In February 2018, SEBI came up with a regulation, wherein the addition of TRI (Total Return Index) came into being. In this process, dividends were included as part of the total returns for particular funds and not their benchmarks.
However, post this rule, dividends are also included in benchmark returns.
Hence, it has become tough for fund managers to continue showing high returns. However, there are still standout funds that have been beating their respective benchmarks since a long time and some since inception.
In this article, we will talk about 10 funds that have beaten its benchmark over the years.
In this article
- 1.Canara Robeco Emerging Equities Fund
- 2.HDFC Mid-Cap Opportunities Fund
- 3.Aditya Birla Sun Life India GenNext Fund
- 5.Mirae Asset Great Consumer Fund
- 5.Reliance Small Cap Fund
- 6.Reliance Large Cap Fund
- 7. ICICI Prudential Bluechip Fund
- 8.Mirae Asset India Equity Fund
- 9.Kotak Emerging Equity Scheme
- 10.L&T Midcap Fund
- Conclusion
1.Canara Robeco Emerging Equities Fund
A fund with a CAGR of more than 27% (last five years), Canara Robeco Emerging Equities has comfortably beaten its benchmark S&P BSE 250 Large & Mid Cap TRI (Almost generating double returns as compared to the benchmark).
With a large focus on marquee names such as HDFC Bank, ICICI Bank, RIL, Infosys, L&T, Kotak Mahindra Bank, ITC Ltd. and an expense ratio of less than one percent, this fund has been an investor favorite over the years.
The AUM size is roughly 4000 crores, therefore, we can definitely look for long term investment in this fund.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 92.8 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 4,097 crores |
| Riskometer | Moderately High |
| Minimum SIP | 1000 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 250 Large & Mid Cap TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 0.95% |
| Exit Load | Exit load is 1% if redeemed within 1 year |
| Type | Equity – Large & Mid Cap |
| Fund Manager | Ravi Gopalakrishnan, Kartik Mehta |
Investment Objective
The investment objective of the fund is to generate capital appreciation in diversified large and mid-cap stocks.
Holding Analysis
2.HDFC Mid-Cap Opportunities Fund
Launched in 2013, the fund has met the expectation of investors by investing primarily in mid-cap stocks.
Mr. Chirag Setalvad, the fund manager has extensive experience in the field of fund management, equity research and investment banking. He has been in the industry for more than 20 years now.
Few of the multi-bagger stocks in the portfolio include Sundaram Fasteners, Balkrishna Industries Ltd., City Union Bank Ltd., Aarti Industries Ltd., Voltas Ltd., RBL Bank Ltd., and Tata Chemicals.
All these stocks have performed exceptionally well over the years
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 52.9 |
| Plan Type | Direct |
| Ratings by Groww | 4 Star |
| AUM (Fund Size) | 20,381 crores |
| Riskometer | Moderately High |
| Minimum SIP | 500 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE Mid Cap TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 1.16% |
| Exit Load | Exit load is 1% if redeemed within 1 year |
| Type | Equity – Mid Cap |
| Fund Manager | Chirag Setalvad |
Investment Objective
The investment objective of the fund is to generate long term capital appreciation that primarily constitutes equity and equity-related securities of small and mid-cap companies.
3.Aditya Birla Sun Life India GenNext Fund
Aditya Birla Sun Life GenNext Fund has been one of the top sectoral funds with a CAGR return of more than 20%.
Though it has a slightly higher expense ratio at 1.48 percent, the AUM of the fund is less than 1000 crores, highlighting the growth aspect that is possible.
The fund lays special focus on two sectors, which are finance and FMCG, collectively comprising more than 60% of the equity portfolio.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 81.6 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 898 crores |
| Riskometer | High |
| Minimum SIP | 1000 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 500 TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 1.48% |
| Exit Load | Exit load is 1% if redeemed within 1 year |
| Type | Equity – Sectoral/ Thematic |
| Fund Manager | Anil Shah, Chanchal Khandelwal |
Investment Objective
The investment objective is finely tuned with the portfolio composition of the fund.
The fund invests in equity and equity related instruments in companies that are expected to benefit from the rising consumption patterns in India.
Holding Analysis
5.Mirae Asset Great Consumer Fund
Mirae Asset Great Consumer Fund as the name suggests is also a consumer-centric sectoral fund.
Automobiles, Financial and FMCG comprise two-thirds of the portfolio. In addition to this, it has one of the lowest expense ratios, when compared to other sectoral funds (expense ratio is 0.70 percent).
This fund is relatively untapped by investors.
Some of the top names they invest in are HDFC Bank, Dabur India, Aditya Birla Fashion & Retail, Maruti Suzuki India, Nestle India, Havells India, United Breweries Ltd., etc.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 35.1 |
| Plan Type | Direct |
| Ratings by Groww | 4 Star |
| AUM (Fund Size) | 633 crores |
| Riskometer | High |
| Minimum SIP | 1000 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 200 TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 0.70% |
| Exit Load | Exit load is 1% if redeemed within 1 year |
| Type | Equity – Sectoral/ Thematic |
| Fund Manager | Bharti Sawant, Ankit Jain |
Investment Objective
The investment objective of the scheme is mostly dependent on the consumption pattern in our economy.
The fund invests in equity and equity related instruments to generate long term capital appreciation in companies that are likely to benefit either directly or indirectly from consumption led demand in India and China.
Holding Analysis
5.Reliance Small Cap Fund
This fund has generated a CAGR of more than 25% in the last five years. The fund also has the benefit of starting a SIP with as low as INR 100. The AUM size of the fund to is decent at roughly 7000 crores and the expense ratio is around 1.15 percent. The fund invests in stocks like HDFC Ltd., Axis Bank and also a few small caps like Zydus Wellness, Vindhya Textiles, Deepak Nitrite, Orient Electric, and IDFC First Bank. Therefore, investors can look at this fund for a long term horizon (at least five years) in mind.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 38.8 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 7,260 crores |
| Riskometer | Moderately High |
| Minimum SIP | 100 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE Small Cap TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 1.15% |
| Exit Load | Exit load is 1% if redeemed within 1 year |
| Type | Equity – Small Cap |
| Fund Manager | Samir Rachh, Dhrumil Shah |
Investment Objective
The primary objective of the fund is to generate long term capital appreciation by investing predominantly in equity and equity-related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities
Holding Analysis
6.Reliance Large Cap Fund
Investors can surely look into this fund for long term investing. The fund has generated stable returns throughout its history and as the fund invests primarily in large caps, there is protection from volatility as well. The fund has not just beaten the benchmark NIFTY 100 Total Return Index but also other mutual funds in the same category. There are only two sectors that the fund is invested which are healthcare and engineering. Some of the top holdings include ABB Ltd., Aurobindo Pharma, Amara Raja Batteries, etc.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 34.2 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 11,794 crores |
| Riskometer | Moderately High |
| Minimum SIP | 100 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 100 TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 1.20% |
| Exit Load | Exit load is 1% if redeemed within 1 year (for more than 10% of investments) |
| Type | Equity – Large Cap |
| Fund Manager | Ashwani Kumar, Sailesh Raj Bhan |
Investment Objective
There are two objectives set by the fund as described below:-
The first is to seek long term capital appreciation for investors. This is achieved by investing in equity and equity related instruments of companies whose market capitalization is within the range of BSE 200 Index (highest and lowest combined);
The second objective is to invest in the debt and money market space.
Holding Analysis
7. ICICI Prudential Bluechip Fund
Launched in 2013 and led by Mr. S Naren, ICICI Prudential Bluechip Fund has a strong track record of robust performance. It has beaten its benchmark NIFTY 100 TRI since inception.
With a major focus on key sectors and big names such as ICICI Bank, HDFC Ltd. HDFC Bank Ltd., ITC Ltd., Infosys, Motherson Sumi Systems Ltd., etc, this fund will provide enough opportunities for capital appreciation in key sectors which are poised to grow (Financials, auto, IT, consumer goods).
The minimum amount of SIP in the fund starts at as low as INR 100. Therefore, the fund is suitable for retail investors.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 41.7 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 19,863 crores |
| Riskometer | Moderately High |
| Minimum SIP | 100 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 100 TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 1.26% |
| Exit Load | Exit load is 1% if redeemed upto 1 year |
| Type | Equity – Large Cap |
| Fund Manager | S Naren, Rajat Chandak |
Investment Objective
The investment objective for the fund is two-fold, the first is to seek long term capital appreciation and income distribution by investing in the top 200 stocks (equity and equity related instruments) in terms of market capitalization on the National Stock Exchange (NSE);
A portion is also invested in debt securities and money market instruments to generate stable returns
Holding Analysis
8.Mirae Asset India Equity Fund
The fund has constantly beaten its benchmark S&P BSE 200 TRI, The expense ratio of the fund is very low at 0.79%. Also, the fund invests in companies like HDFC Bank Ltd., ICICI Bank Ltd., RIL, Kotak Mahindra Bank, etc.
This fund has been one of the top picks for investors in recent year’s. The Fund Manager Mr. Neelesh Surana has been in the talks recently and has gained loads of experience in the fund industry space.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 49.9 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 10,343 crores |
| Riskometer | Moderately High |
| Minimum SIP | 1000 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE 200 TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 0.79% |
| Exit Load | Exit load is 1% if redeemed upto 1 year |
| Type | Equity – Multi Cap |
| Fund Manager | Neelesh Surana, Harshad Borawake |
Investment Objective
The investment objective of the fund is to generate long term capital appreciation by capitalizing on potential investment opportunities in equity and equity related instruments.
Holding Analysis
9.Kotak Emerging Equity Scheme
The following features make the fund suitable for investment over the long term for retail investors. Inspite of being in the mid-cap space, the fund is not very volatile. The expense ratio is very low at 0.80%. The fund invests in companies such as Bharat Financial Inclusion Ltd., Atul Ltd., RBL Bank Ltd., Ramco Cements Ltd., PI Industries Ltd., etc. This fund is ideal for investors who have a high-risk appetite and who want to see their capital grow.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 37.7 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 3,425 crores |
| Riskometer | Moderately High |
| Minimum SIP | 1000 |
| Performance wr.t. its Benchmark | Has beaten its benchmark S&P BSE Mid Cap TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 0.80% |
| Exit Load | Exit load is 1% if redeemed upto 1 year |
| Type | Equity – Mid Cap |
| Fund Manager | Pankaj Tibrewal |
Investment Objective
The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity-related securities. The portfolio comprises mainly of mid and small cap companies.
Holding Analysis
10.L&T Midcap Fund
Rated 5 stars by Groww; L&T Midcap Fund has consistently beaten its benchmark S&P BSE Mid Cap TRI since inception. This fund is equally good for lump sum and SIP. Some of its major holdings includes RBL Bank, City Union Bank, Berger Paints, Torrent Pharmaceuticals, Cummins India, Abbott India, Indian Hotels, etc.
Key Information
| Launch Date | 01 – Jan – 2013 |
| NAV (23-Feb-2019) | 130.2 |
| Plan Type | Direct |
| Ratings by Groww | 5 Star |
| AUM (Fund Size) | 3,665 crores |
| Riskometer | High |
| Minimum SIP | 500 |
| Performance w.r.t. its Benchmark | Has beaten its benchmark S&P BSE Mid Cap TRI over long periods of time |
| Age of the Fund | 6 years |
| Expense Ratio | 0.93% |
| Exit Load | Exit load is 1% if redeemed upto 1 year |
| Type | Equity – Mid Cap |
| Fund Manager | Soumendra Nath Lahiri, Vihang Naik |
Investment Objective
The investment objective of the fund is to generate long term capital appreciation by investing primarily in mid-cap stocks. However, there is a constraint on the market capitalizations of companies that it invests in which range between INR 300 crore to INR 3000 crores
Holding Analysis
Conclusion
The funds mentioned above have consistently beaten the market and generated a considerable alpha. For investor convenience, we have taken into account funds from various categories, thereby giving investors an opportunity to select the best funds as per their risk appetite.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww
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.
