Groww Logo
Home>Blog>Mutual Funds>10 Funds That Have Beaten Their Benchmark in 2022

10 Funds That Have Beaten Their Benchmark in 2022

08 June 2022

India is one of the fastest-growing economies in the world, and it’s a popular place for investors to put their money. The investment market in India is growing at a rapid pace. There has been a huge increase in the number of mutual funds and equity schemes that are available for investors to choose from.

With so many options available, it is important to understand which funds have beaten their benchmark and which ones have not.

Mutual funds are investment vehicles that invest in stocks, bonds, money market instruments, and other securities. Mutual funds are professionally managed by fund managers who choose the securities to be held by the mutual fund over a specified period of time, normally ranging from days to years. The fund manager/investment advisor attempts to maximize returns while managing risk within the portfolio.

The year 2022 has been a great year for equity mutual funds. Not only did the benchmark indices grow at 10%, but many of them have outperformed their benchmarks. Equity Mutual Funds are a type of mutual fund that invests in stocks, bonds, and other securities. They are one of the most popular types of mutual funds in India, with over $2 trillion under management.

Funds That Have Beaten Their Benchmark in 2022

Equity funds have been a great place to invest in India over the years. It is not surprising that many investors are now looking for investment funds that have beaten their benchmark and performed better than the market average.

Equity schemes for eg. Quant Small Cap Fund and Quant Infrastructure Fund have delivered returns of over 80% this year. Their year-to-date (YTD) return of benchmark indices has been between 39-56% as well.

Here is a list of the best mutual funds in India to invest in whose performance has been better than their benchmark:

S.No.

Fund Name

1.

Kotak Small Cap Fund

2.

Principal Small Cap Fund

3.

Tata Small Cap Fund

4.

Nippon India Small Cap Fund

5.

Canara Robeco Small Cap Fund

6.

BOI AXA Small Cap Fund

7.

Edelweiss Small Cap Fund

8.

SBI Small Cap Fund

9.

Reliance Small Cap Fund

10.

HDFC Small Cap Fund

Factors to Consider Before Investing

While there are many mutual funds on offer, it is important to choose one that will help you in your financial goals. Many factors need to be considered when choosing an equity fund.

  • Financial Goals

The first thing that you need to think about when investing in equity mutual funds is your financial goals. You will have to decide how much money you want to invest and how long you are willing to invest. This will help you determine if an equity mutual fund is right for you. If you are looking for a short-term investment, then an equity mutual fund may be a good choice for you. However, if you would like to invest for the long-term (5 or more years), then this may not be the best option for your needs.

  • Taxation Of Equity Funds

Another important factor when choosing between an equity mutual fund and another type of investment option is the taxation of these two types of investments. There are many different types of income taxes that may apply when investing in either type of investment option; therefore it is important to understand which ones apply before making any decisions on where or how much money should be invested into either type of account.

  • Dividends

Dividend paying equity funds offer investors a regular stream of income, which can be reinvested into other assets or used to meet expenses such as rent, car payments, etc. Dividends are taxed at a lower rate than capital gains (10%). Be sure to consider this when choosing an equity fund. 

  • Size of The Fund

The size of the fund should be appropriate for your needs. If you are looking to invest small amounts then it might not be worth it to invest in large funds with high expenses. However, if you are looking to invest large amounts then it may be worth considering larger funds that have lower expenses.

  • Fund Performance

You should check how well a fund has performed over the years as this will help you decide whether or not it is suitable for your needs. If a fund has been performing well over time then this might indicate that it will continue doing so into the future, which would mean that it could be a good investment option for you. 

  • Expense Ratio

The expense ratio is simply what percentage of your investment goes toward paying expenses for running the fund and marketing it—it’s kind of like an ongoing fee that you pay every year even if nothing else happens! It’s important to compare this number across different funds because some will charge higher fees than others and this can make a big difference to your bottom line over time. 

  • Risk/Reward Ratio

Finally, the risk-reward ratio tells you what level of risk you can expect for each unit of return on investment (ROI) that you receive from investing in this particular mutual fund over time. 

Performance Overview of the Best Funds

– Kotak Small Cap Fund

Kotak Small Cap Fund is a closed-ended equity scheme which was launched in 2005. The fund has been managed by Kotak Mahindra Mutual Fund since its inception. The fund invests in small-cap stocks of companies that are listed on the BSE and NSE. It is one of the most popular small-cap funds in India and has seen tremendous success over the years.

– Principal Small Cap Fund

The Principal Small Cap Fund is an open-ended equity fund that invests in mid-and small-cap companies. The Principal Small Cap Fund seeks to provide investors with long-term, risk-adjusted returns through a diversified portfolio of mid-and small-cap stocks. The fund’s managers will seek to invest in quality operating companies with strong fundamentals and sustainable growth potential, while also maintaining a reasonable level of risk.

– Tata Small Cap Fund

Tata Small Cap Fund is an actively managed diversified equity fund that aims to provide consistent returns to its investors. The fund’s portfolio is composed of mid-cap and small-cap stocks. Tata Small Cap Fund has been in operation since November 2018 and has returned an annualized return of 25.48% in the last three years. The fund manager, Satish Chandra Mishra, has years of experience in the investment industry.

– Nippon India Small Cap Fund

Nippon India Small Cap Fund is a diversified equity fund. The Fund primarily invests in the stocks of small-cap companies. The Fund will aim to achieve this objective by investing predominantly in equity securities of companies with a market capitalization below Rs500 crore (Rs5 billion) at the time of investment. It was launched on September 16, 2010, and has been open for subscriptions since then.

– Canara Robeco Small Cap Fund

Canara Robeco Small Cap Fund is an open-ended equity scheme of Canara Robeco Mutual Fund. It was launched in  2019. February. The fund invests in.  Canara Robeco Small Cap Fund is a mutual fund managed by Canara Robeco Asset Management Company Limited. The fund invests in the mid and small-cap stocks of Indian companies which means securities of small, relatively young companies that are expected to grow at a faster rate than large firms.

Conclusion

As you consider these best mutual funds for 2022, also consider whether you have a reason to be investing in them and how this fits into your overall investment strategy. Don’t simply invest in a mutual fund because it’s easy and convenient, but take the time to learn about the company and understand what they do. And naturally, if you want to sell a mutual fund, or want to buy or sell shares in the future, you should make that decision based on your own research as well. Just because one mutual fund makes this list doesn’t mean it’s necessarily going to work out better for you than other choices if you’re considering selling it down the road. 

Above, we’ve put together a list of the best funds to invest in for you to review. Of course, if you’re looking for an investment that will beat its benchmark consistently over time, you’ll want to invest in more than just one fund. But these top-performing funds may be worth looking into.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA disclaimer, please click here

Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.2.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI