Since the 2019 elections, the Indian stock market has undergone significant changes, driven by various government policies and economic reforms. The NDA-led government has introduced numerous initiatives such as retrospective tax repeal, Production Linked Incentive (PLI) schemes, telecom packages, and power sector reforms, among others. These reforms have created a favourable business environment, benefiting several sectors and attracting mutual fund investments. This article analyses the top-performing mutual funds since the 2019 elections, focusing on their returns, management, and risk metrics.
The table below showcases the top five mutual funds based on their five-year returns. Interestingly, four out of the five funds have a significant focus on small and mid-cap companies. The Quant Small Cap Fund(G) leads the pack with a stellar 39.65% five-year CAGR, followed by the Quant Infrastructure Fund(G) with a CAGR of 35.03%. However, over the shorter period, the Quant Infrastructure Fund has outperformed the top five funds.
| Funds | Return (%)1 yr | Return (%)5 yrs | Return (%)10 yrs | Large Cap(%) | Mid Cap(%) | Small Cap(%) | Highest Sector |
| Quant Small Cap Fund(G) | 66.96 | 39.65 | 20.84 | 25.67 | 11.88 | 53.96 | Financials |
| Quant Infrastructure Fund(G) | 80.75 | 35.03 | 20.48 | 48.15 | 15.59 | 21.54 | Energy |
| Quant Mid Cap Fund(G) | 74.28 | 33.1 | 20.7 | 27.94 | 61.62 | 1.52 | Energy |
| Quant ELSS Tax Saver Fund(G) | 59.86 | 31.8 | 24.79 | 68.98 | 15.3 | 10.7 | Energy |
| Bank of India Small Cap Fund-Reg(G) | 47.36 | 31.21 | – | 7.92 | 12.27 | 78.45 | Financials |
| Funds | Fund Manager | AUM (Rs crore) | Expense Ratio (%) | Inception Date | NAV | 52 WeekHigh (NAV) | 52 WeekLow (NAV) |
| Quant Small Cap Fund(G) | Ankit Pande | 20,164.10 | 1.64 | Oct 16, 1996 | 252.24 | 254.78 | 152.02 |
| Quant Infrastructure Fund(G) | Ankit Pande | 3,187.60 | 1.91 | Aug 26, 2007 | 41.3 | 42.05 | 23.03 |
| Quant Mid Cap Fund(G) | Ankit Pande | 6,920.20 | 1.77 | Feb 26, 2001 | 233.96 | 238.81 | 135.43 |
| Quant ELSS Tax Saver Fund(G) | Ankit Pande | 9,360.90 | 1.76 | Apr 13, 2000 | 381.6 | 387.44 | 240.72 |
| Bank of India Small Cap Fund-Reg(G) | Dhruv Bhatia | 1,052.40 | 2.16 | Dec 19, 2018 | 41.83 | 42.06 | 28.3 |
It is commendable that out of the top five funds, the top four belong to the Quant Mutual Fund house and are managed by the same individual, Mr. Ankit Pande. This suggests a high level of expertise and consistent performance across different themes and strategies. The diverse nature of these funds, ranging from size-oriented to sector-oriented, and including a tax-efficient fund, demonstrates Mr. Pande’s versatility and capability in fund management.
It is also worth mentioning that all the top four funds managed by Quant Mutual Fund house have an expense ratio lower than that of the Bank of India Small Cap Fund, indicating efficient management of fees.
| Funds | Alpha (%) | Sharpe | Sortino | Beta | Standard Deviation (%) |
| Quant Small Cap Fund(G) | 36.06 | 3.2 | 4.52 | 0.93 | 16.39 |
| Quant Infrastructure Fund(G) | 41.88 | 3.29 | 5.21 | 1.12 | 18.73 |
| Quant Mid Cap Fund(G) | 40.75 | 3.6 | 5.67 | 0.91 | 15.77 |
| Quant ELSS Tax Saver Fund(G) | 30.64 | 3.32 | 5.17 | 0.96 | 14.34 |
| Bank of India Small Cap Fund-Reg(G) | 26.71 | 2.91 | 4.29 | 0.66 | 13.17 |
Alpha measures a fund’s performance against a benchmark. A positive alpha indicates outperformance. The Quant Infrastructure Fund(G) has an impressive alpha of 41.88%, and the Quant Mid Cap Fund(G) follows closely with 40.75%. The top four Quant mutual funds have an alpha of more than 30%, showcasing robust performance.
The Sharpe ratio evaluates risk-adjusted returns. The Quant Mid Cap Fund(G) leads with a Sharpe ratio of 3.6, indicating the highest returns per unit of risk. Similarly, Quant Mutual Fund house has Sharpe ratios above 3 for every fund, unlike the Bank of India Small Cap Fund, which has a Sharpe ratio of 2.91.
The Sortino ratio, focusing only on downside risk, provides a more accurate measure of risk-adjusted returns. The Quant Mid Cap Fund(G) tops with a Sortino ratio of 5.67, followed by the Quant Infrastructure Fund(G) at 5.21, suggesting effective downside risk management with high returns.
Beta measures a fund’s volatility compared to the market. The Bank of India Small Cap Fund-Reg(G) has the lowest beta at 0.66, indicating lower market volatility. In contrast, the Quant Infrastructure Fund(G) has the highest beta at 1.12, suggesting higher market-related volatility.
Standard deviation reflects total risk. The Quant Infrastructure Fund(G) has the highest standard deviation at 18.73%, indicating higher volatility. The Bank of India Small Cap Fund-Reg(G) has the lowest at 13.17%, showing relatively lower risk.
Conclusion
Since the 2019 elections, the Indian mutual fund landscape has been shaped by various government policies and economic reforms, creating a favourable environment for investment. The performance of mutual funds, particularly those managed by Quant Mutual Fund house, highlights the significant returns investors can achieve by choosing well-managed funds.
As the data suggests, analysing the funds with proper due diligence may help in achieving superior returns. Investors must understand the current policy reforms and new policies that are being rolled out and their potential impact on the companies.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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