Top Performing Mutual Funds in India 2018
The past performance of a mutual fund does not guarantee for the future return. But past performance gives you the signal of future performance. Since there is no other way to find out the future return, Past Performance is the preferred way to find out the best mutual fund. In this post, I would tell you about the top 10 performing mutual funds in 2018. Note, Year 2018 has not been good for the share market thus equity mutual funds did not perform well.
I have ranked the top 10 mutual funds from all categories. Besides this ranking, you would also see the top 5 mutual fund schemes from the 4 main categories. These are Large cap, Multi Cap, Tax saving and Balanced mutual funds.
I would pick only those funds which are available for the retail investor. Also, The ranking would be only for the direct mutual fund as this version of a scheme gives a higher return than the regular version of a fund. I assume that my reader would prefer to invest in the Direct Mutual fund. These are more beneficial.
Top 10 Mutual Funds From All Categories
There are more than 1700 mutual fund schemes in India. Among these, I have selected the top 10 mutual fund schemes which have shown the best performance. Incidentally, in 2018 popular mutual fund did not perform. Rather, the best performers are those funds which invested in global companies or companies which earn in dollars.
|Top Performing Mutual funds (Direct Plan)||Sector||Return in 2018|
|1||Tata Digital India Fund||Technology||24.21|
|2||SBI Technology Opportunities Fund||Technology||19.62|
|3||ICICI Prudential Technology Fund||Technology||18.41|
|4||Aditya Birla Sun Life Digital India Fund||Equity – Other||15.42|
|5||ICICI Prudential US Bluechip Equity Fund||Global – Other||14.59|
|6||Franklin India Technology Fund||Technology||13.98|
|7||Aditya Birla Sun Life International Equity Fund Plan A||Global – Other||13.06|
|8||Reliance US Equity Opportunities Fund||Global – Other||12.96|
|9||DSP US Flexible Equity Fund||Global – Other||12.73|
|10||Franklin India Feeder – Franklin U.S. Opportunities Fund||Global – Other||12.69|
The top 3 best performing mutual fund schemes have invested their money in the technology sector. These were the sector-specific funds and purchased share of the TCS, Infosys, HCL tech etc. But it does not mean that you should start investing in the technology sector funds as sector-specific funds are highly unpredictable. Today it is the technology sector, tomorrow it may be pharma. Thus, the common retail investor should keep away from the sector funds.
Similarly, the global funds have also performed well this year but normally Indian share markets perform better. But if you rely on global companies, you can invest some amount in these funds.
Large Cap Equity Mutual Fund
Large-cap Equity Mutual funds invest in big companies. These companies would be from the top 100 companies in India. The companies are ranked on the basis of the market value. Even some large-cap mutual funds only invest in Sensex or Nifty Shares. In India, those mutual fund schemes are considered most reliable which invest in big companies.
|Large Cap Funds (Direct Plan)||Return in 2018 (%)|
|1||Axis Bluechip Fund||3.95|
|2||Canara Robeco Bluechip Equity FundDirect||2.19|
|3||JM Large Cap Fund||1.22|
|4||Edelweiss Large Cap||-0.29|
|5||HDFC Top 100 Fund||-0.68|
You can see that the returns from these funds have not been good. In fact, most of the large-cap funds have given a negative return. It is only top 3 funds which could manage a positive return. Even the returns were less than the saving account of the bank.
The low return of these funds shows the unpredictable nature of the equity mutual fund. Therefore, you should not consider that mutual funds always give a good return.
Large companies can easily face the minor hiccups of the economy. Hence, these companies do not show many ups and down in their share prices. That is why the mutual funds which invest in the large-cap share are relatively secure. The first time investor of the equity mutual fund should start with the Large cap mutual funds.
MultiCap Equity Mutual Fund
This type of mutual fund picks shares from any company. It does not restrict itself to large-cap, mid-cap or small cap.
|Top Multi-Cap Mutual Fund||Return in 2018 (%)|
|1||Axis Multicap Fund Direct Growth||4.72|
|2||UTI Equity Fund||0.33|
|3||ICICI Prudential Multicap Fund||-0.52|
|4||Canara Robeco Equity Diversified Fund||-0.85|
|5||Mirae Asset India Equity Fund||-1.83|
In this ranking as well, the top performing scheme is from the Axis. Other top performing multi-cap mutual funds are UTI Equity fund and ICICI Prudential Multicap fund. In 2018, very few funds could give the positive return. Axis Multicap Fund is one such fund.
Since multi-cap funds invest across the board, there is less risk than the focused or sectoral mutual funds. However, the shares of small and medium companies swing wildly. Hence, the return of these Mutual funds can be somewhat volatile. You should invest a smaller amount in this type of funds.
Tax saving Equity Mutual Fund
Tax Saving Mutual funds are similar to the Muticap fund. They can invest in any of the shares. But, you have to invest into these funds minimum for 3 years. As its name says, this type of mutual funds gives you the tax deduction under section 80C of income tax act.
|Top ELSS Funds||Return in 2018(%)|
|1||Canara Robeco Equity Taxsaver||0.23|
|2||Axis Long Term Equity Fund||-0.24|
|3||ICICI Prudential Long Term Equity Fund||-0.34|
|4||Taurus Tax Shield||-1.43|
|5||Quantum Tax Saving||-2.11|
In this category of mutual funds, Canara Robeco Equity Taxsaver has given the highest return in 2018. The Axis Long Term Equity fund once again performed quite well. It has come up to the number 2. However, except the Canara Robeco Taxsaver all of the ELSS funds have given negative return.
Balanced Mutual Fund
Balanced mutual fund invests in shares and bonds as well. The funds which invest in both types of asset class are called as the balanced fund. If the equity portion is higher then it would be Equity Oriented Balanced mutual fund. While the fund with a higher debt portion would be Debt Oriented Equity Mutual Fund. The following list contains the Equity Oriented Balanced Mutual Funds.
|Top Balanced Mutual Fund (Equity Oriented)||Return in 2018 (%)|
|1||Sundaram Equity Hybrid Fund – Direct Plan – Growth Option||2.44|
|2||JM Equity Hybrid Fund (Direct) – Growth Option||1.54|
|3||Mirae Asset Hybrid Equity Fund -Direct Plan-Growth||0.99|
|4||Canara Robeco Equity Hybrid Fund – Direct Plan – Growth||0.59|
|5||Shriram Hybrid Equity Fund Direct Growth||-0.13|
The balanced mutual fund can be a good way to start investing in the mutual funds. These funds have some bonds thus there is less risk. Because of the bond, these funds do not swings wildly. But, there can be a negative return as equity portion is higher.