Three schemes offered over 50% on lumpsum investments in 2023. Mahindra Manulife Small Cap Fund, the topper in the list, offered 54.47% in 2023. A lumpsum investment of Rs 1 lakh made on January 1 in the scheme would have grown to Rs 1.54 lakh on December 15.
Bandhan Small Cap Fund gave 50.96%. Franklin India Smaller Companies Fund offered around 50.35%.
Nippon India Small Cap Fund, the largest scheme in the small cap category based on assets managed, offered 46.47% in 2023. The scheme manages assets of Rs 41,018.83 crore.
HDFC Mid-Cap Opportunities Fund, the largest scheme in the mid cap category based on assets managed, offered 43.80%. The scheme manages assets of Rs 52,137.70 crore.
A lumpsum investment of Rs 1 lakh in these 20 schemes would have now been between Rs 1.41 lakh and Rs 1.54 lakh in 2023. These 20 schemes offered a CAGR of 41.06%-54.47%.
These 20 equity schemes were from small cap, mid cap, and value fund categories. As these 20 equity schemes are from different categories, they have different risks associated with them.
We calculated the CAGR returns of 243 equity schemes in the market for the study. The CAGR returns for these schemes were calculated for the period starting from January 1, 2023 to December 15, 2023.
We looked at equity scheme categories, including large cap, large & mid cap, mid cap, small cap, multi cap, flexi cap, focused funds, value fund, contra fund, and ELSS fund categories. We considered regular plans and the growth option for the study
Note, the above exercise is not a recommendation. The exercise was done to analyse how the lumpsum investments made on January 1, 2023 have performed during the year.
One should not make investment or redemption decisions based on the one year performance of equity schemes. The investment in equity schemes are meant for a long period. You should always invest in equity schemes with an investment horizon of five to seven years. It is also equally important to choose a scheme that matches your risk profile.
