Most of the top equity mutual fund (MF) schemes — which cumulatively account for a fourth of the industry’s assets — have done well this year compared to the benchmark BSE Sensex and the National Stock Exchange’s Nifty.
The average return for the top 10 equity diversified schemes (as of September 26) is 22.34 per cent. In comparison, the Sensex and the Nifty
are up 18 per cent and 20 per cent (as of September 26) on a year-to-date basis. Their large assets under management (average Rs 16,000 crore) haven’t impacted their performance.
These 10 schemes are considered to be the most marquee offerings as they are managed by the country’s top fund managers. Two schemes — Axis Long Term Equity Fund
and Kotak Select Focus Fund
— have returned in excess of 25 per cent to the investors.
Though returns this year have been on the higher side, fund managers have been advising investors to tone down their recent expectations. They say that expecting 20 per cent-plus returns may not be possible and that investors should be ready if there is a fall. According to them, 10-12 per cent returns are something one should expect. However, they maintain that the existing systematic investment plans should not be stopped and investors must avoid pouring lump sum money at this juncture.