The month of September came in as a much needed breather for the equity markets. First half of the month was marked by volatility but announcement of reforms like corporate tax cut and rollback of FPI surcharge revived the animal spirits in the market. This resulted in the highest one day gain in the indices in the last 10 years. Benchmark indices Sensex and Nifty had fallen 8.4% and 9.2% respectively from July highs till mid-September. Post reform announcement they bounced back by 7.1% and 7.2% respectively in the last ten days of the month. After posting losses over the previous few months, the midcap and smallcap indices also ended the month with gains.
Many sectors have seen reduction in the effective tax rates, which is set to provide a much needed relief on corporate earnings front. Gold funds which were topping the charts in terms of performance in the last 2 months, ended the month in negative territory. However, the cut in corporate taxes raised fears of fiscal deficit slip by the government leading to rise in yield of 10 year benchmark by 15 bps (100 bps = 1%) during the month. This resulted in losses for duration funds which were among the best performers in the last couple of months.
If you had remained invested in the markets, you would have reaped benefits of the same. This reiterates our advice of staying invested in the markets in spite of short term losses.
Let’s take a look at the best performing mutual funds across categories in Sep, 2019:
Best performing large cap funds in Sep, 2019:
Best performing small cap funds in Sep, 2019:
Best performing mid cap funds in Sep, 2019:
Best performing multi cap funds in Sep, 2019:
Best performing ELSS Tax Saver Funds in Sep, 2019:
For any investor, it is most important to focus on consistency of returns rather than taking investment decisions based on very short term returns. Also, the interim volatility in equity funds make a stronger case of investing through SIP mode to take advantage of rupee cost averaging over your investment horizon.
As an investor you should 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.