The Best And The Worst-Performing Mutual Fund Schemes Of 2019
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The Best And The Worst-Performing Mutual Fund Schemes Of 2019

2019 was yet another year of uncertainties for Indian equities due to a liquidity crisis, trade war tensions and a slowing economy, among others. While the benchmarks scaled new peaks led by select large caps, the broader market bled.

The Nifty 50 Index and the BSE Sensex have rallied close to 12-15 percent in 2019 and are on track to close the year at fresh record highs. In contrast, the Nifty Midcap and Smallcap indices have suffered a loss of 5 and 11 percent, respectively.

That affected the returns of the mutual funds as well. Mirroring the benchmark, the large-cap schemes gave good returns while the mid- and small-cap schemes struggled. Investors of debt mutual funds were left worried after the shock defaults by IL&FS Group subsidiaries.

Here are the best- and worst-performing mutual fund schemes of 2019…

Selection criteria:

  • Sectoral and thematic funds or those focused outside India haven’t been considered.

Best-Performing Large-Cap Scheme

Average return of the large-cap category—which comprises the top 100 companies by market capitalisation—stood at 11 percent during the year.

Axis Bluechip Fund

  • Year-to-date return: 19 percent

A rally in financial sector stocks, that comprised 42 percent of its portfolio as of November, led to the fund’s outperformance, according to Crisil Research.

The fund consistently held 15 stocks—accounting for 64.5 percent of its portfolio as of November—that outperformed the benchmark Nifty 50 year-to-date, according to its factsheet.

Worst-Performing Large-Cap Scheme

JM Large Cap Fund

  • Year-to-date return: 5 percent

Even as the heavyweights of the Asit Bhandarkar-managed fund, including Reliance Industries Ltd., HDFC Bank Ltd. and HDFC Ltd., Axis Bank Ltd. and Tata Consultancy Services Ltd., have gained 17-38 percent this year, ITC Ltd. and Larsen & Toubro Ltd.—that comprise nearly 6 percent of the portfolio—have tumbled. That capped the fund’s returns during the year.

Its annualised three-year and five-year returns stood at 9.28 percent and 5.57 percent, respectively, compared with the benchmark BSE 100 TRI’s 15.89 percent and 9.73 percent return.

The fund held 89 stocks in its portfolio during the year, according to Crisil. Of these, 48 stocks, that formed 74.5 percent of the portfolio, were consistently held on an average every month.

Best-Performing Mid-Cap Scheme

More than a third of all mid-cap schemes suffered losses this year. The average return of the category stood at 3 percent in 2019.

Axis Midcap Fund

  • Year-to-date return: 12 percent

Info Edge (India) Ltd., City Union Bank Ltd. and Avenue Supermarts Ltd., which together form about 14 percent of the portfolio, drove the fund’s performance this year.

Of the stocks consistently held by the fund, 21 beat the benchmark BSE Midcap Index this year. These 21 stocks, including Info Edge, Bajaj Finance Ltd., City Union Bank, Bata India Ltd. and Avenue Supermarts, comprise 56.97 percent of the fund’s portfolio as of November, according to its factsheet.

Worst-Performing Mid-Cap Scheme

Aditya Birla Sun Life Midcap Fund

  • Year-to-date return: -4 percent

A 7-42 percent slump in shares of some of the fund’s top holdings dragged its net asset value during the year.

Its annualised three-year and five-year returns stood at 3.72 percent and 7.18 percent, respectively, compared with the Nifty Midcap 100 TRI’s 6.09 percent and 7.18 percent returns.

The fund consistently held 36 stocks in its portfolio on average every month. Of these, 18 stocks, which formed 34.62 percent of the portfolio, outperformed the benchmark during the year, according to Crisil.

Best-Performing Small-Cap Scheme

Small caps, too, witnessed a rout during the year as more than half of all schemes in the segment suffered losses. On an average, the category lost 3 percent in 2019.

Axis Small Cap Fund

  • Year-to-date return: 19 percent

A rally in chemicals, financials and cement stocks, that form 43 percent of the fund’s portfolio, led to its outperformance this year.

Of the stocks consistently held by the fund, 16 beat the benchmark Nifty Smallcap 100 Index year-to-date. These 16 stocks, including Fine Organic Industries Ltd., NIIT Technologies Ltd., Galaxy Surfactants Ltd., Vinati Organics Ltd. and MAS Financial Services Ltd., comprised 55.84 percent of the fund’s portfolio as of November.

Worst-Performing Small-Cap Scheme

Aditya Birla Sun Life Small Cap Fund

  • Year-to-date return: -11 percent

Shares of three of the top 10 holdings of the Jayesh Gandhi-managed fund have dropped during the year. That weighed on the fund’s performance.

Its annualised three-year and five-year returns stood at 0.96 percent and 6.59 percent, respectively, compared with the Nifty Smallcap 100 TRI’s 0.85 percent and 3.34 percent.

The fund consistently held 45 stocks in its portfolio on average every month, according to Crisil. Of these, only 13 stocks—that account for 27.8 percent of the portfolio—outperformed the benchmark.

Best-Performing Multi-Cap Scheme

The average return of the category stood at 10 percent during the year.

Axis Multicap Fund

  • Year-to-date return: 18 percent.

A rally in financial stocks, that account for more than 40 percent of the fund’s portfolio, drove its performance this year.

Of the stocks consistently held by the fund in its portfolio, 17 outperformed the benchmark Nifty 500 Index year-to-date. These 17 stocks, including Bajaj Finance, ICICI Bank Ltd., Kotak Mahindra Bank Ltd., HDFC Bank and Nestle India Ltd., formed 70.31 percent of its portfolio as of November.

Worst-Performing Multi-Cap Scheme

Nippon India Multicap Fund

  • Year-to-date return: 2.5 percent

Shares of three of the top 10 holdings of the erstwhile Reliance Multi Cap Fund have tumbled during the year. That weighed on the fund’s performance.

The fund consistently held 40 stocks in its portfolio on average every month, according to Crisil. Of these, only 11 stocks—that formed 41 percent of the portfolio—outperformed the benchmark during the year.

(The data for average category return is from Value Research)

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