Top equity funds of 2023
2023: Good year for equity mutual fund investors
In the year 2022, stock markets did well overall. The Nifty 50 Index gave good returns of around 23%. The broader market indices (mid and small caps) did even better than the Nifty 50. In this article, we will look at the best equity funds of 2023 in various categories.
Large-cap funds
Large-cap funds have the Nifty 100 Index as their benchmark. The Nifty 100 Index comprises India’s largest 100 companies by market capitalisation. The best large-cap equity funds of 2023 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| Invesco India Largecap Fund | 427 | 33.67% |
| Tata Large Cap Fund | 1,074 | 33.02% |
| Nippon India Large Cap Fund | 10,800 | 32.52% |
| Franklin India Bluechip Fund | 6,620 | 32.45% |
| IDBI India Top 100 Equity Fund | 540 | 32.24% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/large-cap-fund.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 large-cap funds have given a return in the range of 33-32%, which is a very good 1-year return.
Mid-cap funds
Mid-cap funds have the Nifty Midcap 150 Index as their benchmark. The Nifty Midcap 150 Index comprises India’s 101st–250th companies by market capitalisation. The best mid-cap equity funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| PGIM India Midcap Opportunities Fund | 3,584 | 66.55% |
| Baroda Mid-cap Fund – Plan B | 87 | 57.96% |
| Motilal Oswal Midcap 30 Fund | 2,505 | 57.73% |
| Union Midcap Fund | 348 | 54.24% |
| SBI Magnum Midcap Fund | 6,587 | 52.99% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/mid-cap-fund.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 mid-cap funds have given a return in the range of 66-52%, which is an excellent 1-year return.
Small-cap funds
Small-cap funds have the Nifty SmallCap 250 Index as their benchmark. The Nifty SmallCap 250 Index comprises India’s 251st–500th companies by market capitalisation. The best small-cap equity funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| L&T Emerging Businesses Fund | 7,685 | 79.02% |
| Principal Small Cap Fund | 512 | 76.70% |
| Nippon India Small Cap Fund | 17,554 | 75.75% |
| Tata Small Cap Fund | 1,765 | 74.32% |
| Sundaram Select Micro Cap – Series XVII | 115 | 74.20% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/small-cap-fund.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 small-cap funds have given a return in the range of 79-74%, which is an excellent 1-year return.
Multi-cap funds
A multi-cap fund invests a minimum of 75% of its total assets in equity and equity-related instruments. The 75% investment is spread across large, mid, and small-cap (25% each) stocks. The best multi-cap equity funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| Mahindra Manulife Multi Cap Badhat Yojana | 864 | 53.47% |
| Nippon India Multicap Fund | 10,818 | 48.66% |
| Baroda Multi Cap Fund – Plan B | 1,129 | 48.28% |
| Principal Multi Cap Growth Fund | 857 | 46.17% |
| Invesco India Multicap Fund | 1,713 | 41.95% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/multi-cap-fund.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 multi-cap funds have given a return in the range of 53-41%, which is a very good 1-year return.
Flexi-cap funds
A flexi-cap fund invests a minimum of 65% of its total assets in equity and equity-related instruments. The fund manager can choose to invest the minimum 65% or higher across large, mid, and small-cap stocks in their desired proportion. The best flexi-cap equity funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| BOI AXA Flexi Cap Fund | 160 | 47.30% |
| PGIM India Flexi Cap Fund | 2,888 | 45.97% |
| Parag Parikh Flexi Cap Fund | 18,298 | 45.62% |
| Franklin India Flexi Cap Fund | 10,020 | 40.35% |
| IDBI Flexi Cap Fund | 375 | 38.02% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/flexi-cap-fund.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 flexi-cap funds have given a return in the range of 47-38%, which is a good 1-year return.
ELSS funds
An equity-linked savings scheme (ELSS) invests a minimum of 80% of its total assets in equity and equity-related instruments. An ELSS has a lock-in period of 3 years. The amount invested or a maximum of Rs. 150,000, whichever is lower, qualifies for deduction from taxable income under Section 80C of the Income Tax Act. The best ELSS funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| Sundaram Long Term Tax Advantage Fund – Series III | 39 | 69.33% |
| Quant Tax Plan | 554 | 62.94% |
| SBI Long Term Advantage Fund – Series IV | 191 | 59.42% |
| BOI AXA Midcap Tax Fund – Series 1 | 74 | 50.45% |
| IDFC Tax Advantage (ELSS) Fund | 3,355 | 50.10% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/elss.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 ELSS funds have given a return in the range of 69-50%, which is a very good 1-year return.
Sectoral/thematic funds
A sectoral fund invests most of its total assets in companies belonging to a particular sector such as banking, pharma, infrastructure, etc. A thematic fund invests most of its total assets in companies belonging to a particular theme such as rural, digital, consumption, ESG, etc. The best sectoral/thematic funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| Sectoral funds | ||
| Quant Infrastructure Fund | 239 | 83.46% |
| ICICI Prudential Technology Fund | 7,386 | 76.19% |
| ICICI Prudential Commodities Fund | 655 | 73.33% |
| Thematic funds | ||
| Tata Digital India Fund | 4,194 | 76.06% |
| Quant ESG Equity Fund | 27 | 65.71% |
| Quant Consumption Fund | 39 | 55.94% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/sectoralthematic.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 3 sectoral/thematic funds have given a return in the range of 83-55%, which is a very good 1-year return.
International funds
An Indian international mutual fund invests most of its assets in the shares of companies that are headquartered and listed in foreign locations. Some examples of these companies include Facebook, Apple, Netflix, etc. that are headquartered in the US and listed on US stock exchanges. The best international funds of 2021 include:
| Scheme name | AUM (Rs. crores) | 1-year returns |
| Aditya Birla Sun Life Global Excellence Equity Fund of Fund – Retail Plan | 152 | 32.52% |
| DSP World Energy Fund | 177 | 30.76% |
| Motilal Oswal Nasdaq 100 Fund of Fund | 4,282 | 29.92% |
| Edelweiss US Value Equity Offshore Fund | 75 | 29.69% |
| Principal Global Opportunities Fund | 38 | 27.29% |
(Source: https://www.moneycontrol.com/mutual-funds/performance-tracker/returns/fund-of-funds.html)
Note: The above returns are as of 29th December 2021. The funds have been ranked based on 1-year returns. The returns are for direct plans with growth option.
The top 5 international funds have given a return in the range of 32-37%, which is a good 1-year return.
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