Top Funds Analysis as on April 6, 2024:
Commentary:
1. From this week onwards, top funds analysis is done based on 1Y and 1M basis both for all funds together, equity only, and hybrid only. This is to assist more funds selection for investments through the volatile market conditions now and ahead.
2. As usual, in the top 50 analysis, the values above the average are highlighted. The funds with all above average values across 1M thru 1Y timelines are marked green, meaning they are more favorable for new investment given consistency of above average performance in all timelines from 1M thru 1Y.
From this perspective, the following from the all fund types top 50 from 1M performance, have emerged favorable:
- Mirae Asset S&P 500 Top 50 ETF FoF (Foregin equity).
Though there is some recovery of equity through this week, we can see that domestic equity funds are yet to appear on top 1M 50 with above average performance.
3. But, when we look at the top 50 based on 1Y performance, some more are popping up with consistent performance:
- Quant Infrastructure Fund
- Quant Value Fund
- Mirae Asset NYSE FANG+ETF FoF (Foreign equity)
- Bandhan Infrastructure Fund
4. Bottom 50 funds analysis for 1M reconfirm that many of the top performing equity funds for the last one year are still in the bottom 50, meaning they are yet to catch up with all the corrections that have gone in, though there is some rebound.
5. Bottom 50 for 1Y basis, do warn us that we should not get into underperforming funds, while the overall annual performance average of all funds across all fund types still looks attractive for investments.
6. When we do the top 50 funds analysis within equity funds only, both for 1M and 1Y, the same funds appear as investment worthy as in the all fund types top 50 analysis. This is just a reconfirmation and there is no boundary condition popping up by considering equity funds only.
7. Since the interest rates are likely to fall ahead (may be 4-6 months later), hybrid funds could become more attractive along with equity funds. Hence, top 50 funds analysis is done for hybrid funds both on one 1M and 1Y basis.
On 1M basis, the following funds have shown better than average performance for all timelines from 1M thru 1Y:
- Axis Retirement Savings Fund - Dynamic Plan
- Quant Multi Asset Fund
- Axis Retirement Savings Fund - Aggressive Plan
- UTI Multi Asset Allocation Fund
- Bank of India Mid and Small Cap Equity & Debt Fund
- ICICI Prudential Multi Asset Fund
- Baroda BNP Paribas Multi Asset Fund
8. On 1Y basis, the following hybrid funds have shown above average performance in all timelines from 1M thru 1Y:
- ICICI Prudential Retirement Fund - Hybrid Aggressive Plan
- Bank of India Mid & Smal Cap Equity & Debt Fund
- Quant Multi Asset Fund
- UTI Multi Asset Allocation Fund
- Quant Absolute Fund
- Axis Retirement Savings Fund - Dynamic Plan
- Baroda BNP Paribas Aggressive Hybrid Fund
Please remember that hybrid funds will underperform pure equity funds during bullish phase and can do better through the correction. However, please note that recent correction through March did not put hybrid funds ahead of equity funds though, this is because the aggressive equity portion in these hybrid funds corrected equally badly.
9. Since Commodity funds are attractive now a days as a replacement for the fixed deposits, top 50 analysis on 1M basis is relevant. The following funds showed better than average perforamnce for all timelines from 1M thru 1Y:
- Aditya Birla Sun Life Gold Fund
- Kotak Gold ETF
- HDFC Gold Fund
10. Debt funds top 50 analysis can be skipped as the time of debt funds has not yet arrived, ahead of commodity funds.
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