2020 ends in positive for mutual funds

Most of the year, equities, except for a few sectors remained hurt due to pandemic coronavirus. Equity mutual funds disappointed the investors, who in panic, preferred to redeem their money. Equity mutual funds saw record breaking monthly outflows this year as investors started to lose hope after over two years of under performance by the equity schemes. However, as we came closer to the end of this year, positive news about development of covid vaccines cheered equities soon. In fact the major stock market indices broke their records to reach all time high levels in 2020.

Mid and small cap mutual funds which were laggards at the beginning of the year, bounced back to become the best performing categories across equity mutual funds at the end of the year. Some analysts believe the next year, 2021 will be the year for mid and small caps to outshine the stock markets.

Mutual fund investors who showed patience and continued with their investments, earned decent returns as the stock markets soared. 86% of the equity schemes ended the year with double digit returns. Equity mutual funds rose as high as up to 76% in the year about to end soon. Quant Small Cap Fund topped the chart with 76% returns in 2020, followed by BOI AXA Small Cap Fund (52%) and PGIM India Midcap Opportunities (49%).

Here is a list of top three mutual funds which were one year toppers in large cap, mid cap, small cap, large & mid cap, multi cap and tax saving or ELSS fund categories. Schemes holding assets below Rs. 100 crore were not considered.

Fund Name, 1-Yr Return, Net Assets (Rs. crore)

Large Cap Funds

Canara Robeco Bluechip Equity Fund, 20.74%, 1,122

Axis Bluechip Fund, 17.11%, 20,480

UTI Mastershare Fund, 16.49%, 7,008

Large & Mid Cap Funds

Canara Robeco Emerging Equities Fund, 23.44%, 6,880

Axis Growth Opportunities Fund, 22.87%, 1,907

Union Large & Midcap Fund, 21.85%, 209

Mid Cap Funds

PGIM India Midcap Opportunities Fund, 49.13%, 471

UTI Mid Cap Fund, 32.50%, 4,491

SBI Magnum Midcap Fund, 28.92%, 4,113

Small Cap Funds

Canara Robeco Small Cap Fund, 40.79%, 572

Principal Small Cap Fund, 37.02%, 238

Edelweiss Small Cap Fund, 34.44%, 585

Multi Cap Funds

PGIM India Diversified Equity Fund, 34.52%, 398

Parag Parikh Long Term Equity Fund, 30.51%, 5,757

UTI Equity Fund, 29.28%, 13,546

Tax Saving or ELSS Funds

BOI AXA Tax Advantage Fund, 30.01%, 351

Canara Robeco Equity Tax Saver Fund, 24.75%, 1,333

Mirae Asset Tax Saver Fund, 19.83%, 5,044