Published on: January 4, 2024
As the curtains close in 2023, it’s time to cheer on D-street as the Nifty50 index notches up a substantial 20% gain. Even more striking were the performances of the Nifty Midcap100 and Nifty Smallcap 100 indices, which surged by 46.56% and 55.62%, respectively.
In the wake of this bull run, investors, often opting for the relatively safer avenue of Mutual Funds over direct stock investments, are now keenly examining the performance of the top-performing Equity Mutual Funds.
Here is the list of the best-performing Mutual Funds in Large Cap, MidCap and SmallCap space:
Top-5 Large-Cap Mutual Funds
Top-5 Mid-Cap Mutual Funds
Top-5 Small-Cap Mutual Funds
Out of a vast array of 422 Equity funds, a select few managed to outshine their peers. The top 5 funds with the most impressive performances in 2023 were sectorial, carving their niche in an otherwise dynamic market.
Top-5 Equity Mutual Funds
The Aditya Birla SL PSU Fund is topping the charts, boasting a remarkable 59% return and an astounding 180% return over the past 3 years.
The Mahindra Manulife Small Cap Fund is securing the second position, showcasing a commendable 57.78% return, closely followed by the Nippon Power & Infra Fund with a solid 56.34% performance. Interestingly, the Nifty Infra Index and BSE Power index posted gains of 39% and 32%, respectively, in 2023.
While the investment universe is vast and diverse, we focus on equity-linked funds, the sectorial funds outperformed broader market funds. However, it’s imperative to shed light on the performance of Multi-Asset Allocation Funds, a category gaining traction among investors.
Multi-asset mutual funds in India have emerged as a versatile investment option, strategically distributing funds across asset classes such as equities, fixed-income securities, and sometimes even alternative investments like gold or real estate. These funds aim to provide investors with a balanced, diversified investment avenue, minimizing risk through strategic asset allocation.
Top-5 Multi-Asset Funds
For 2023, the top 4 Multi-Asset Allocation Funds stand out for their eye-catching performances.
UTI and SBI funds topped the table, but Nippon Fund is in third place, narrowly edging out ICICI Pru Fund. However, the true brilliance of the ICICI Pru Fund unfolds when examining their stellar 3-year and 5-year performances.
Though there has been a lot of talk about the Flexi-Cap Funds, let’s look at the top 5 performing funds of 2023.
Top-5 Flexi-Cap Funds
Now, the question for investors: Did your portfolio outshine these Mutual Funds in 2023?
If your answer is affirmative, it’s indeed an accomplishment. However, comparing a mere one-year performance with seasoned fund managers will disrespect them. True proficiency in portfolio management is demonstrated over a more extended period. If your portfolio has consistently outperformed for 3 and 5 years, you are undoubtedly on the right trajectory in managing your funds.
On the flip side, if your response is negative, it’s time to reevaluate your investment strategy. Elevating oneself in the investing journey requires continuous learning and adaptation. Definedge Securities offers a range of courses that can enhance your analytical skills.
Remember, mastering the art of analysis is an ongoing process, and the wisdom that comes with experience adds an invaluable dimension to your investing acumen.
If we have made you keen on investing in mutual funds, you must check our mutual fund analysis & investment tool – MFZone. From ratio analysis to peer comparison, asset allocation and a lot more. It is truly your own-stop solution.
Are you ready to review your performance?