Investing in mutual funds is an indirect way to gain exposure to equity markets and/or other asset classes. A mutual fund is simply a pool of money pooled from investors who invest in different asset classes and managed by a dedicated fund manager. However, not all mutual funds can beat their benchmark indices, so it becomes important to gauge their past performance before investing your hard-earned money.
Although past performance does not necessarily mean a comparable level of performance in the future, this does not make it any less important to know. With that in mind, here is a list of 3 mutual funds that have posted high returns of over 40% (CAGR) over the last three years.
Quant Small Cap Fund
Quant Small Cap Fund, managed by Quant Money Managers Limited, is a small cap fund that invests in the stocks of companies ranked 251 in terms of total market capitalization, making it a high loss fund. The fund has the highest weighting (12.72%) in construction and engineering companies, up from 19.41% in September 2022.
The fund’s 3-year CAGR is an unbeatable 57.28%, all thanks to the multi-bagger who bounced back in the small-cap space after the outbreak. It has an AUM of INR 2,355 crore and maintains an expense ratio of 0.62 percent. The benchmark index of this fund is 250 – TRI.
Quant Infrastructure Fund
Another from Quant Fund Managers, Quant Infrastructure Fund is a thematic fund that focuses on the infrastructure sector and has a minimum AUM of INR 778 crore. Three of the top weighted companies in the portfolio are Ambuja Cements (NS:) (9.28%), Reliance Industries (NS:) (8.87%) and Adani Ports and Special Economic Zone Ltd (8.68%) (NS:).
Public Banks is the sector with the highest exposure in the portfolio, which is one of the reasons why the fund has grown its returns over the past 6 months. The last three-year CAGR of profitability is 44.66% while maintaining an expense ratio of 0.64%. It is a growth fund and the fund’s benchmark index is TRI
ICICI Pru Commodity Fund
ICICI Pru Commodities Fund, an asset management company from ICICI Prudential (LON: ), is also a thematic fund and its investments are focused on commodity-based businesses. In the year In the year As of November 2022, the fund holds iron and steel stocks with the highest weighting (31.12%), while construction and engineering stocks are second with a 30.07% weighting.
Talking about individual stocks, JSW Steel (NS: ), UltraTech Cement (NS: ) and Ambuja Cements are the top three holdings. The fund has delivered a 3-year CAGR of 44.1% and has a minimum AUM of Rs 738 crores. The expense ratio is a bit on the high side, at 1.07%, but it justifies the kind of returns the fund is offering. The -TRI is the fund’s benchmark index.
PS – TRI stands for Total Returns Index, which includes the portion of the return calculated from stocks, which is left over from the regular index. for example. The return of Nifty – TRI will be higher than Nifty because of the inclusion of dividends paid by companies in the previous calculation.