Crisil released rankings of mutual funds for the quarter ended March, in four categories: flexi-, large-, large and mid-cap funds, and contra schemes. In The Mutual Fund Show this week, Crisil discussed some of the top performers and key schemes:
Schemes in this category can invest in stocks across market capitalisation as opposed to 25% minimum allocation to large-, mid-, and small-cap funds.
The PGIM India Flexi Cap Fund was ranked No. 1 in the latest Crisil rankings, moving up from the second place in the quarter ended December.
The research firm said funds with a higher share of mid and small caps outperformed. And PGIM scheme significantly increased exposure to small caps with their share rising from 14.19% in August 2020 to 33.61% as of March 2021. That came at the expense of exposure to large-cap stocks.
Large-cap funds, despite a recent rebound, continue to lag the benchmark (Nifty 100 TRI) in last one and three years. Only 2 of 28 schemes have outperformed the benchmark over the three-year period.
UTI Large-Cap fund moved from the second to the first slot. Performance of some of heavyweight stocks aided its move up.
It has returned 43% gains in the last nine months and 69% in one year compared with the category’s average of 39% and 62%, respectively. In the three-year period, the scheme returned 14% gains compared with the category average of 11%.
Axis Bluechip Fund slipped from No. 1 to No. 3. It increased exposure to large cap stocks from 79.75% in May 2020 to 93.28% in March 2021, which affected its recent performance, according to Crisil. Meanwhile, the fund reduced cash share from 20.21% to 6.05% during period. It had almost no exposure to small and mid-cap stocks, and since these two categories performed better than large caps, the scheme underperformed.
Large and Mid-Cap Funds
This category too has fared like large-cap schemes. Performance has been dependent on stock selection and timing of entry and exit. Only four of 21 schemes in the category ranked by Crisil outperformed the benchmark (Nifty LargeMidcap 250 Index TRI) over a three-year period.
The Edelweiss Large and Midcap fund moved from second spot to first. The fund recorded 49.76% gains in the last nine months, outperforming the category’s average of 46.46% and the maximum return of 54.31% in the peer group. In the last three years, it posted 12.90% returns against the category average of 10.78%. The performance was aided by stock selection compared to allocation across market capitalisation, which has remained broadly consistent in the three years.