Portfolio Pacesetters: 14 Equity Funds Blaze a 30% CAGR Trail

Image Source: Tickertape

India's equity mutual fund industry is experiencing a spectacular boom as a record 14 equity mutual funds have produced a scintillating Compound Annual Growth Rate (CAGR) of over 30% over the past three years. This spectacular upturn is the result of the phenomenal momentum in Indian equities driven by robust corporate earnings, sectoral winds, and sustained investor demand.

Top Performers:

Motilal Oswal Midcap Fund topped the league with a 35.39% CAGR, followed by Bandhan Small Cap Fund at 35.18% and Motilal Oswal Large & Midcap Fund at 33.64% over the last three years.
Some of the other top funds to have crossed the 30% CAGR barrier are ITI Small Cap Fund (32.36%), HDFC Mid-Cap Opportunities Fund (32.15%), Invesco India Smallcap Fund (31.30%), and Quant Small Cap Fund (30.61%).
Nippon India Growth Fund and Nippon India Multi Cap Fund also joined the elite club, returning 30.50% and 30.10% CAGR respectively.

Thematic and Sectoral Outperformance:

Thematic schemes like SBI PSU Fund (38.59% CAGR) and Aditya Birla SL PSU Equity Fund (37.12% CAGR) have fared better, illustrating the public sector and infrastructure theme reversal.
Infrastructure sector funds such as ICICI Pru Infrastructure Fund (34.48%) and LIC MF Infra Fund (33.91%) have also performed well.

Small and Midcap Surge:

Small and midcap funds take the top-gainer position, indicating strong growth in India's midcap and small-cap segment companies.

Consistency Counts:

Some funds like Bandhan Core Equity Fund, Edelweiss Mid Cap Fund, and HDFC Small Cap Fund have done better on three- and five-year time frames.

Investor Takeaway:

While past performance is outstanding, analysts recommend that investors take a view of their investment horizon and risk appetite before deciding because greater returns are typically associated with greater volatility.

"Motilal Oswal Midcap Fund posted the highest 35.39% return in three years, yet small and midcap funds continue to rule the performance charts."

Source: The Economic Times, Angel One, Groww, Tickertape