16 Mutual Funds gave more than 30% CAGR in Three Years
In the last three years, around 16 equity mutual fund schemes have delivered their investors quite impressive yearly compounded average returns with above 30% CAGR. An analysis has been done on daily rolling returns of 221 equity schemes available in markets continuously past 3 years.
Among these top-performing funds, two small-cap schemes stood out with the highest returns. Quant Small Cap Fund led the list with a 43.87% CAGR, closely followed by Nippon India Small Cap Fund at 35.43% CAGR, both based on daily rolling returns over three years.
Another Fund that performed well in the last 3 years is the Quant ELSS Tax Saver Fund, which is an ELSS or tax-saving fund, recorded a 34.09% CAGR. Two additional small-cap funds, the Bank of India Small Cap Fund and Canara Robeco Small Cap Fund, also provided CAGRs of 34.07% and 34.04%, respectively.
Two other offerings of Quant Mutual Fund that is Quant Mid Cap Fund and Quant Flexi Cap Fund have achieved impressive CAGRs of 33.55% and 32.96% respectively on daily rolling returns basis. In addition, four funds in the small-cap categories returned between 31.37% to 31.97% annually and these funds are Edelweiss Small Cap Fund, Tata Small Cap Fund, HSBC Small Cap Fund, and Kotak Small Cap Fund.
Quant Active Fund also reported decent growth with a CAGR of 31.17%, while ICICI Prudential Smallcap Fund came in close with its CAGR of 30.73% on the basis of daily rolling returns. One of the oldest and the largest small-cap funds namely SBI Contra Fund, reported a CAGR of 30.62%. Motilal Oswal Midcap Fund and Bandhan Small Cap Fund reported CAGRs of 30.45% and 30.15% respectively.
While these 16 equity mutual funds provided over 30% annualized returns, other funds in the same period generated CAGRs from 10.79% to 29.65%, all calculated on daily rolling returns from October 29, 2021, to October 29, 2024. All types of equity mutual funds, both regular and growth options, were analyzed.
Interestingly, rolling returns a mean method of returns over any period of time will always give consistent measures for funds performance under a variety of market conditions. Returns, computed on a rolling basis, allow evaluation of performance under both positive and negative market trends, therefore giving some indication of how a scheme’s performance varies over time. Besides being based on daily and monthly intervals, rolling returns can also be on yearly, hence giving the investor an annualized view of his return over the specified period.
This exercise would portray those performers, but while the analysis and serving as only a guide is not investment advice; however, investors can refer to the risk appetite for them to consider before making such an important decision.
