Best Performing Mutual Funds in October| North Loop Official Blog
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03 Nov 2020

Best Performing Mutual Funds in October

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What is a mutual fund?

A mutual fund is a common pool of money in which investors put in their contributions that then gets invested according to the investment objective of the fund. These funds get operated by managers and include a diverse portfolio of securities like stocks, bonds, money market instruments, gold and other assets. The fund managers invest intending to create growth and appreciation. Before we move to the best performing mutual funds in October, let us get a deeper understanding of mutual funds and how they get set up.

The different categories of mutual funds are -

Equity funds - These funds invest only in stocks and other equity instruments.
Debt funds - These funds invest only in fixed income instruments.
Money-market funds - These funds invest in short-term money market instruments.
Hybrid funds - These are funds that divide between equity and debt to create a balanced portfolio.

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How is a mutual fund set-up?

A mutual fund gets set up in the form of a trust that has a sponsor, trustees, an asset management company (AMC) and custodian. The trustees of the mutual fund hold its property for the benefit of unitholders. The custodians who get registered with the SEBI, hold the securities of various schemes of the fund. The role of the AMC is to employ professional fund managers who have expertise in investing in equity, debt or both. They are the ones who invest the collected amount from investors and manage the fund to generate desirable returns. The AMC of a mutual fund can have several mutual fund schemes with specific investment mandates. As an investor, you can choose one depending on the objective of that particular fund. The general power of superintendence and direction of the AMC gets vested with the trustees. They also monitor the performance and compliance of the fund with SEBI regulations. It is mandatory for every mutual fund to follow all the rules laid down by SEBI and to mention its objectives in the prospectus offered to its investors.

What is the benefit of investing in mutual funds?

One of the key advantages of investing in mutual funds is the access to a professionally managed portfolio. Mutual funds also provide the opportunity to create a diversified investment portfolio with only a small amount of money. Each investor can participate proportionally in the scheme and share the gains or bear the losses from the fund similarly.

Best performing mutual funds in October -

Let us now look at the best performing mutual funds of various categories indexed on 5-year returns, according to experts -

Equity large-cap funds -
   
Name of Fund   
   
5-Year Return   
   
Axis Blue Chip Fund (G)    
   
10.919%   
   
Canara Robeco Bluechip (G)   
   
10.377%   
   
Mirae Asset Large Cap (G)    
   
10.265%   


Equity Multi-Cap Funds -
   
Name of Fund   
   
5-Year Return   
   
Parag Parikh LT Equity(G)   
   
12.755%   
   
Quant Active Fund (G)   
   
12.738%   
   
UTI Equity Fund (G)    
   
10.011%   


Equity Mid-Cap Funds -
   
Name of Fund   
   
5-Year Return   
   
Axis Mid Cap Fund (G)   
   
11.068%   
   
DSP Mid Cap Fund (G)   
   
10.964%   
   
Kotak Emerging Equity (G)   
   
9.601%   


Equity Linked Savings Schemes (Tax Saving) -
   
Name of Fund   
   
5-Year Return   
   
Quant Tax Plan (G)   
   
15.335%   
   
BOI AXA Tax Advantage (G)   
   
10.485%   
   
Canara Robeco TaxSaver (G)   
   
10.204%   


Balanced Funds (Aggressive Allocation) -
   
Name of Fund   
   
5-Year Return   
   
Quant Absolute Fund (G)   
   
10.134%   
   
Mirae Asset Hybrid (G)   
   
9.516%   
   
Canara Robeco Hybrid G)   
   
9.352%   


Balanced Funds (Conservative Allocation) -
   
Name of Fund   
   
5-Year Return   
   
ICICI Pru Savings Fund (G)   
   
8.846%   
   
Kotak Debt Hybrid (G)   
   
8.087%   
   
Baroda Conservative(G)   
   
8.086%   


Liquid Funds -
   
Name of Fund   
   
5-Year Return   
   
Quant Liquid Plan (G)   
   
6.910%   
   
Aditya Birla Liquid Plan (G)    
   
6.705%   
   
PGIM India Insta Cash (G)   
   
6.703%   


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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.