11 mins read . 03 Nov 2023
It was a volatile trading month with FPI outflows at $2.95 billion in the month of October 2023. After showing a lot of promise in the 4 months to August, the foreign portfolio investors (FPIs) were net sellers to the tune of $4.5 billion in equities in September and October 2023 combined. Equity markets surely got spooked in October 2023 due to the combination of geopolitical risks in West Asia and rising bond yields in the US. For the month of October 2023, the Nifty 50 fell sharply by -2.85%, while the Nifty Next-50 index fell by -2.26% lower. Even the smaller stocks were not spared. The Mid-Cap 100 index closed with -4.10% losses while the Small Cap 100 index fell -0.77%. To sum it up, equity markets in October 2023 were all about global headwinds. Let us look at equity markets in the month of October 2023, through the lens of different types of equity funds.
In this segment of equity funds, we look at the October 2023 performance of large cap funds, ELSS funs and equity index funds. These are generic large cap funds with a predominance of large cap stocks. All these rankings are based on NAVs as on 31sts October 2023. While the returns are available for 1 year, 3 years and 5 years, the rankings are based on 5 year rankings to give a longer term perspective. For simplicity we focus on Direct Plans.
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Canara Robeco Blue-Chip (G) | 8.480% | 18.925% | 16.730% |
Baroda BNP Paribas Large (G) | 10.166% | 19.504% | 16.291% |
Kotak Bluechip Fund (G) | 8.996% | 19.905% | 15.915% |
BSE 100 (TR) Index | 7.726% | 20.188% | 14.399% |
Data Source: Morningstar |
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Tax Plan (G) | 9.336% | 34.694% | 27.026% |
BOI Tax Advantage (G) | 14.728% | 24.239% | 21.334% |
Bandhan Tax Saving ELSS (G) | 15.221% | 30.525% | 18.681% |
BSE 200 (TR) Index | 7.877% | 20.951% | 14.958% |
Data Source: Morningstar |
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
DSP Nifty-50 Equal Weight (G) | 12.473% | 26.062% | 15.228% |
Nippon India Sensex Fund (G) | 6.369% | 18.375% | 14.202% |
ICICI Pru Sensex Fund (G) | 6.218% | 18.230% | 14.161% |
Benchmark Index | N.A. | N.A. | N.A. |
Data Source: Morningstar |
One of the big questions is whether the idea of offering higher leeway to fund managers to manage the portfolio improves performance. Frankly, there is little evidence to show that fund manager discretion improves performance over rule-based allocation across capitalization stories. Once again, these rankings are based on NAVs as on 31st October 2023. While the returns are available for 1 year, 3 years and 5 years, the rankings are based on 5 year rankings to give a longer term perspective. For simplicity we focus on Direct Plans.
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Active Fund (G) | 10.636% | 31.804% | 24.767% |
Mahindra Manulife Multi (G) | 18.315% | 30.839% | 22.229% |
Nippon India Multi Cap (G) | 23.157% | 37.810% | 19.103% |
BSE 500 (TR) Index | 9.634% | 22.012% | 15.353% |
Data Source: Morningstar |
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Flexi Cap Fund (G) | 12.296% | 32.814% | 24.744% |
PPFAS Flexi Cap Fund (G) | 21.722% | 24.370% | 21.850% |
JM Flexi Cap Fund (G) | 24.479% | 30.483% | 19.961% |
BSE 500 (TR) Index | 9.634% | 22.012% | 15.353% |
Data Source: Morningstar |
Finally, we come to the alpha stories within equity, which is about mid-caps and small caps. We are not considering sectoral and thematic funds as they can be tough to compare. All these rankings are based on NAVs as on 31st October 2023. While the returns are available for 1 year, 3 years and 5 years, the rankings are based on 5 year rankings to give a longer term perspective. For simplicity we focus on Direct Plans.
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Mid-Cap Fund (G) | 22.121% | 38.866% | 26.006% |
PGIM India Mid-Cap Fund (G) | 6.572% | 30.064% | 24.195% |
MOSL Midcap Growth (G) | 19.734% | 36.637% | 23.019% |
BSE Midcap (TR) Index | 24.625% | 29.476% | 17.721% |
Data Source: Morningstar |
Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
Quant Small Cap Fund (G) | 32.050% | 45.106% | 29.616% |
Nippon Small Cap Fund (G) | 32.327% | 44.289% | 26.616% |
Axis Small Cap Fund (G) | 23.061% | 33.631% | 26.532% |
BSE Midcap (TR) Index | 29.221% | 36.501% | 22.180% |
Data Source: Morningstar |
Here are some key takeaways from the October 2023 mutual fund rankings.
In October 2023, it was only the short term equity fund returns that got impacted. The longer term returns are almost intact. However, the concerns over the rising tide of global headwinds would continue to be a major issue in November 2023 also.
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