Top Mutual Funds with High Returns & Low Risk for Bottom Fishing

This article highlights the best-performing equity and hybrid funds, based on their historical performance compared to the Nifty 50 index.

Top Mutual Funds with High Returns & Low Risk for Bottom Fishing


Posted on 26 Jan 2025 โ€ข Updated on: 09 Feb 2025
Author: Sayan Sircar
5 mins read
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This article highlights the best-performing equity and hybrid funds, based on their historical performance compared to the Nifty 50 index.

Top Mutual Funds with High Returns & Low Risk for Bottom Fishing

Disclaimer: The Fund names in this article are not recommendations to buy/hold/sell. Mutual funds are subject to market risks. Do not invest real money without adequate research.

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The ultimate investment goal for mutual fund investors is high returns at low risk. The stock market always offers opportunities to pick up funds that have the potential to give stable returns with lower fluctuations.

Identifying funds that have done well in the past vs. the Nifty 50 index fund can be tricky since getting and analysing the data might be tricky.

This article shows a list of mutual funds based on their historical returns.

What is the concept of relative risk vs. return performance of mutual funds against the market benchmark?

Excess Risk and Return of Funds vs the Nifty 50 TRI

If we split the list of all equity mutual funds then we will end up with four categories:

  • funds that give better returns than the Nifty 50 index fund but with lower risk which are ideal for any investor
  • funds that give better returns than the Nifty 50 index fund but with higher risk which are great for investors with high risk tolerance
  • funds that give lower returns than the Nifty 50 index fund but with lower risk which are good for debt funds
  • funds that give lower returns than the Nifty 50 index fund but with higher risk which is a terrible place to be for an equity fund

Related:
Which are high-risk and underperforming mutual funds that can be avoided by investors?

Users of the free Arthgyaan mutual fund portfolio review service will get the above chart created for all funds in their portfolio.

In this article, we will look at the latest list of equity mutual funds, including index funds tracking indices other than the Nifty 50, to check if they are in the best category of higher returns and lower risk.

In the analysis below, we have chosen equity and hybrid mutual funds with higher returns at lower risk using the last three years of market data from AMFI for the period ending 07-Feb-2025. The funds that have fallen the most from their 52-week high levels are presented first.

Related:
Bottom fishing tracker: which mutual funds have fallen the most?

Which mutual funds have higher returns at lower risk vs the broad market?

Note: This chart represents point-to-point data. The funds in the list will change over time as the future performance of any particular fund is random and cannot be predicted in advance.

Flexi Cap Fund

Fund Change (%) NAV (52w high) Latest NAV
CANARA ROBECO FLEXICAP 10.22 392.1500 352.0900
Union Flexi Cap 10.02 58.5000 52.6400

Dividend Yield Fund

Fund Change (%) NAV (52w high) Latest NAV
Sundaram Dividend Yield 11.84 159.7432 140.8328
UTI-Dividend Yield 10.89 203.8115 181.6088
Templeton India Equity Income 10.47 164.5244 147.2946
ICICI Prudential Dividend Yield Equity 10.08 60.3900 54.3000

Large Cap Fund

Fund Change (%) NAV (52w high) Latest NAV
HDFC Large Cap 10.83 1309.4330 1167.5780
Aditya Birla Sun Life Frontline Equity 10.71 605.4800 540.6100
Franklin India Bluechip 10.41 1180.3815 1057.4927
Kotak Bluechip 10.11 679.7930 611.0770

Sectoral/ Thematic

Fund Change (%) NAV (52w high) Latest NAV
ICICI Prudential FMCG 15.52 606.7700 512.6100
SBI Equity Minimum Variance 14.09 27.2354 23.3968
UTI - MNC 13.62 476.5359 411.6309
Tata Ethical 12.44 493.1378 431.8114
ICICI Prudential Bharat Consumption 12.35 29.7100 26.0400
ICICI Prudential MNC 10.90 33.0200 29.4200

Focused Fund

Fund Change (%) NAV (52w high) Latest NAV
Aditya Birla Sun Life Focused 10.34 165.8028 148.6520

ELSS

Fund Change (%) NAV (52w high) Latest NAV
ICICI Prudential ELSS Tax Saver 11.11 1080.4400 960.4200

Index Funds

Fund Change (%) NAV (52w high) Latest NAV
Edelweiss Nifty 100 Quality 30 Index 12.79 16.2351 14.1591

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What should an US NRI do to become compliant with PFIC and FBAR rules on their Indian investments?

What should investors do with this data?

Related:
Analyze Your Mutual Fund Portfolio for Free with Arthgyaan's Mutual Fund Review Service

There are three key takeaways from this data:

  1. Review existing funds: Investors should check if their current funds are on the list and evaluate their next steps, including consulting their advisor. Such funds should be shortlisted for future additional investment
  2. Bottom fishing opportunities: Funds in the list might represent bottom-fishing opportunities since their performance has been stable vs. the market index
  3. Introduce hybrid funds into the portfolio: This might be a good opportunity to move some portion of the portfolio to hybrid funds that have an allocation to both equity and debt with automated tax-free rebalancing

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This post titled Top Mutual Funds with High Returns & Low Risk for Bottom Fishing first appeared on 26 Jan 2025 at https://arthgyaan.com


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