Mutual Fund Unlocked: Best performing categories in 2018
The year 2018 was a roller-coaster ride with some good happenings and bad events. Despite such a volatile year some of the mutual funds managed to cope even in such a situation. So let us find out which mutual fund categories faired in the year 2018.
Mutual Fund Categories | Returns |
Large Cap | 2.73% |
Sectoral-Technology | 22.24% |
Long Duration | 6.76% |
Medium to Long Duration | 4.71% |
Medium Duration | 5.59% |
Short Duration | 5.91% |
Low Duration | 6.98% |
Ultra Short Duration | 6.68% |
Liquid | 6.87% |
Money Market | 6.76% |
Overnight | 5.93% |
Dynamic Bond | 5.34% |
Corporate Bond | 5.58% |
Credit Risk | 5.00% |
Banking and PSU | 6.33% |
Floater | 6.63% |
FMP (Fixed Maturity Plan) | 7.18% |
Gilt | 6.24% |
Gilt with 10 year Constant Duration | 8.62% |
So if we look at the returns provided by the above categories then the mutual fund dedicated to the technology sector have performed really very well with returns of 22.24 per cent. The reason being the earning performance of the IT stocks, specifically the IT giants as well as the rupee depreciation worked as a cherry on the cake. Even the large-cap MFs have fared well compared to other equity MFs in the year 2018 with returns of 2.73 per cent.
When we turn to the debt MF categories, despite the bad events like the IL&FS fiasco, they have turned out to be pretty well in 2018. To be specific gilt with 10-year constant duration and FMP (Fixed Maturity Plan) gave the highest returns among the debt mutual funds category with returns of 8.62 per cent and 7.18 per cent, respectively, followed by low duration, liquid, long duration, money market and ultra-short duration funds with returns of 6.98 per cent, 6.87 per cent, 6.76 per cent, 6.76 per cent, and 6.68 per cent, respectively.