Best performing equity, debt and hybrid funds in February 2022

February 2022 confirmed the negative bias observed in January 2022. In this post, we will highlight the best performing equity, debt, and hybrid funds in February 2022.

The S&P BSE 500 was down only 0.4 per cent in January 2022, but the market continued its downward path, closing the month of February 2022 down over 4 per cent. The individual performance of large, mid and smallcap as represented by BSE 100, BSE Midcap, and BSE Smallcap indices generated negative returns of 3.26 per cent, 5.11 per cent, and 8.77 per cent, respectively. This came in the background of rising crude oil prices and the Indian rupee's depreciation against the US dollar.

Because the Federal Reserve is considering raising interest rates, Foreign Portfolio Investors (FPI) have sold heavily, amounting to around Rs 35,592 crore in February 2022. Furthermore, as compared to other emerging economies, India has a high valuation, prompting foreign investors to seek safety amid geopolitical concerns between Russia and Ukraine. Inflation has also risen above the Reserve Bank of India's target range.

Having said that, we have listed the best performing mutual funds in the month of February 2022 in this article. It should be emphasised that in order to comprehend the best performing funds, we examined funds based on their trailing returns. We assumed five-year annualized trailing returns for equity and hybrid funds, and three-year annualized trailing returns for debt funds.