3 Mutual Funds with Over ‘40% CAGR’ Gains in 3 years!
Investing in mutual funds is an indirect way to take exposure to equity markets and/or other asset classes. A mutual fund is simply a pool of funds, collected from investors that is invested into various asset classes and is managed by a dedicated fund manager. However, not all mutual funds are able to beat their benchmark indices, therefore it becomes imperative to gauge their past performance before putting in your hard-earned money.
Although past performance does not necessarily mean an equivalent level of performance in the future, that does not make it any less important to know. In that vein, here’s a list of 3 mutual funds that have delivered a lucrative return of over 40% (CAGR) for 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 stocks of companies ranking 251st onwards in terms of full market capitalization, making it a riskier fund with high drawdowns. The fund has the highest weightage (12.72%) in the construction and engineering companies, which was even higher, at 19.41% in September 2022.
The 3-year CAGR of the fund is an unmatched 57.28%, all thanks to the recent multibagger returns in the small-cap space after the pandemic. It has an AUM of INR 2,355 crores and carries an expense ratio of 0.62%. The benchmark index for this fund is 250 – TRI
Quant Infrastructure Fund
Another one from Quant Money Managers, Quant Infrastructure Fund is a thematic fund that focuses on the infrastructure sector, having a small AUM of INR 778 crores. The top three of the highest 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:).
The sector with the highest exposure in the portfolio is public banks, which is one of the reasons that the fund was able to boost its returns in the last 6 months. The last three-year CAGR stands at a lucrative 44.66%, and it carries an expense ratio of 0.64%. It is a growth fund and the benchmark index for the fund is – TRI
ICICI Pru Commodities Fund
ICICI Pru Commodities Fund, from ICICI Prudential (LON:) Asset Management Company, is also a thematic fund and the investments are focused on commodity-based businesses. As of November 2022, the fund held Iron & steel stocks in the highest weightage (31.12%), while construction and engineering stocks took the second spot with 30.07% weightage.
Talking about individual stocks, JSW Steel (NS:), UltraTech Cement (NS:), and Ambuja Cements are three of the top holdings. The fund has delivered a 3-year CAGR of 44.1% and has a small AUM of 738 crores. The expense ratio is a bit on the higher side, at 1.07%, but that justifies the kind of returns that the fund has been delivering. The – TRI is the benchmark index of the fund.
PS – TRI stands for Total Returns Index, which includes dividends from the stock in the return calculation, that is omitted from a normal index. For eg. The return of Nifty – TRI would be higher than Nifty due to the inclusion of the dividends paid by companies in the calculation of the former.
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Investing in mutual funds is an indirect way to take exposure to equity markets and/or other asset classes. A mutual fund is simply a pool of funds, collected from investors that is invested into various asset classes and is managed by a dedicated fund manager. However, not all mutual funds are able to beat their benchmark indices, therefore it becomes imperative to gauge their past performance before putting in your hard-earned money.
Although past performance does not necessarily mean an equivalent level of performance in the future, that does not make it any less important to know. In that vein, here’s a list of 3 mutual funds that have delivered a lucrative return of over 40% (CAGR) for 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 stocks of companies ranking 251st onwards in terms of full market capitalization, making it a riskier fund with high drawdowns. The fund has the highest weightage (12.72%) in the construction and engineering companies, which was even higher, at 19.41% in September 2022.
The 3-year CAGR of the fund is an unmatched 57.28%, all thanks to the recent multibagger returns in the small-cap space after the pandemic. It has an AUM of INR 2,355 crores and carries an expense ratio of 0.62%. The benchmark index for this fund is 250 – TRI
Quant Infrastructure Fund
Another one from Quant Money Managers, Quant Infrastructure Fund is a thematic fund that focuses on the infrastructure sector, having a small AUM of INR 778 crores. The top three of the highest 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:).
The sector with the highest exposure in the portfolio is public banks, which is one of the reasons that the fund was able to boost its returns in the last 6 months. The last three-year CAGR stands at a lucrative 44.66%, and it carries an expense ratio of 0.64%. It is a growth fund and the benchmark index for the fund is – TRI
ICICI Pru Commodities Fund
ICICI Pru Commodities Fund, from ICICI Prudential (LON:) Asset Management Company, is also a thematic fund and the investments are focused on commodity-based businesses. As of November 2022, the fund held Iron & steel stocks in the highest weightage (31.12%), while construction and engineering stocks took the second spot with 30.07% weightage.
Talking about individual stocks, JSW Steel (NS:), UltraTech Cement (NS:), and Ambuja Cements are three of the top holdings. The fund has delivered a 3-year CAGR of 44.1% and has a small AUM of 738 crores. The expense ratio is a bit on the higher side, at 1.07%, but that justifies the kind of returns that the fund has been delivering. The – TRI is the benchmark index of the fund.
PS – TRI stands for Total Returns Index, which includes dividends from the stock in the return calculation, that is omitted from a normal index. For eg. The return of Nifty – TRI would be higher than Nifty due to the inclusion of the dividends paid by companies in the calculation of the former.
