Performance of the recently launched Mutual Fund Schemes
In India, since the beginning of 2021, various mutual funds have come up with new schemes. The new fund offerings are raining in India. Investing in a new fund offering is not the best option unless a mutual fund is offering any unique scheme. As there is no past performance data available, there is no assurance that the investment objective of the scheme will be achieved.
Let’s look at the three-month performance of the recently launched equity-oriented mutual fund schemes:
|
Mutual Fund Scheme
|
Inception Date
|
3-month performance
|
AUM (in crores) (as of 8th June 2021)
|
Expense Ratio (as on 31st Oct 2021)
|
3-months performance of the benchmark
|
|
Aditya Birla SL Nifty 50 Equal Weight Index Fund
|
8th June 2021
|
6.8 per cent
|
₹78.73
|
-
|
NIFTY 50 Equal Weight TRI = 6.45 per cent
|
|
ITI Value Fund
|
14th June 2021
|
4.9 per cent
|
₹147.10
|
0.32 per cent
|
Nifty 500 Value 50 TRI = 6.74 per cent
|
|
Kotak Nifty 50 Index Fund
|
21st June 2021
|
6.0 per cent
|
₹102.21
|
0.18 per cent
|
NIFTY 50 TRI = 5.29 per cent
|
|
HDFC Banking & Financial Services Fund
|
29th June 2021
|
5.7 per cent
|
₹2,278.10
|
0.42 per cent
|
NIFTY Financial Services TRI = 4.58 per cent
|
|
Axis Quant Fund
|
1st July 2021
|
7.2 per cent
|
₹1,666.37
|
0.33 per cent
|
S&P BSE 200 TRI = 6.83 per cent
|
|
ICICI Prudential Flexi-cap Fund
|
19th July 2021
|
6.5 per cent
|
₹11,493.08
|
0.16 per cent
|
S&P BSE 500 TRI = 7.21 per cent
|
|
Navi Nifty 50 Index Fund
|
15th July 2021
|
6.2 per cent
|
₹135.20
|
0.26 per cent
|
NIFTY 50 TRI = 5.29 per cent
|
|
PGIM India Small-cap Fund
|
29th July 2021
|
11.1 per cent
|
₹1,220.80
|
0.25 per cent
|
NIFTY Smallcap 100 TRI = 10.92 per cent
|
As we can see in the above table, schemes have delivered good returns in 3 months i.e., in short term and have outperformed its benchmark. One shouldn’t just rely on these returns and decide to invest as these may have performed well in the short term, but there is no assurance that they will perform well in the longer term as well. So, one should assess their risk profile, returns they expect, and also, they should look at the portfolio, risk and other parameters of the mutual fund scheme.