Mutual Funds Asset Class Returns 31Dec2022
(Update 01Apr2023 for this blog is available)
This is an update of an earlier blog
published on 08Jul2022. Now, I present the data as at the end of 31st of December, 2022. The data contain select categories of mutual funds in
India, numbering fifteen, from equity, debt and commodity (gold)
categories.
Table 1: Asset return matrix - annual returns (top to bottom returns in 2022) >
Please click on the image to view better >
What Table 1 reveals is:
- asset class returns are cyclical in nature
- in calendar year 2022, credit risk fund category (debt mutual funds) has delivered the highest return of 13.4 percent, followed by gold (13.3 percent) and multi-asset allocation funds (5.1 percent)
- gold is the leitmotif for cyclical nature of asset class returns: it did better than other asset classes in 2016, 2019, 2020 and 2022; but did poorly in 2021, 2015 and 2014 -- in 2022, gold achieved decent returns of 13.3 percent
- among equity, small cap funds did better than others in 2021, 2020 and 2014; but did poorly in 2019 and 2018
- asset classes (or mutual fund categories) that did well in 2021 have given, in general, poor returns in 2022
- it is better to look at consistency of annual returns, along with latest trailing returns, rather than looking at just latest trailing returns--while comparing various mutual fund categories and plans
- Liquid mutual funds used to provide decent returns (providing protection against inflation) till middle of 2019; but have been providing poor returns since the middle of 2019 -- though they started providing higher returns since the middle of 2022 as compared to prior periods
- As returns are hard to predict, it's better to have a proper asset allocation according to one's risk appetite and personal situation in order to smooth out volatility of returns
(the blog continues below)
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Important information relating to SEBI categorization and rationalization of mutual fund plans introduced in 2017:
SEBI circular dated 06Oct2017
SEBI circular dated 04Dec2017
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Table 2: Asset return matrix - trailing returns (10-year returns top to bottom) >
Please click on the image to view better >
What Table 2 reveals is:
- Small-cap equity funds have provided best returns on a 10-year trailing returns basis, though they have provided no returns as a category in the past one year
- on a 10-year trailing basis, equity mid-cap and flexi cap funds too have provided inflation-beating returns
- Gold, arbitrage and credit risk funds have provided poor returns on a 10-year trailing basis
- on a 3-year trailing basis, the returns of gilt funds, Banking and PSU funds and floater funds are a big disappointment for investors
- though credit risk funds had delivered highest returns (among the 15 selected funds) in 2022, on a 10-year basis their returns are at the bottom of the pile
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Additional data
The following tables provide asset return matrix for annual returns and trailing returns -- the data are as provided in Tables 1 and 2 above, but in alphabetical order >
The following are screenshots from Value Research captured on 31Dec2022 >
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Read more:
BSE Broad and Sector Indices Market Cap 31Dec2022
Global Market data 31Dec2022
BSE Broad and Sector Indices Returns 30Dec2022
Crisil Report - Big Shift in Financialisation
Global bond yields, negative real interest rates and soft landing
Indian Energy Exchange Buyback Offer 2022
Larsen & Toubro Infotech & Mindtree Merger Effective 14Nov2022
Indian Energy Exchange Limited - Brief Analysis
JP Morgan Guide to the Markets
Infosys Limited Buyback Offer 2022
Indians' Love For Cash Continues Unabated
Exit India Policy by Foreign Investors
Nifty 50 Index Quarterly Movement
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Disclosure: I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets.
CFA Charter credentials - CFA Member Profile
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He blogs at:
https://ramakrishnavadlamudi.blogspot.com/
Twitter @vrk100
