Best Funds For FY 2022

With the markets performing like a ship in churning waters over the past two years, a carefully thought out and welldevised strategy needs to be adopted by investors to be able to park their money in the right choice of mutual funds. Taking the performance of the funds last year which turned tables upside down, we have picked the top five funds which you may consider for your investment plans in FY 2022

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The year 2020 was quite active wherein the pandemic-induced lockdown in the already dwindling economy led the equity market to shed close to 40 per cent all across the globe. Nifty 50 Total Returns Index (TRI) fell from its high of 17,349.12 in January 2020 to a low of 10,710.41 in March 2020, registering a fall of 38 per cent. On the flip side, from the month of June 2020 we started to witness a rally. Nevertheless, Nifty 50 TRI took seven months (April 2020 to November 2020) to reclaim its previous high.

As can be seen from the graph (1.1), it took almost thrice the time to recover to the previous high. That said, from the low of March 2020 to the high of 21,739.69 in February 2021, this rally gave almost 103 per cent return. This return seems to be quite stunning. Even mutual funds in this period gave sparkling returns despite witnessing outflows via redemptions.

It is evident from the graph (1.2) that any equity MF category you might have picked in this period would have fetched you double-digit returns. It was the PSU theme that generated the lowest average returns of 55.2 per cent whereas it was technology funds that outshined other categories of mutual funds, returning 134.1 per cent.

What if we say that in the period starting from March 23, 2021 to February 15, 2021 even if you had invested in the worst fund, you would have earned double-digit returns? Yes, that’s right!