How your equity mutual funds fared in 2019

A small group of AMCs, such as Axis Mutual Fund, which placed growth-focused bets with better performance, managed to break the standards. The returns to the Axis Bluechip Fund yielded 18.69%. On the other hand, funds that focus on investing "value" rather than "growth" have seen modest returns. ICICI Prudential Value Discovery Fund, the largest asset planner in this category, showed a small 0.27% return. "Consistency is important. Investors should not simply jump into this year's performers. Additionally, the focused positions taken by them are a source of risk."

Aggressive hybrid funds are classified as capital funds for tax purposes. These funds were helped by lower interest rates in both debt and capital components (bond prices rose when interest rates fell). As a result, several funds in this category recorded high yields of double digits, such as the BNP Paribas Substantial Equity Hybrid Fund (16.16%), Motilal Oswal Equity Hybrid Fund (16.08%) and Axis Equity Hybrid Fund (14.05%). However, giants of this class, such as the ICICI Pru Equity and Debt Fund and HDFC Hybrid Equity Fund, left 10.62% and 7.98% returns, respectively.

The unexpected behavior of stock markets in 2019 brings a lesson of diversification. Those who enter the best results for the year should be careful.

Image Source: The Financial Express

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