchmark fell 70percent of the time. That is pretty good!

The bad news, however, is that there are only 29 such funds out of a total sample set of 234 funds! That is the whole point of this post. Even if we demand 70% risk and return outperformance only over five years and this is entirely reasonable, only 106 funds or less than half, qualify. This is the reason I keep saying it is time to switch to index funds (see the video below for another dataset) because even if you choose a consistent outperformer today, there is no guarantee that it will continue to be one tomorrow.

That is why it is so much cleaner, and simpler choose index funds. So these are those 29 funds.

Best Equity Mutual Fund Performers Nov 2018: Better returns & lower risk

Category Benchmark Fund
EQ-ELSS Nifty 200 TRI DSP BlackRock Tax Saver Fund-Direct Plan – Growth
EQ-ELSS Nifty 200 TRI IDFC Tax Advantage (ELSS) Fund-Direct Plan-Growth
EQ-ELSS Nifty 200 TRI Invesco India Tax Plan – Direct Plan – Growth
EQ-ELSS Nifty 200 TRI L&T Tax Advantage Fund-Direct Plan-Growth
EQ-ELSS Nifty 200 TRI Quant Tax Plan-Growth Option-Direct Plan
EQ-L&MC Nifty 200 TRI Mirae Asset Emerging Bluechip Fund-Direct Plan – Growth
EQ-L&MC Nifty 200 TRI Principal Emerging Bluechip Fund-Direct Plan – Growth Option
EQ-LC Nifty 100 TRI ICICI Prudential Bluechip Fund-Direct Plan – Growth
EQ-MC NiftyMidcap150TRI L&T Mid Cap Fund-Direct Plan-Growth
EQ-MLC Nifty 200 TRI Franklin India Focused Equity Fund-Direct – Growth
EQ-MLC Nifty 200 TRI Mirae Asset India Equity Fund-Direct Plan – Growth
EQ-MLC Nifty 200 TRI SBI FOCUSED EQUITY FUND – DIRECT PLAN -GROWTH
EQ-MLC Nifty 200 TRI Mirae Asset India Equity Fund-Direct Plan
EQ-MLC Nifty 200 TRI Kotak Standard Multicap Fund – Growth – Direct
EQ-MLC Nifty 200 TRI Tata Retirement Savings Progressive Plan
EQ-MLC Nifty 200 TRI Quant Growth Plan-GROWTH OPTION-Direct Plan
EQ-S BANK NSE Bank TRI Reliance Banking Fund-Direct Plan Growth Plan – Growth Option
EQ-S INFRA NSE Infra TRI Franklin Build India Fund – Direct – Growth
EQ-SC NiftySmallCap50-TRI Franklin India Smaller Companies Fund – Direct – Growth
EQ-SC NiftySmallCap50-TRI DSP BlackRock Small Cap Fund-Direct Plan – Growth
EQ-SC NiftySmallCap50-TRI HSBC Small Cap Equity Fund-Growth Direct
EQ-SC NiftySmallCap50-TRI Reliance Small Cap Fund-Direct Plan Growth Plan – Growth Option
EQ-VAL Nifty 100 TRI HDFC Capital Builder Value Fund-Direct Plan – Growth Option
EQ-VAL Nifty 100 TRI Templeton India Value Fund – Direct – Growth
EQ-VAL Nifty 100 TRI L&T India Value Fund-Direct Plan-Growth
HY-AH BSE Balanced Index ICICI Prudential Equity & Debt Fund-Direct Plan – Growth
HY-AH BSE Balanced Index Principal Hybrid Equity Fund-Direct Plan – Growth Option
HY-AH BSE Balanced Index Reliance Equity Hybrid Fund-Direct Plan Growth Plan
HY-AH BSE Balanced Index L&T Hybrid Equity Fund-Direct Plan-Growth

Performance of active funds with respect to Nifty Blend Index

The Nifty Blend is a mix of 50% Nifty 50 and 50% Nifty Next 50 and is pretty much equivalent to the Nifty 100 Equal Weight Index. To learn more, see: Can I start Index investing with 50% Nifty 50 and 50% Nifty Next 50? And Will large-cap mutual funds struggle to beat Nifty 100 Equal Weight Index?

The reason I prefer the NIfty blend is that it easier for an investor to choose two index funds to invest in them equally. A total of 178 funds were tested against the Nifty Blend, and if we look for a 70% outperformance over five years, then we are left with only 70 funds. All these 70 funds also have 70% downside risk protection.

Thus even the Nifty Blend is pretty hard to beat.

Performance of Midcap mutual funds

The following 13 (out of 19) midcap funds have outperformed the Nifty Next 50 70% of the time in terms of return and downside over 5 years.

L&T Mid Cap Fund-Direct Plan-Growth
HDFC Mid Cap Opportunities Fund -Direct Plan – Growth Option
DSP BlackRock Midcap Fund – Direct Plan – Growth
Franklin India Prima Fund – Direct – Growth
Sundaram Mid Cap Fund – Direct Plan
Kotak Emerging Equity Scheme – Growth – Direct
BNP Paribas Mid Cap Fund-Direct Plan – Growth Option
SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH
Invesco India Midcap Fund-Direct Plan – Growth Option
UTI Mid Cap Fund-Growth Option- Direct
Axis Midcap Fund-Direct Plan – Growth
Taurus Discovery Fund-Direct Plan-Growth Option
ICICI Prudential MidCap Fund-Direct Plan – Growth

If we use the NIfty MIdcap 150 instead, then only the following 11 (out of 19) funds have managed to beat it 70% of the time over 5Y (returns and downside)

Franklin India Prima Fund – Direct – Growth
HDFC Mid Cap Opportunities Fund-Direct Plan – Growth Option
UTI Mid Cap Fund-Growth Option- Direct
L&T Mid Cap Fund-Direct Plan-Growth
DSP BlackRock Midcap Fund-Direct Plan – Growth
ICICI Prudential MidCap Fund-Direct Plan – Growth
Invesco India Midcap Fund-Direct Plan – Growth Option
SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH
Tata Mid Cap Growth Fund-Direct Plan Growth
Sundaram Mid Cap Fund – Direct Plan
Kotak Emerging Equity Scheme – Growth – Direct

That is good, but we still need to give it a lot more time. For example see the long-term performance at, Why we badly need a Midcap & Smallcap Index Fund – Performance Comparison with Nifty Midcap 100 & Nifty Next 50

Performance of Smallcap mutual funds

The following 7 (out of 11) funds have beat the NIfty Smallcap 50 over five years 70% in terms of returns and downside

Franklin India Smaller Companies Fund – Direct – Growth
Kotak Small Cap
DSP BlackRock Small Cap Fund-Direct Plan – Growth
Sundaram Small Cap Fund – Direct Plan
HSBC Small Cap Equity Fund – Growth Direct
Reliance Small Cap Fund-Direct Plan Growth Plan – Growth Option
Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan

These seven funds have managed to beat the NIfty Next 50 in the same way (70% over 5Y)

Reliance Small Cap Fund-Direct Plan Growth Plan – Growth Option
Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan
DSP BlackRock Small Cap Fund-Direct Plan – Growth
Franklin India Smaller Companies Fund – Direct – Growth
HSBC Small Cap Equity Fund – Growth Direct
Kotak Small Cap
Sundaram Small Cap Fund – Direct Plan

What should I do?

Young earners can invest equally in a Nifty Index fund and Nifty Next 50 Index fund to create the Nifty blend portfolio. They can select a consistent midcap fund and have a small exposure to it for their mental satisfaction as we do not have a midcap index fund. ICICI has a midcap ETF, and this has decent liquidity (but tread carefully) The midcap fund will have some small-cap exposure too (easy to choose one that does), and therefore no separate smallcap is necessary, in my opinion. However, be warned that backtesting over longer durations has shown that it is not easy even for active small and midcap funds to beat the index.

How should 20-something young earners manage their money?

To complement the above video, here are some simple steps for a young earner to being with I shall elaborate this into a post soon

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4 thoughts on “List of Equity Mutual Funds with most consistent performance (Nov 2018)

  1. hi Sir, Thank you writing such informative articles on finance . I do have one feedback related to the way the article appears for desktop browing, the article appears squeezed and is very painful to read. Will be glad if you can help fix

    A regular reader of your blog. Thanks much
    – ghanashyam

  2. Hi Prof, why Invesco contra is not in list of consistent funds despite being most consistent in the value category as per your excel sheet?
    Thanks,
    A Nair

  3. Dear Prof. Pattu and Friends, I am very much interested to use this screener. Unfortunately I am not able to use the macros. No I dont see any errors. Upon using the filters, I am getting Zero results. If anyone already uploaded this sheet in Google drive, please share if possible. Thanks Saravanan

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