FY15 turned out to be a significant year for the Indian mutual fund industry, with record inflows into equity funds and outstanding returns for investors. Funds from small and mid cap category outperformed with returns in excess of 80%. Constant rise in equity markets since the start of 2014, and betting on stocks that could benefit from revival of Indian economy helped fund managers generate strong returns.
According to the data from Value Research in the last one year, on an average, large cap funds gave returns of around 32.43%, while large and mid cap funds provided 42.77% returns. But mid and small cap funds were able to generate returns of 67.94% on an average in last one year. In the small and mid cap segment, Sundaram SMILE Fund was the standout performer as the fund managed to post returns over 105.55% in the last one year. It was one of Sundaram’s flagship funds in the mid and small cap segment.
In the large and mid cap category Birla Sun Life Special Situation Fund and Franklin India Opportunities were top performers giving return of 64.71% and 57.59% respectively in the last one year. Mahesh Patil, CIO at Birla Sun Life Asset Management Company (AMC) said, “In the last one year, our broad call on revival in the economy went right. During the start of the 2014, we had started positioning our portfolios in the sectors which could benefit from the recovery in the economy. Investments into several sectors such as banks, capital goods and auto has helped deliver better returns.”
L&T Equity Fund and IDBI India Top 100 Equity Fund were top performers in the Large Cap category giving returns of 48.21% and 45.43% respectively. IDBI India Top 100 Equity Fund, is a new entrant and will complete three years in May. Since its launch in May 2012, the fund has given returns of 26.69%
Many fund managers believe markets are likely to continue their upward journey in 2015 but with some corrections. “We have seen markets correcting in the last few weeks. We are sure about positive returns going forward, but investors should not expect the kind of returns seen in the last one year,” concluded a fund manager from top fund house.