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Last Updated : Sep 03, 2019 05:15 PM IST | Source:

These top 10 MF schemes beat benchmarks in August

Top 10 equity schemes that outperformed their benchmarks are Axis Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, DSP Mutual Fund Fund, and IDBI Mutual Fund.

Himadri Buch @himadribuch

Despite volatility in the equity market, many fund managers managed to beat their benchmark indices last month by giving positive returns.

Top 10 equity schemes that were able to outperform their benchmarks were  Axis Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, DSP Mutual Fund Fund, and IDBI Mutual Fund, according to Value Research, a mutual fund research firm.

The month that went by exhibited immense volatility as foreign portfolio investors continued to sell on enhanced surcharge.


However, in the last week of August, the government was forced to roll back enhanced surcharge on foreign portfolio investors (FPIs) soothing the sentiment in the equity market.

Foreign investors pulled out Rs 5,920 crore from the Indian capital markets in August.

Amid intermittent bouts of volatility in August, Nifty ended the month with a gain of 1.79 while Sensex rose 1.72 percent.

Apart from FPI selling shares, local factors such as weak auto sales number, GDP growth at a six-year low and global factors such as escalating trade war between the US and China also weighed on Indian indices.

Amongst all, the highest return in August was delivered by Axis Small Cap Fund-Direct Plan. This scheme gave 5.07 percent returns, while in comparison, the scheme’s benchmark S&P BSE Small-Cap TRI (Total Return Indices) gave a negative return of 1.04 percent.

Axis Small Cap Fund was ranked first among 21 schemes in the small-cap category.

Equity funds that generate higher returns compared to several equity benchmarks over a period of time offer a better risk-reward ratio and their fund managers tend to have superior stock selection skills.

Final Fund Table Returns

While the performance of the mutual fund scheme is a function of dividend as well as the capital gains made on investments, returns on the Price Return Index of these benchmarks are considered without any dividend income.

Total Return Index, when measuring performance, reflects the actual return on an investment which includes capital gains and dividends paid by the underlying companies over a given evaluation period.

Hence, Total Return Index is viewed as a strong measure of an investment’s overall performance and an apt measure to reflect the true alpha created by mutual funds over their benchmarks.

From February 1, 2018,  the Securities and Exchange Board of India (SEBI) has mandated that all mutual fund houses should compare their schemes against total return indices (TRI).

The second-best performing fund was Motilal Oswal Midcap 30 Fund-Direct Plan. It fetched 3.72 percent returns in the last month, as against negative 1.12 percent return delivered by the scheme’s benchmark S&P BSE Mid Cap TRI.

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First Published on Sep 3, 2019 04:12 pm
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