A reader asked, “If we compare the performance of actively managed mutual funds across categories, how many of them have outperformed the Nifty 50 consistently?”
Readers may be aware that we publish a monthly equity mutual funds performance consistency screener where each category has its own relevant benchmark. Let us now determine how many funds qualify if we compare them with Nifty 50. We shall consider 406 equity mutual funds (including aggressive hybrid funds) across 13 categories.
Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations are here: Handpicked List of Mutual Funds (PlumbLine).
We shall use the Rolling return outperformance consistency. the fund returns are compared with category benchmark returns over every possible 3Y,4Y, and 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%. We shall set 500 rolling return data points as the minimum eligibility criterion. The results are as of 9th Sep 2022.
Five years:
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- No of funds with > 500 rolling return data points: 260
- No of funds with 70% or more rolling return outperformance consistency: 86
Four years:
- No of funds with > 500 rolling return data points: 273
- No of funds with 70% or more rolling return outperformance consistency: 60
Three years:
- No of funds with > 500 rolling return data points: 283
- No of funds with 70% or more rolling return outperformance consistency: 53
List of funds that qualify over 5Y AND 4Y AND 3Y (70% or more rolling return outperformance consistency)
Only 42 out of 260 equity mutual funds consistently outperformed the Nifty 50! They are listed below.
Note: We have only used Nifty 50 TRI as the lone benchmark for all categories. Please investigate these funds’ performance with more relevant benchmarks using our monthly screener linked above.
| Category | Fund |
| Aggressive Hybrid Fund | CANARA ROBECO EQUITY HYBRID FUND – DIRECT PLAN – GROWTH OPTION |
| Contra Fund | Kotak India EQ Contra Fund – Growth – Direct |
| Contra Fund | Invesco India Contra Fund – Direct Plan – Growth |
| ELSS | DSP Tax Saver Fund – Direct Plan – Growth |
| ELSS | BOI AXA Tax Advantage Fund-Direct Plan- Growth |
| ELSS | quant Tax Plan – Growth Option – Direct Plan |
| ELSS | CANARA ROBECO EQUITY TAX SAVER FUND – DIRECT PLAN – GROWTH OPTION |
| ELSS | Kotak Tax Saver-Scheme-Growth – Direct |
| ELSS | JM Tax Gain Fund (Direct) – Growth Option |
| ELSS | Invesco India Tax Plan – Direct Plan – Growth |
| ELSS | Axis Long Term Equity Fund – Direct Plan – Growth Option |
| Focussed Fund | SBI FOCUSED EQUITY FUND – DIRECT PLAN -GROWTH |
| Focussed Fund | IIFL Focused Equity Fund-Direct Plan-Growth |
| Focussed Fund | Axis Focused 25 Fund – Direct Plan – Growth Option |
| Large & Mid Cap Fund | Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth |
| Large & Mid Cap Fund | CANARA ROBECO EMERGING EQUITIES – DIRECT PLAN – GROWTH OPTION |
| Large & Mid Cap Fund | Kotak Equity Opportunities Fund – Growth – Direct |
| Large & Mid Cap Fund | Invesco India Growth Opportunities Fund – Direct Plan – Growth |
| Large & Mid Cap Fund | Sundaram Large and Midcap Fund Direct Plan – Growth |
| Large Cap Fund | Axis Bluechip Fund – Direct Plan – Growth |
| Large Cap Fund | CANARA ROBECO BLUE CHIP EQUITY FUND – DIRECT PLAN – GROWTH OPTION |
| Large Cap Fund | Mirae Asset Large Cap Fund – Direct Plan – Growth |
| Mid Cap Fund | Axis Midcap Fund – Direct Plan – Growth |
| Mid Cap Fund | Invesco India Midcap Fund – Direct Plan – Growth Option |
| Mid Cap Fund | Kotak Emerging Equity Scheme – Growth – Direct |
| Multi Cap Fund | CANARA ROBECO FLEXICAP FUND – DIRECT PLAN – GROWTH OPTION |
| Multi Cap Fund | Parag Parikh Flexi Cap Fund – Direct Plan – Growth |
| Multi Cap Fund | quant Active Fund-GROWTH OPTION-Direct Plan |
| Multi Cap Fund | UTI – Flexi Cap Fund-Growth Option – Direct |
| Multi Cap Fund | DSP Flexi Cap Fund – Direct Plan – Growth |
| Multi Cap Fund | JM Flexicap Fund (Direct) – Growth Option |
| Sectoral/ Thematic | CANARA ROBECO CONSUMER TRENDS FUND – DIRECT PLAN – GROWTH OPTION |
| Sectoral/ Thematic | Mirae Asset Great Consumer Fund – Direct Plan – Growth |
| Sectoral/ Thematic | Aditya Birla Sun Life India Gennext Fund – Growth – Direct Plan |
| Sectoral/ Thematic | Aditya Birla Sun Life Digital India Fund – Growth – Direct Plan |
| Sectoral/ Thematic | ICICI Prudential Technology Fund – Direct Plan -Growth |
| Sectoral/ Thematic | quant Flexi Cap Fund – Growth Option-Direct Plan |
| Sectoral/ Thematic (international) | Nippon India US Equity Opportunites Fund- Direct Plan- Growth Plan- Growth Option |
| Sectoral/ Thematic (international) | ICICI Prudential US Bluechip Equity Fund – Direct Plan -Growth |
| Small Cap Fund | SBI Small Cap Fund – Direct Plan – Growth |
| Small Cap Fund | Axis Small Cap Fund – Direct Plan – Growth |
| Small Cap Fund | Nippon India Small Cap Fund – Direct Plan Growth Plan – Growth Option |
These results again indicate the difficulty of actively managed funds beating a flagship index. We urge young earners to invest in index mutual funds and not repeat the mistakes of older investors like me. See Fourteen Years of Mutual Fund Investing: My Journey and lessons learned.