Only 8 out of 207 active MFs outperformed Nifty 100 Low Volatility 30!

Published on / By M. Pattabiraman Twitter: @pattufreefincal

Published: February 19, 2023 at 6:00 am

In this article, we evaluate the performance of 207 actively managed mutual funds across eight categories to identify consistent performers.

Regular readers may be aware that we have proclaimed the benefits of low-volatility investing for a few years. See Nifty Low Volatility 50: A Benchmark Index to watch out for (July 2016). We publish a low volatility + momentum stock screener each month and update the direct equity portfolio performance based on this idea.

Our monthly screener uses the NIfty 100 Low Volatility 30 as an additional benchmark for these actively managed mutual fund categories.

  • Aggressive Hybrid Fund
  • Contra Fund
  • Dividend Yield Fund
  • Flexicap
  • Large Cap Fund
  • Sectoral/ Thematic
  • Sectoral/ Thematic (international)
  • Value Fund

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%. This data is part of our monthly equity mutual fund screeners.

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 Handpicked List of Mutual Funds (PlumbLine).

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!




    🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

    Out of 207 funds, only 19 manage 70% or more rolling return outperformance consistency against the Nifty 100 Low Volatility 30 and 14 are sectoral or thematic funds! They are tabulated below.

    CategoryFund
    Contra FundInvesco India Contra Fund – Direct Plan – Growth
    Contra FundKotak India EQ Contra Fund – Growth – Direct
    Flexicapquant Flexi Cap Fund – Growth Option-Direct Plan
    Large Cap FundAxis Bluechip Fund – Direct Plan – Growth
    Large Cap FundMirae Asset Large Cap Fund – Direct Plan – Growth
    Sectoral/ ThematicAditya Birla Sun Life Digital India Fund – Growth – Direct Plan
    Sectoral/ ThematicAditya Birla Sun Life India Gennext Fund – Growth – Direct Plan
    Sectoral/ ThematicCANARA ROBECO CONSUMER TRENDS FUND – DIRECT PLAN – GROWTH OPTION
    Sectoral/ ThematicDSP Natural Resources and New Energy Fund – Direct Plan – Growth
    Sectoral/ ThematicICICI Prudential Technology Fund – Direct Plan -Growth
    Sectoral/ ThematicInvesco India Financial Services Fund – Direct Plan – Growth
    Sectoral/ ThematicMirae Asset Great Consumer Fund – Direct Plan – Growth
    Sectoral/ ThematicSBI BANKING & FINANCIAL SERVICES FUND – DIRECT PLAN – GROWTH
    Sectoral/ ThematicSBI TECHNOLOGY OPPORTUNITIES FUND – DIRECT PLAN – GROWTH
    Sectoral/ ThematicTata Digital India Fund-Direct Plan-Growth
    Sectoral/ ThematicTata India Consumer Fund-Direct Plan-Growth
    Sectoral/ ThematicTata Resources & Energy Fund-Direct Plan-Growth
    Sectoral/ Thematic (international)ICICI Prudential US Bluechip Equity Fund – Direct Plan -Growth
    Sectoral/ Thematic (international)Nippon India US Equity Opportunites Fund- Direct Plan- Growth Plan- Growth Option

    Out of these 19, if we further demand a rolling return outperformance consistency score of >= 70% over four years, the count drops to these ten.

    CategoryFund
    Contra FundInvesco India Contra Fund – Direct Plan – Growth
    Contra FundKotak India EQ Contra Fund – Growth – Direct
    Flexicapquant Flexi Cap Fund – Growth Option-Direct Plan
    Large Cap FundMirae Asset Large Cap Fund – Direct Plan – Growth
    Sectoral/ ThematicCANARA ROBECO CONSUMER TRENDS FUND – DIRECT PLAN – GROWTH OPTION
    Sectoral/ ThematicMirae Asset Great Consumer Fund – Direct Plan – Growth
    Sectoral/ ThematicAditya Birla Sun Life Digital India Fund – Growth – Direct Plan
    Sectoral/ ThematicAditya Birla Sun Life India Gennext Fund – Growth – Direct Plan
    Sectoral/ ThematicTata Digital India Fund-Direct Plan-Growth
    Sectoral/ ThematicTata Resources & Energy Fund-Direct Plan-Growth
    Sectoral/ Thematic (international)Nippon India US Equity Opportunites Fund- Direct Plan- Growth Plan- Growth Option

    Out of these ten, if we further demand a rolling return outperformance consistency score of >= 60% over three years, we are left with these eight funds.

    1. Invesco India Contra Fund – Direct Plan – Growth
    2. Quant Flexi Cap Fund – Growth Option-Direct Plan
    3. Mirae Asset Large Cap Fund – Direct Plan – Growth
    4. CANARA ROBECO CONSUMER TRENDS FUND – DIRECT PLAN – GROWTH OPTION
    5. Mirae Asset Great Consumer Fund – Direct Plan – Growth
    6. Aditya Birla Sun Life Digital India Fund – Growth – Direct Plan
    7. Aditya Birla Sun Life India Gennext Fund – Growth – Direct Plan
    8. Tata Digital India Fund-Direct Plan-Growth
    9. Nippon India US Equity Opportunites Fund- Direct Plan- Growth Plan- Growth Option

    That is a pretty poor performance!

    Caution: Although we prefer the low volatility factor to other factors, it must be understood that it would not always outperform the Nifty 50 or Nifty 100. See, for example, Nifty 100 Low Volatility 30 vs Nifty 50: Return difference at an all-time low.

    Readers may be aware that we are invested in the UTI S&P BSE Low Volatility Index Fund (link points to a detailed review) and low-volatility stocks. Also, see: Portfolio Audit 2022: The annual review of my goal-based investments.

    Do share this article with your friends using the buttons below.
    🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
    Use our Robo-advisory Excel Tool for a start-to-finish financial plan! ⇐ More than 1000 investors and advisors use this!
    New Tool! => Track your mutual funds and stocks investments with this Google Sheet!
    • Follow us on Google News.
    • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
    • Join our YouTube Community and explore more than 1000 videos!
    • Have a question? Subscribe to our newsletter with this form.
    • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
    Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!




      Explore the site! Search among our 2000+ articles for information and insight!

      About The Author

      Pattabiraman editor freefincalDr 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 promoting unbiased, commission-free investment advice.
      Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3000 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 700 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!   
      Our new book for kids: “Chinchu gets a superpower!” is now available!
      Both boy and girl version covers of Chinchu gets a superpower
      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, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? 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 parents 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 (small version)
      Feedback from a young reader after reading Chinchu gets a Superpower!
      Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
      Buy the book: Chinchu gets a superpower for your child!
      How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
      Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
      We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
      About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
      Connect with us on social media
      Our publications

      You Can Be Rich Too with Goal-Based Investing

      You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
      Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis 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.

      Your Ultimate Guide to Travel

      Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and 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 300 (instant download)