Here are 18 mutual funds with better than index return & lower than index risk over the last 1,2,3,4 and 5 years! I have calculated this with trailing returns and trailing standard deviation (a measure of volatility) using the freefincal equity mutual fund consistency screener. This is an alternative way of short-listing mutual funds. However, it may not be as rigorous as this shortlist made with rolling returns and downside protection: List of Equity Mutual Funds with most consistent performance (Feb 2019).
How the list was prepared
Compute fund return and index return over the last 1,2,3,4 and 5 years
Compute fund and index standard deviation over the last 1,2,3,4 and 5 years
Find fund return minus index return over each of these periods
Fund fund standard deviation minus index standard deviation over each of these periods
Plot (fund return minus index return) in the vertical axis versus (fund standard deviation minus index standard deviation) in the vertical axis
This will provide four sections as shown below and we shortlist funds that fall in the upper left quadrant (yellow text) to choose funds with lower than index risk and higher than index returns over 1,2,3,4 and 5 years
Relative Risk vs Reward of Mutual Funds: three years
We consider 268 equity mutual funds. To get a full list of the funds and the benchmarks used, consult the freefincal equity mutual fund consistency screener.
We shortlist funds within the white rectangle over 1,2,3,4 and 5 years.
Relative Risk vs Reward of Mutual Funds: five years
List of 18 mutual funds with better than index return & lower than index risk!
So these are funds that were always found in the upper left quadrant.Notice the prominent absence of large cap funds and thinly populated other categories! Only Small cap funds are well represented perhaps because it is easy to stay less volatile than the index and that alone can beat the index during downturns.
Category
Benchmark
Fund
EQ-ELSS
Nifty Largemidcap 250 TRI
Invesco India Tax
EQ-L&MC
Nifty Largemidcap 250 TRI
Invesco India Opportunities Fund
EQ-MC
NiftyMidcap150TRI
Axis Midcap Fund
EQ-MC
NiftyMidcap150TRI
Invesco India Midcap Fund
EQ-MLC
Nifty Largemidcap 250 TRI
Kotak Standard Multicap Fund
EQ-MLC
Nifty Largemidcap 250 TRI
Mirae Asset India Equity Fund
EQ-S INFRA
NSE Infra TRI
Franklin Build India Fund
EQ-S INFRA
NSE Infra TRI
LIC MF Infrastructure Fund
EQ-S INFRA
NSE Infra TRI
Taurus Infrastructure Fund
EQ-SC
NiftySmallCap50-TRI
Aditya Birla Sun Life Small Cap Fund
EQ-SC
NiftySmallCap50-TRI
DSP BlackRock Small Cap Fund
EQ-SC
NiftySmallCap50-TRI
Franklin India Smaller Companies Fund
EQ-SC
NiftySmallCap50-TRI
HSBC Small Cap Equity Fund
EQ-SC
NiftySmallCap50-TRI
ICICI Prudential Smallcap Fund
EQ-SC
NiftySmallCap50-TRI
Kotak Small Cap
EQ-SC
NiftySmallCap50-TRI
Reliance Small Cap Fund
EQ-SC
NiftySmallCap50-TRI
SBI Small Cap Fund
EQ-SC
NiftySmallCap50-TRI
Sundaram Small Cap Fund
How to use this information
This is yet another way to shortlist mutual funds – another blind man touching the elephant. They are certainly good funds. Are they consistently good funds? To answer this, I will find a way to including rolling returns and risk study into this. The shortlist should be used only if you understand how it was calculated and how it differs from downside protection. For the moment, the non-small cap funds in this list can look at more closely by readers. Let me know your thoughts on this method -which is well known by analysts, you can get this information for each fund at Morningstar India. From the next edition of the freefincal screener, the full data will be available each month.
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitteror Linkedinor YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!⇐More than 1000 investors and advisors use this!Our flagship course!Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions!⇐More than 2800 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.Our new course!Increase your income by getting people to pay for your skills!⇐More than 675 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos! My new book for kids: “Chinchu gets a superpower!” is now available!Both boy and girl version covers of Chinchu gets a superpower. Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!Feedback from a young reader after reading Chinchu gets a Superpower!
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Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.
Published by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)