MF Industry in 2023

If you have invested in mutual funds (MFs), 2023 so far has been a sweet happy year for mutual fund investors. The mutual fund industry has bounced back strongly this year after a lackluster 2022 with a remarkable Rs 9 lakh crore surge in the asset base, driven by a buoyant equity market, stable interest rates and robust economic expansion.

In this report we will talk about the key trends in the MF industry across schemes, categories and AMCs.

Best and worst performing AMCs

Best Performing AMC
AMC Name	Returns
JM Financial Asset Management Limited	37.90%
360 ONE Asset Management Limited	36.90%
Bank of India Investment Managers Private Limited	36.90%
Franklin Templeton Asst Mgmt (IND) Pvt Ltd	36.50%
Nippon Life India Asset Management Ltd	35.90%
HDFC Asset Management Co Ltd	35.80%
Bandhan Asset Management Company Limited	35.40%
ITI Asset Management Limited	35.10%
Invesco Asset Management (India) Private Ltd	35.00%
HSBC Asset Management (India) Private Ltd	34.50%

Worst Performing AMC
AMC Name	Returns
PGIM India Asset Management Private Limited	21.60%
Quantum Asset Management Co Pvt. Ltd.	24.70%
Navi AMC Limited	25.00%
Mirae Asset Investment Managers (India) Private Limited	25.20%
Shriram Asset Management Co Ltd	26.30%
Groww Asset Management Ltd.	26.60%
Axis Asset Management Company Limited	27.20%
Taurus Asset Management Company Limited	27.90%
LIC Mutual Fund Asset Management Limited	28.00%
UTI Asset Management Co Ltd	28.10%

Observations:

• The top 10 best-performing funds offer more than 50% returns.
• Even the worst-performing schemes in CY2023 have offered more than 18% returns.
• Smaller AMCs like JM and 360 have topped the charts for CY23.
• Nippon AMC has shown a significant turnaround in its performance, specifically in the last 2 years, where the economic recovery theme has played very well in its favour.
• Surprisingly, more prominent names like HDFC, ICICI and SBI are not among the top 10 performers.

2. Best and Worst Performing Category

Best Performing Category
Category	Returns
Equity – PSU	52.90%
Equity – Infrastructure	44.10%
Small-Cap	41.70%
Mid-Cap	37.40%
Sector – Technology	35.80%
Dividend Yield	35.60%
Value	33.90%
Sector – Healthcare	33.30%
Multi-Cap	33.20%
Contra	33.20%
Equity – PSU	52.90%
Equity – Infrastructure	44.10%

Worst Performing Category
Category Name	Returns
Sector – Financial Services	23.20%
Large-Cap	23.50%
Equity – ESG	24.00%
Focused Fund	26.30%
Equity – Consumption	27.60%
ELSS (Tax Savings)	27.80%
Flexi Cap	28.30%
Equity – Business Cycle	28.60%
Large & Mid- Cap	29.90%
Equity – Quant	30.60%

3. Best and worst Performing Thematic/Sectoral Categories

Category	Returns
Equity – PSU	52.90%
Equity – Infrastructure	44.10%
Sector – Technology	35.80%
Sector – Healthcare	33.30%
Equity – Other	32.30%
Equity – Quant	30.60%
Equity – Business Cycle	28.60%
Equity – Consumption	27.60%
Equity – ESG	24.00%
Sector – Financial Services	23.20%

Observations:

• Broader markets performed exceptionally well in CY23, and the results can be seen in the performance of certain sectoral thematic funds and small-cap funds.
• The large-cap pack suffered the most and delivered the most negligible returns as investors flocked towards chasing alpha.
• Defence stocks were in the limelight as their order books surged, creating a solid pipeline for future revenue.
• Still, even the worst performing sectoral/thematic category, financial services and ESG, has delivered more than 20% returns