In a sea of underperforming global markets, India has come out on top this year. But while domestic benchmark indices have gained 5 percent year-to-date, gains in equity mutual funds have been stronger. The best equity funds of 2022 gave more than 70% returns. Here’s an overview of what’s happened in the equity MF space in terms of performance.
Among the more than a dozen equity fund categories, 2022 was the top PSU fund with an average gain of 27+ percent. This is after the category averaged a 36.6 percent gain in 2020, after falling to 6 percent in 2020.
Banking sector equity mutual funds have come in at No. 2 so far in 2022, with an average return of nearly 22 percent. In 2021, this category reached 15 percent, and in 2020, it lost an average of 5 percent.
Infrastructure sector funds came in at No. 3 with an average return of nearly 12 percent. In the year The gain in 2022 is above the 51% average return in 2021 and below the 10% return in both 2019 and 2020. Consumer funds gained 8.8 percent in the 4th slot, while value-oriented funds returned 6.5 percent in the 5th slot. In 2022. Here’s a chart of the best-performing equity fund categories (on the basis of year-to-date returns).
Best Equity Funds of 2022
In the huge fund universe of equity-oriented schemes, the space is divided into actively managed and passively managed offerings. Actively managed funds are where the fund manager takes the investment decisions themselves. Considering the positive gains recorded by PSU, infrastructure and thematic offerings, the top performers in this segment are led by ICICI Pru Infrastructure, SBI PSU, ABSL PSU, Quant Quantamental, Invesco India PSU, ICICI Pru India Opportunities and HDFC Infrastructure. They have delivered 20 to 32 percent YTD. Check out the top-5 in the chart below.
On the passively managed equity fund side, the portfolio is based on a basket of stocks in an index/ETF, with the top performers earning the highest returns. The Nippon India ETF Nifty PSU Bank BS has recorded an excellent return of 74 percent, closely followed by the Kotak Nifty PSU Bank ETF. ICICI Pru Bharat 22 FoF and Bharat 22 ETF closed over 29 percent each. CPSE ETF is also close with returns of around 29 per cent. The ICICI Pru Nifty FMCG ETF has entered the top-10 privately managed fund club, led by banking-focused products. Check out the top-5 in the chart below.
The worst equity funds of 2022
Just like the highs, there are the lows. In the year The equity fund space in 2022 YTD has its share of duds, most of which are from the global equity fund side. While this fund category delivered double-digit percentage returns in 2019, 2020 and 2021, the sentiment turned sour in 2022.
Leading this rather unpleasant list is Invesco India – Invesco Global Consumer, which has declined over 36 per cent NAV. Edelweiss US Tech was second, down 34 percent, followed by PGIM India Emerging Markets, Mirae Asset NYSE FANG+ ETF FoF and PGIM India Global Equities. Mirae Asset NYSE FANG+ ETF, Nippon India Taiwan, Franklin India Feeder Franklin US and Kotak Global Innovation FoF also lost in the 27-34 percent range. Here are the details of the worst five equity funds this year.
Readers should note that by equity fund category, IT/technology funds were the worst of the lot with an average YTD loss of 22.6 percent, followed by global equity funds (down 12.8 percent), sector pharma funds (down 9.4 percent) and thematic ESG funds (down 2 percent). ).