Top 5 Mutual Funds That Delivered Highest Returns in 2018
At the beginning of the year, a conviction has been circulated from the experts of MySIPonline. We predicted well in advance that 2018 is the year for technology funds, and the investors who invested as per our recommendations have already made more than 20% returns as we are waving goodbye to this volatile year. Well, indeed the schemes which are investing in technology and related sectors are the true savior throughout the year 2018 even after constant wiggling of the domestic markets as well as global headwinds.
The year when almost all of the categories including large caps, small caps, and mid caps suffered due to secular market conditions, IT sector and its related mutual funds surprised everyone by delivering out-of-the-box returns.
Let’s find out who were the top wealth creators for the year 2018 and can we expect the same from them in the coming year as well or not.
Tata Digital India Fund
Launched on December 28, 2015, Tata Digital India Fund topped the list of the funds which delivered the highest returns in 2018, thus delivering around 34.79% returns as on December 17, 2018. The scheme’s fund managers are Ms Meeta Shetty and Mr Sailesh Jain who believes in taking risky bets, investing more than 80% in equity and related companies of the IT segment. However, it is difficult to say that the scheme will show the same performance in the next coming years, as it all depends on the performance of the technology sector. But, if the sector shows a rise, then the scheme holds the potential to get the most out of it.
| Basic Information- Tata Digital India Fund | |
|---|---|
| Category | Equity: Sectoral-Technology |
| Benchmark | S&P BSE IT TRI |
| Launch Date | 28-Dec-15 |
| Asset Size | Rs. 368 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.76% (As on Nov 30, 2018) |
| Minimum investment | Rs. 5000 |
| Minimum SIP | Rs. 150 |
| Return Since Inception | 13.07% |
| Exit Load | 0.25% for redemption within 91 days |
ICICI Prudential Technology Fund
ICICI Pru Technology Fund is another technology-oriented fund which secures that second position in the list of top returns in 2018. It is an open-ended scheme from ICICI Pru MF that seeks long-term capital appreciation by investing in equity and equity-related securities of companies belonging to the technology sector and other sector dependent companies. The maximum part of the AUM is invested in the stocks under the benchmark index and other companies that form a part of the IT industry. Its fund managers are Mr Sankaren Naren and Mr Ashwin Jain.
| Basic Information- ICICI Prudential Technology Fund | |
|---|---|
| Category | Equity: Sectoral-Technology |
| Benchmark | S&P BSE IT TRI |
| Launch Date | 3-Mar-00 |
| Asset Size | Rs. 459 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.49% (As on Nov 30, 2018) |
| Minimum investment | Rs. 5000 |
| Minimum SIP | Rs. 100 |
| Return Since Inception | 9.81% |
| Exit Load | 1% for redemption with 15 days |
SBI Technology Opportunities Fund
This is the scheme with the third highest returns in the year 2018. SBI Technology Opportunities Fund is an open-ended technology sector-specific equity scheme that aims to provide the investors with an opportunity of attaining long-term capital growth by investing in a diversified portfolio of equity and equity-related securities of technology and its related companies. It is one of the oldest technology sectors funds with 13.71% return since launch.
| Basic Information- SBI Technology Opportunities Fund | |
|---|---|
| Category | Equity: Sectoral-Technology |
| Benchmark | S&P BSE IT TRI |
| Launch Date | 14-Jul-99 |
| Asset Size | Rs. 137 crore (As on Nov 30, 2018) |
| Expense Ratio | 3.02% (As on Nov 30, 2018) |
| Minimum investment | Rs. 5000 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 13.71% |
| Exit Load | 0.5% for redemption within 15 days |
Aditya Birla Sun Life Digital India Fund
| Basic Information- Aditya Birla Sun Life Digital India Fund | |
|---|---|
| Category | Equity: Sectoral-Technology |
| Benchmark | S&P BSE Teck TRI |
| Launch Date | 15-Jan-00 |
| Asset Size | Rs. 454 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.52% (As on Nov 30, 2018) |
| Minimum investment | Rs. 1000 |
| Minimum SIP | Rs. 1000 |
| Return Since Inception | 8.97% |
| Exit Load | 1% for redemption before 365 days |
Exceptional fund management done by the fund manager Mr Kunal Sangoi has led this fund to win the forth place in the highest return delivering funds of 2018.
With a return of 21.53% as on December 17, 2018, it has been managing Rs 454 crore worth of assets as on Nov 30, 2018. It aims to generate long-term capital by investing in the equity and its related instruments of companies mainly belonging to technology and other sector dependent companies. Earlier, Aditya Birla Sun Life Digital India Fund was known as Aditya Birla Sun Life New Millennium Fund.
Franklin India Technology Fund
Being fifth in the list of the top return delivering schemes, Franklin India Technology Fund seeks above-normal capital appreciation through investments in high quality, fast-growing companies that belong to the information technology sector. It is managed by Anand Radhakrishnan and Varun Sharma who follows the bottom-up approach to pick stocks to invest in. The fund has delivered around 16% returns in the past one year. It was launched on August 22, 1998, and has delivered 18.25% return since inception.
| Basic Information- Franklin India Technology Fund | |
|---|---|
| Category | Equity: Sectoral-Technology |
| Benchmark | S&P BSE Teck TRI |
| Launch Date | 28-Aug-98 |
| Asset Size | Rs. 370 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.75% (As on Nov 30, 2018) |
| Minimum investment | Rs. 5000 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 18.25% |
| Exit Load | 1% for redemption before 365 days |
Summing Up
Indeed, the IT segment has been riding on good earnings which is clearly seen by the IT giants in India. The depreciating rupee value against the dollar in the last few years is the reason responsible for boosting the fortunes of the segment. Other reasons include the prevailing market volatility and good earnings of the IT companies which help the segment to post phenomenal returns.
This above list of wealth gainers can help you come to two important conclusions:
- One should always invest at the right time.
- It is crucial to go with the view of experts.
We hope you too fall in the list of those lucky investors who have accumulated good corpus by investing as per our suggestion. Even if you have missed out on this opportunity, then don’t worry as there are many more to come in the years ahead. Just keep following our recommendations, and invest as per your investment objective and risk appetite.
Also, it’s never too late to invest in mutual funds. Know the best funds to invest in now by staying connected with us at MySIPonline. To clear any of your doubts concerning the regular plans of mutual funds, post them here in the link provided below.
