Once again, ET Wealth teamed up with Morningstar India to rank the country’s best equity fund managers, across categories, based on their 5-year risk-adjusted returns.
Here are the winners.
Large Cap
- Neelesh Surana, Mirae Asset Mutual Fund
- Harsha Upadhyaya, Kotak Mahindra Mutual Fund
- Sohini Andani, SBI Mutual Fund
- Sailesh Raj Bhan, Reliance Mutual Fund
- Mahesh Patil, Aditya Birla Sun Life Mutual Fund
Multi Cap
- Jinesh Gopani, Axis Mutual Fund
- Dhimant Shah, Principal Mutual Fund
- Rajeev Thakkar, PPFAS Mutual Fund
- Ajay Garg, Aditya Birla Sun Life Mutual Fund
- Mrinal Singh, ICICI Prudential Mutual Fund
Small and Mid Cap
- Neelesh Surana, Mirae Asset Mutual Fund
- N. Lahiri, L&T Mutual Fund
- Ravi Gopalakrishnan, Canara Robeco Mutual Fund (he has now left this fund house)
- Anoop Bhaskar, IDFC Mutual Fund (moved from UTI MF to IDFC MF)
- Janakiraman, Franklin Templeton Mutual Fund
How the fund managers were ranked
- The study was restricted to open-ended, actively managed, diversified equity funds segregated into 3 distinct categories— large-cap, multi-cap (including ELSS), and mid- and small-cap—according to Morningstar India’s classification prior to June 2018.
- Schemes with a corpus of at least Rs 200 crore were considered.
- Index, thematic, sector and balanced funds were eliminated.
- The performance of the funds was looked at over 5 years: July 1, 2013 to June 30, 2018.
- Only managers who helmed the funds throughout that 5-year period were considered, with the exception of a maximum 4-month gap between two stints. The track record only for the completed months was considered for analysis.
- For a fund to qualify, the fund manager needed a minimum 2-year track record with the fund as lead manager.
- The study was restricted to fund managers cumulatively managing an AUM of at least Rs 500 crore, across all qualifying funds.
- After short-listing the fund managers, the aggregate returns generated by each fund manager were calculated over the 5-year period for all the funds managed by him/her that met the qualifying criteria.
- The returns were then adjusted for risk to account for the degree of risk taken by the fund manager to generate the return. To get the risk-adjusted score, the asset weighted monthly returns of all the funds satisfying the above-mentioned criteria were calculated. Weighing scheme performance by its corpus size helps give due importance to the size of each fund.
- Then, the annualised geometric mean for the 5-year period was calculated to arrive at the annualised 5-year returns. Further, the annualised standard deviation of the monthly asset-weighted returns was calculated.
- The final risk-adjusted return was calculated by deducting the risk-free return—three-month FBIL MIBOR (Mumbai Interbank Offer Rate) return— from the annualised geometric returns generated by each fund manager, and dividing these by the respective standard deviation.
This post initially appeared in The Economic Times.