Mutual Fund Schemes that Outperformed Others in December 2019

December was a good month for equity as well as debt markets. Both the markets witnessed a rocky start to the month as RBI kept repo rate unchanged while sharply cutting India’s GDP growth forecast for the current year. But the markets advanced in the subsequent weeks on the back of easing US-China trade tensions, victory of the ruling Conservative party in UK elections and indication by the US Fed that there will be no rate hikes in 2020. Easing of these global factors led to rise in global as well as local indices. Broader market indices, Nifty and Sensex both touched lifetime highs in December ending the month with 0.93% and 1.13% gains respectively.

No rate cut by the RBI and sharp cut in growth forecast to 5% for the financial year resulted in rising benchmark 10 year G-Sec yields. Persistent fiscal slippage concerns also led to fall in bond prices. But with the announcement of ‘Operation Twist’ by RBI i.e. the simultaneous buying of 10 year bonds and selling of short term bonds to bring down the long term borrowing costs of the government eventually resulted in cooling off of 10 year G-Sec yields which fell 24 bps (100 bps= 1%) from mid-month high to 6.55% at the month end. RBI continued to ensure that system liquidity remained in surplus mode.

If you had remained invested in the markets, you would have reaped benefits of the same. This reiterates our advice of remaining invested in the markets for the long term in spite of short term losses.

Let’s take a look at the best performing mutual funds across categories in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

Best performing large cap funds in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

Best performing small cap funds in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

Best performing mid cap funds in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

Best performing multi cap funds in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

Best performing ELSS Tax Saver Funds in Dec, 2019:

Returns are in %age terms. 1 month returns are point-to-point. 1 year, 3 year, 5 year returns are annualized.

As an investor you should make investment decisions based on consistency of returns rather than very short term returns. Take the SIP route while investing in volatile assets like equity mutual funds. This will ensure that you invest in a disciplined manner and take advantage of rupee cost averaging over your investment horizon.

It is advisable to take into account your investment objective, investment horizon and risk profile before making any investment decisions. Explore investment packs on Paytm Money app which are designed to take care of all your investment needs.