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These mutual funds never turned negative in 5- & 7-yr periods since inception

Since rolling returns are calculated on a series of data, there is a very high probability of decent performance from these schemes.

, ET Online|
Updated: Oct 25, 2019, 01.59 PM IST
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Mutual fund advisors always ask investors to choose schemes that have consistently performed through ups and downs in the market. There can be no bigger high than watching your investments or portfolio in the positive territory while everything else is the red.

ETMutualFunds.com plumbed the data to take out equity mutual fund schemes which have fared well in all kind of markets in the five and seven year periods. We have chosen these tenures as five year is considered to be the minimum suitable time period if you want to invest in equities.

How did we check the consistency? We used rolling returns instead of trailing returns. Rolling return is the average of a series of returns given by a scheme over a long period of time. To understand the concept better, you can read: Is rolling return the best way to measure performance of mutual funds?

Make sure you have understood ‘rolling returns’ before moving further. For our study, we have used five and seven year rolling returns rolled on a daily basis since the schemes’ inception.

Next, we filtered out those schemes which have given minimum returns of 15 per cent in both the five- and seven-year periods. In order to get the strongest schemes out of these filtered consistent performers, we removed those schemes which have given negative returns in any of the five or seven year periods in their entire life, that is, since their inception.

We call these schemes the sturdiest as they have managed deliver in different market conditions. And the good news is there are quite a lot of schemes that have managed this feat.

Look at the table below for the list of sturdiest equity mutual fund schemes.

Scheme Name 5-yr min. return 5-yr mean return* 7-yr min. return 7-yr mean return*
Large cap schemes
Franklin India Bluechip Fund 3.57 22.13 7.87 21.83
HDFC Top 100 Fund 5.11 21.73 9.33 22.58
Tata Large Cap Fund 1.24 21.01 6.04 20.61
Aditya Birla SL Frontline Equity Fund 3.73 18.79 9.19 17.89
Mirae Asset Large Cap Fund 10.11 18.47 13.34 18.04
DSP Top 100 Equity Fund 2.59 15.88 6.83 15.30
ICICI Pru Bluechip Fund 7.68 15.72 11.76 15.26
Mid cap schemes
Nippon India Growth Fund 0.76 26.07 6.13 26.51
Sundaram Mid Cap Fund 2.26 24.70 8.34 21.86
HDFC Mid-Cap Opportunities Fund 7.13 20.91 14.79 21.02
Axis Midcap Fund 9.32 20.22 17.21 19.23
Aditya Birla SL Midcap Fund 0.18 19.69 7.45 18.38
Invesco India Midcap Fund 1.37 18.87 10.37 19.09
DSP Midcap Fund 4.18 17.85 8.41 17.86
UTI Mid Cap Fund 0.59 17.31 2.78 16.72
Large & mid cap schemes
Mirae Asset Emerging Bluechip 14.81 26.92 21.73 24.12
Principal Emerging Bluechip Fund 10.34 22.47 14.90 20.75
Canara Robeco Emerging Equities Fund 1.13 19.26 5.24 18.39
ICICI Pru Large & Mid Cap Fund 1.70 18.66 7.66 18.39
Multi cap schemes
HDFC Equity Fund 4.95 24.11 8.92 24.10
Franklin India Equity Fund 3.24 22.94 6.81 22.58
Invesco India Multicap Fund 7.45 21.53 15.82 20.98
IDFC Multi Cap Fund 6.69 18.98 13.19 18.50
Kotak Standard Multicap Fund 10.53 17.86 12.39 16.09
Nippon India Multi Cap Fund 5.11 16.79 10.11 16.24
Canara Robeco Equity Diversified Fund 4.44 15.00 8.34 15.01
Small cap schemes
Nippon India Small Cap Fund 9.94 27.33 18.99 23.49
SBI Small Cap Fund 15.01 27.30 18.14 23.63
DSP Small Cap Fund 1.28 22.94 11.81 22.47
HDFC Small Cap Fund 6.80 17.25 11.34 16.83
Tax-saving schemes
HDFC TaxSaver 2.03 27.02 6.62 26.94
ICICI Pru LT Equity Fund 3.67 23.01 5.75 21.13
Franklin India Taxshield 3.72 21.78 8.89 20.68
HDFC Long Term Adv Fund 2.20 21.75 6.86 19.16
Axis Long Term Equity Fund 10.35 21.02 16.67 18.94
IDFC Tax Advt(ELSS) Fund 7.90 17.49 11.88 16.18
Aditya Birla SL Tax Relief '96 1.93 16.42 10.39 15.92
Invesco India Tax Plan 3.40 16.09 10.05 16.25
Nippon India Tax Saver (ELSS) Fund 1.88 15.57 6.21 15.18
Value-oriented schemes
L&T India Value Fund 9.22 21.26 16.01 18.63
Aditya Birla SL Pure Value Fund 4.91 21.07 14.33 20.28
ICICI Pru Value Discovery Fund 5.64 19.39 9.76 18.44
IDFC Sterling Value Fund 5.92 17.98 11.67 17.52
Tata Equity P/E Fund 1.22 17.06 8.56 15.56
*CAGR rolling returns (%)since inception of the schemes
Source: Ace MF

We considered large cap, mid cap, large & mid cap, small cap, multi cap, value-oriented and ELSS or tax-saving schemes for this study.

Investors must note that this study was performed on the past data which does not give us any assurance that the same superior performance will repeat in future. However, since rolling returns are calculated on a series of data, there is a very high probability of decent performance from these schemes going forward.

Also, we might have missed some good schemes like Parag Parikh Long Term Equity Fund and Motilal Oswal Multicap 35 Fund. This is because these schemes have not completed seven years yet.

Also Read

AN INSIGHT TO MUTUAL FUNDS

Is my mutual fund portfolio diversified?

Are these mutual funds in line with my goals?

How are Mutual Funds taxed?

How mutual fund investments are taxed

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