- Sensex returns only 4% in 2022
Mumbai: Investors worried about record-breaking inflation in 2022, rising interest rates, the Russia-Ukraine war and the possibility of a recession in the global economy, including the US. As a result, there was a lot of volatility in the equity market and investors could not earn. Despite reaching new highs, only 4% returns were found in Sensex and Nifty. While Midcap gained only 1% and Smallcap Index lost 2%. Broadly speaking, in 2022, only select sectors like banking, defence, auto, FMCG saw a rise in stocks, while most stocks in other sectors declined. In the recessionary environment, it was challenging for mutual fund managers to earn from the market, but even in this difficult situation, many fund managers were successful in getting returns with their understanding and cleverness and by providing good returns to their investors Continued the process of creating wealth.
In this article ‘enavabharat.com’ is giving information about 25 best performing Equity Mutual Funds during 2022. Which have provided investors a profit of 6% to 18% over the benchmark in the last year. His returns were best in his category as well.
Nippon, HDFC, ICICI and SBI top in largecaps
Nippon India Largecap Fund, awarded with the ‘Navbharat Platinum Award-2022’ in the Largecap Fund category, has given the highest return of 12.4%. The Fund under Management (AUM) of this scheme of Nippon India Mutual Fund is around Rs 13,000 Crore and has given an Average Annual Return of 14.3% in the last 10 years as well and has created decent wealth for the investors. HDFC Top 100 Fund is in second place. It has given a return of 11.4% in 2022 and an average annual return of 12.8% in the last 10 years. Largecap fund schemes invest mainly in Sensex and Nifty based bluechip companies. ICICI Prudential Bluechip Fund has been in the third place in this category, it has given 7.8% returns in 2022. While SBI Bluechip Fund has been at the fourth position. With an AUM of over Rs 35,600 crore, it has given 5.6% returns in 2022. This scheme of the country’s largest fund house SBI (SBI MF) has created good wealth for investors by giving a good annual return of 14.4% in the last 10 years.
SBI in smallcaps, Quant outperforms in tax savings
ICICI Prudential and Tata Mutual Fund’s schemes have given the maximum gain of more than 12% in 2022 in the largecap and midcap category. While in the midcap fund category, Quant Midcap Fund has also provided a profit of 18.5%. In the smallcap fund category, Quant Smallcap Fund with an AUM of Rs 2580 crore has given a gain of 10.5%, while ‘Navbharat Platinum Award-2022’ awardee ‘SBI Smallcap Fund’ with an AUM of Rs 15,300 crore has given a gain of 10.5%. has given a return of 9.5%. Nippon India Smallcap Fund stood at the third position with a return of 7.5%. In the tax saving ELSS category, Quant Tax Plan is the topper with a healthy return of 13.3%.
Despite the global challenges, the Indian economy is in a much better shape. Credit demand, capital investment and tax collections are encouraging. Inflation is expected to decline gradually in 2023, but the global situation is still worrying. We expect equity markets to remain highly volatile in the early months of 2023 due to inflation concerns, monetary policy and other global factors. The general budget 2023 will also decide the further course of the market. Talking about investment opportunities in 2023, it is a good time to invest in debt mutual funds. Fixed income investments are looking attractive due to high yields. Target maturity funds are also good for medium and long term investments. One should continue investing in equity funds despite the volatility in the equity market as India’s long term outlook remains positive. New investors can start investing with Conservative Hybrid Funds. Flexi cap and Balanced Advantage funds are also good options.
-D.P. Singh, Deputy Managing Director, SBI Mutual Fund
In 2022, domestic demand oriented sectors such as banking, consumer products, industrial, etc. performed better than global demand sectors. We remained overweight in these domestic demand driven sectors. Which benefited us and the investors got better returns. Limited returns should be expected for 2023 as the way global uncertainties and interest rates trend continues, huge returns cannot be expected. In this situation, flexicap or multicap is a good option for the retail investor for the next 1-2 years. At the fund house level, we will manage the fund portfolio under our investment strategy of ‘Growth at Reasonable Price’.
Ashutosh Bhargava, Head-Equity Research, Nippon India Mutual Fund
As we saw last year, now even in 2023, the fear of a global recession is likely to keep the equity market volatile. Hence there is a need to be careful in choosing the right mutual fund category and schemes. We recommend Balanced Advantage Fund for 2023, which offer stability through their dynamic allocation across equity and debt. Among debt mutual fund schemes, one can invest in 4-5 year tenure corporate bonds and target maturity funds as we near the end of the interest rate hike cycle. Whereas in this uncertain environment to be more defensive in equity funds it would be advisable to invest in flexi cap, large and mid cap categories of funds.
Vivek Goyal, Managing Director, Talwind Financial Services