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      The Best Performing Mutual Funds in November 2023

      By Wasim Omar

      Published on

      November 14, 2023

      2:51 PM UTC

      The Best Performing Mutual Funds in November 2023

      November 2023 stands as a month of uncertainty and economic stress. As traders navigate through volatile conditions, seeking stability becomes paramount.

      Enter mutual funds—the unsung heroes of investment portfolios. Amid the unpredictable twists and turns, the best performing mutual funds in November offer a diversified haven for risk-averse investors.

      By pooling resources from various participants, these funds spread the risk across a multitude of assets, shielding investors from the full impact of market turbulence.

      In this month’s financial landscape, where unpredictability reigns supreme, the reliability of mutual funds is of utmost importance.

      This article delves into the best performing mutual funds in November 2023, providing a compass for stock market participants to navigate the challenges and capitalize on opportunities in a market defined by its fluctuations.

      Top November Funds

      Shifting our focus to the best performing mutual funds in November that have significantly influenced the financial landscape, it’s clear that these top performers haven’t just adjusted but flourished amid the dynamic conditions of the market seen this month. These are discussed as follows:

      1. Catalyst Systematic Alpha Fund

        Catalyst Systematic Alpha Fund (MUTF: ATRFX) has consistently outperformed, delivering +16% total returns in in the last 12 months compared to the S&P 500’s +12%. Its spot among the best performing mutual funds in November is one that is well-deserved.

        What sets ATRFX apart is its resilience, providing positive returns even during the 2022 bear market, making it prime for the shocks many foresee this month.

        Awarded the Lipper Award for best absolute return performance, ATRFX has consistently ranked in the top 1% of alternative mutual funds, reflecting its prowess in leveraging the BNP Paribas Catalyst Systematic Alpha Index.

        ATRFX’s “offense-defense” strategy, rooted in the Markowitz Portfolio Theory, aims to optimize returns and manage risks through diversified asset allocation. While its 1.93% expense ratio is on the higher side, ATRFX’s remarkable performance justifies the cost.

        With a growth of 2,400% in assets over a year, ATRFX presents a compelling opportunity for investors this November, seeking an all-season investment strategy with a strong set of fundamentals.

      2. The Calamos Phineus Long/Short Fund

        The Calamos Phineus Long/Short Fund (CPLIX) emerges as a compelling choice for November, navigating the evolving economic landscape marked by rising real interest rates. Positioned defensively since July, the fund anticipates a cycle peak near the current 5% US 10-year yield.

        In contrast to market concerns, CPLIX’s defensive stance suggests a bullish outlook, historically observed when bonds dominate over equities. The fund strategically leans into the mid-cycle correction, offering investors a tactical entry point into 2024.

        With an S&P 500 target of 4500, CPLIX aligns with the expectation of normalized interest rates, ushering in a more cyclical phase for financial assets.

        In the absence of a recession, this fund showcases resilience amid rate pressures, making it a standout choice among the best performing mutual funds in November, for investors in the current economic climate.

      3. The Calamos Timpani Small-Cap Growth Fund

        The Calamos Timpani Small-Cap Growth Fund (CTSIX) stands out among best performing mutual funds in November as a prime pick. Focused on small-cap growth stocks, CTSIX leverages a time-tested, repeatable process with a promising multiyear upcycle ahead.

        Historical trends indicate that small caps outperform after the S&P 500 rallies above bear market lows, and CTSIX has demonstrated a compelling performance in this scenario.

        With small caps showcasing attractive valuations compared to mega caps and a history of rebounding after down years, CTSIX aligns with potential market shifts.

        Its bottom-up approach gains strength as correlations among small caps fall, creating a stock-picker’s market. Positioned in promising sectors like healthcare, industrials, and AI-related technology, CTSIX taps into growth opportunities, making it a strategic and timely investment choice.

      4. The Nuveen High Yield Municipal Bond Fund

        The Nuveen High Yield Municipal Bond Fund (NHMAX) stands out as a top pick for November, offering a robust performance in the high-yield municipal bond sector. With a notable 15.5% allocation to investment-grade bonds, NHMAX distinguishes itself as a relatively pure-play high-yield municipal fund.

        The fund’s strategic state allocations, including Florida, Colorado, and California, contribute to its resilience in economic uncertainties.

        Despite a sizable allocation to Energy Harbor, which is expected to exit the portfolio soon, NHMAX exhibits a compelling distribution yield of 5.65% and an SEC yield of 4.72%.

        In a market environment with less attractive corporate bond credit spreads, NHMAX provides an attractive option for higher tax-bracket investors, offering a potential yield pickup of around 1.7% above high-yield corporate bonds.

        Additionally, NHMAX provides a practical way to add duration to portfolios, making it a compelling choice for investors seeking stability and yield in the current economic landscape.

      5. The India Fund

        The India Fund, Inc. (IFN) stands out as a compelling choice among the best performing mutual funds in November due to its strategic investment approach as well as the promising Indian market landscape.

        Managed by Aberdeen Standard Investments Limited, IFN focuses on small-cap, mid-cap, and large-cap companies in India’s public equity markets.

        Boasting a robust portfolio with under 40 stocks, the fund’s Top 10 holdings contribute over 56% of its total weight, highlighting concentrated yet well-researched investments.

        With $497 million in assets under management and a reasonable fee level of 133bps, IFN offers investors exposure to India’s burgeoning economy.

        The fund pays quarterly dividends, mainly sourced from long-term capital gains, providing consistent returns. Despite its current 0.72% discount, historically low in 2023, IFN’s potential lies in India’s growing middle class, high GDP forecasts, and the shift away from China in global supply chains.

        As India emerges as a key player, IFN positions itself as a promising vehicle for investors seeking growth in this dynamic market.

      Frequently Asked Questions

      What Are Mutual Funds?

      Mutual funds pool money from investors to invest in diverse assets, offering stability by spreading risk. In volatile times, they act as a haven for risk-averse investors.

      How Do Mutual Funds Navigate Market Volatility?

      Mutual funds, like ATRFX, use diversified strategies and resilient approaches, as seen in ATRFX’s “offense-defense” strategy rooted in Markowitz Portfolio Theory.

      What Makes ATRFX Stand Out?

      ATRFX consistently outperforms, with a +16% return in the last 12 months, showcasing resilience even during the 2022 bear market. Its offense-defense strategy and Lipper Award validate its strength.

      Why Consider Funds Like CPLIX In Changing Economic Landscapes?

      CPLIX strategically positions itself defensively in evolving markets, offering a tactical entry point. Its focus on the mid-cycle correction aligns with normalized interest rates, making it a standout choice.

      What’s The Significance of Small-Cap Growth Funds Like CTSIX?

      CTSIX focuses on small-cap growth stocks, historically performing well after S&P 500 rallies. Its bottom-up approach and sector focus make it a timely choice in anticipating market shifts.

      How Does NHMAX Provide Stability and Yield?

      NHMAX excels in the high-yield municipal bond sector, strategically allocating to resilient states. With a 5.65% distribution yield and the potential for a yield pickup, it offers stability and income.

      Why Consider the India Fund for Investment?

      IFN offers exposure to India’s growing economy, strategically investing in small, mid, and large-cap companies. Its concentrated yet well-researched portfolio and dividends make it appealing.

      Can Mutual Funds Help Add Stability to My Portfolio?

      Yes, funds like NHMAX and IFN strategically allocate assets, providing stability and potential returns, making them attractive options in uncertain economic climates.

      What’s The Role of Fees in Mutual Fund Investing?

      A fund’s performance, like ATRFX’s +16% returns, can justify higher fees. Understanding a fund’s strategy and historical performance is crucial in evaluating fee justification.

      How To Choose the Right Mutual Fund for My Investment Goals?

      Consider factors like historical performance, investment strategy alignment with your goals, and the fund’s response to market conditions, as seen in CPLIX’s defensive stance and CTSIX’s growth focus.

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