In the year 2020, the mutual fund market has seen wild turns. In March 2020, the sector saw fast redemptions as the economy crashed and then strong inflows later in the year, raising the total Assets Under Management (AUM) to an all-time record of Rs 30 lakh crore in MF schemes. By December end, the AUM of the mutual fund sector soared by 13 percent in the year as opposed to Rs 26.54 lakh crore in 2019. In particular, fixed income schemes witnessed strong inflows with a massive addition of Rs 3.5 lakh crore to the total AUM of the mutual fund sector, as per data from the Mutual Funds Association in India (Amfi). Due to the criticality of these sectors in struggling with the pandemic, the pharma and IT sectors were all the buzz during the year. Due to various months of lockdown nationwide, there is no substitute (TINA) element to intervene in consideration of these firms, resulting in a grinding halt for almost all other sectors. Mutual funds based on these two fields have both provided investors with strong yields. Since capitulating to the market downturn in March, some mid-cap and small-cap funds have recovered nicely. For context, in the year 2020, key benchmark indices Nifty and Sensex gained 15% and 16%, respectively. Below is a summary of 5 such mutual funds that offered investors more than 50 percent returns in 2020.
|Name of the fund||Returns in %||NAV as of Jan 1, 2020||Net assets as of Jan 1, 2020|
|DSP Healthcare Fund-Reg(G)||76||Rs 19.43||Rs 956.35 Cr|
|Mirae Asset Healthcare Fund-Reg(G)||73||Rs 19.118||Rs 1097.45 Cr|
|ICICI Prudential Pharma Healhcare and Diagnostics (P.H.D) Fund-Direct Plan||71||Rs 18.34||Rs 2022.73 Cr|
|ICICI Prudential Technology Fund-Growth||71||Rs 98.89||Rs 938.05 Cr|
|UTI HealthCare – Direct Plan – Growth||66||Rs 154.10||Rs 609.63 Cr|