With more than 1000 Mutual Funds, how do you select the best Mutual Funds for you? Ask the experts!
Mint newspaper comes out with a list of 50 Mutual Funds every year. Below is the list of Mutual Funds for 2012 (Mint50) along with the reasons for recommendation.
| Equity – LargeCap | |
| DSP BlackRock – Top 100 Equity | Active management; not a chart topper across market cycles, but a consistent performer. |
| Franklin India Bluechip | Sticks to mandate, has a tight portfolio and avoids frequent churning. |
| Franklin India Index NSE Nifty | Low tracking error, low expense ratio and one of the largest Nifty index funds. |
| Goldman Sachs – Nifty ETS | Erstwhile Benchmark AMC’s schemes retained; fund has high liquidity, low tracking error and low expenses. |
| ICICI Prudential – Focused Bluechip Equity | Growth in corpus has made it slightly more diversified; performance continues across market cycles. |
| Kotak – Sensex ETF | It tracks Sensex, adding to your choice of indices. ETFs and index funds avoid fund manager’s risk |
| Equity – LargeCap & MidCap | |
| Birla Sun Life – Frontline Equity | Less exposure to consumer goods and high exposure to capital goods hurt performance. |
| Fidelity – Equity | Cash levels went up in 2011; invested in defensive sectors such as pharmaceuticals; invested in some mid-cap scrips too. |
| Franklin India Prima Plus | Large-cap exposure went up; holdings in telecom sector companies helped its performance in 2011. |
| HDFC – Top 200 | Consistency in top holdings. Has at least 60% of its holdings with its benchmark, BSE 200 index. |
| Mirae Asset – India Opportunities | Focuses on cash generating companies. Manages 15-20% of the portfolio actively and opportunistically. |
| ICICI Prudential – Dynamic | Despite a mandate to hold cash in volatile markets, the fund deployed cash; portfolio tightened in 2011. |
| UTI – Equity Div | Invests roughly 25% in mid-caps; the fund manager is bullish on infra, banking and IT sector. |
| Equity – LargeCap & MidCap Satellite | |
| UTI – Dividend Yield | UTI – Dividend Yield Invests 65% of corpus in high dividend yield stocks; doesn’t hesitate going away from benchmark index. |
| Equity – MultiCap | |
| AIG – India Equity Regular | Star performer of 2011; focuses on cash generating companies and actively manages portfolio. |
| Templeton India Growth Div | Poor performance in 2011, but we hold. This is a value fund and has a good long-term track record. |
| Goldman Sachs – Nifty Junior BeES | Takeover by Goldman Sachs doesn’t seem to be a worry yet. |
| HDFC – Equity | Exposure to banks and infra goes up; portfolio gets aggressive as fund manager expects market to go up. |
| Quantum – Long Term Equity | Aims to hold at least 2% in individual scrips. Exits scrips quicker if valuations soar. Can hold high cash level |
| Equity – MultiCap Satellite | |
| DSP BlackRock – Equity Regular Div | Splits portfolio between large- and mid-caps. Churns large-caps more actively than mid-cap holdings. |
| IDBI – Nifty Junior Index | Despite short history, the scheme has a low tracking error and expenses. |
| Reliance – Regular Savings Equity | Aggresively managed; soars in rising markets, but falls hard in falling markets; 2012 will be crucial. |
| Tata – Equity PE | Diversifies into mid-caps; invests in stocks whose price-earning multiple is less than that of Sense |
| Equity – MidCap & SmallCap | |
| DSP BlackRock – Small and Mid Cap Regular | More diversified than DSP BR Micro Cap, sticks to mandate; growth in corpus will not affect it for now. |
| HDFC – Mid Cap Opportunities | Marginally increased exposure to large-cap stocks towards the year-end; doesn’t mind growth in corpus. |
| IDFC – Premier Equity Plan A | Stays away from companies that borrow heavily. Consistent holdings; doesn’t churn much. |
| Religare – Mid Cap | Despite staying true to its mandate, fund limited its losses. Avoids taking cash calls |
| Equity – MidCap & SmallCap Satellite | |
| DSP BlackRock – Micro Cap | A risky fund, most of its losses in 2011 came in December. Picks up performer companies. |
| Equity – Tax Planning | |
| Fidelity – Tax Advantage | High exposure in some banking stocks and underweight in consumer goods slowed down its performance. |
| HDFC – Taxsaver | Tilts slightly towards large-caps, but also takes large exposures in small- and mid-caps |
| Religare – Tax Plan | Small corpus should bode well for the fund when markets rebound on their way up. |
| Equity – Infrastructure | |
| AIG – Infrastructure and Economic Reform | Follows the “infrastructure” definition given by the Planning Commission. |
| Canara Robeco – Infrastructure | Its investments in the cement sector paid off well last year; cut exposure to banking sector |
| Hybrid – Equity Oriented | |
| HDFC – Balanced | Equity exposure is lower than many peers, but the fund invests more in mid-cap stocks. |
| HDFC – Prudence | Invests across market caps; increased maturities of its debt scrips in 2011 |
| Hybrid – Equity Oriented Satellite | |
| Birla Sun Life – 95 Div | Steady performer, but not your first choice in this category; agressively managed. |
| DSP BlackRock – Balanced | Equity portion is managed almost similarly to DSP BR Equity; like Birla ’95, this one is not your first choice |
| Hybrid – Asset Allocation | |
| Franklin Templeton – FT India Dynamic PE Ratio FoF | A fund-of-funds that switches between equity and debt depending on Nifty’s price-earnings multiple. |
| Hybrid – Debt-oriented Conservative | |
| Birla Sun Life – Monthly Income | Can invest 15% in equities. Invests in dividend yielding scrips for regular cash flow. |
| Canara Robeco – MIP Monthly | Can hold up to 20% in equities, but currently has 17% in equities. A consistent performer. |
| HDFC – MIP Long Term | A good pedigreed fund that has delivered consistent returns. Invests up to 25% in equities. |
| HDFC – MIP Short Term | Prefers to invest 15% in equities, but can go up to 25%. Good pedigreed fund with consistent returns |
| Reliance – MIP | Increased maturities mainly through G-secs and AAA-rated bonds issued by government-owned firms. |
| Hybrid – Debt-oriented Conservative Satellite | |
| Birla Sun Life – MIP II Savings | Did well in 2011 due to low equity exposure; should do well in 2012 once interest rates start falling. |
| UTI – Monthly Income Scheme | Sticks to large-caps on the equity side. Increased maturities to about four years in anticipation of rate cuts. |
| Debt – Short Term | |
| AIG – Short Term | Limited losses in 2011 by actively managing its average maturity. Prefers CDs to keep portfolio liquid. |
| Canara Robeco – Short Term | A low maturity helped protect its downside in 2011. Takes calculated exposures in corporate papers and CDs. |
| Templeton India Short Term Income | Prefers to hold corporate bonds; increased maturity in anticipation of interest rates falling in 2012. |
| Debt – Short Term Satellite | |
| SBI – Short Horizon Debt Short Term | Holds a mix of corporate papers and commercial deposits issued by banks. |
| UTI – Short Term Income | Of late, the fund has increased its average maturity. Invests in non-convertible debentures and CDs |
You can download the pdf format from Mint’s website here.