Identifying resilient mutual funds becomes paramount, especially during challenging market conditions. Value Research, a financial analysis platform, conducted an analysis of 70 funds in the growth category with a 10-year track record.
The growth category encompasses flexi-cap funds, large- and mid-cap funds, tax-saving funds, and value funds.
Out of the 70 funds scrutinised, nine funds exhibited resilience by consistently outperforming their category averages and benchmarks during market downturns.
In short, it can be said that these nine funds have been the most dependable ones in the last 10 years.
These funds that have performed better than their benchmarks and category average at least 65% of the time during significant market falls, Value Research said.
Take a look:
| Fund name | Falling less than benchmark and category median | Beating 5-year rolling return of benchmark* |
|---|
| Parag Parikh Flexi Cap Fund | 83% | 100% |
| DSP ELSS Tax Saver Fund | 67% | 100% |
| Quant ELSS Tax Saver Fund | 67% | 100% |
| Mirae Asset Large & Midcap Fund | 67% | 100% |
| Kotak Equity Opportunities Fund | 67% | 99% |
| Kotak ELSS Tax Saver Fund | 67% | 98% |
| SBI Large & Midcap Fund | 67% | 83% |
| Invesco India ELSS Tax Saver Fund | 67% | 75% |
| Sundaram Large and Mid Cap Fund | 67% | 70% |
(Source: Value Research; *S&P BSE 500 TRI's five-year daily rolling returns since 2019)
This fund has consistently outshone its peers over the last decade. A key contributing factor to its success is its flexibility in investing in international companies, maintaining an average of 22% in international equities, Value Research said.
This strategy has enabled the fund to generate alpha, delivering extra returns compared to other flexi-cap funds.
Notably, a common thread runs through all the funds on this list, with the exception of
Quant ELSS Tax Saver Fund—they follow the 'growth at a reasonable price (GARP)' investment style.
The GARP strategy is a balanced approach, combining elements of both growth and value investing. In essence, it seeks to identify growing companies that are not overly expensive, allowing them to withstand market downswings without drastic reactions, Value Research said.
However, it's essential to highlight that these funds are not any recommendations.
