Predictably, small cap funds topped the return chart. The small cap category gave an average return of around 24.13% in 2023. The category has around 24 schemes and Mahindra Manulife Small Cap Fund offered the highest return of around 34.65%, followed by Union Small Cap Fund which offered 30.83%.
We considered all equity schemes like large cap, mid cap, large & mid cap, small cap, ELSS, multi cap, flexi cap,focused fund, contra and value. We considered regular and growth options.
"What has worked for us has been the consistency of what we have delivered across multiple years. In addition, we have varied styles working within the broad investment philosophy which has ensured that each fund is managed in a manner that is most appropriate to the objective of the specific category," says Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund
These actively-managed schemes are benchmarked against Nifty Midcap 100 - TRI, Nifty Midcap 150 - TRI, and S&P BSE 150 MidCap - TRI and these benchmarks offered an average return of 29.36%, 28.07%, and 26.29% respectively.
Mutual funds are one of the popular ways of investment among retail investors in India. There are three main categories of mutual funds available in the Indian market. Largecap Funds, Midcap Funds, and Smallcap Funds are the most popular funds.