50 Best Mutual Funds to Invest in 2012

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 EquityActive management; not a chart topper across market cycles, but a consistent performer.
Franklin India BluechipSticks to mandate, has a tight portfolio and avoids frequent churning.
Franklin India Index NSE NiftyLow tracking error, low expense ratio and one of the largest Nifty index funds.
Goldman Sachs – Nifty ETSErstwhile Benchmark AMC’s schemes retained; fund has high liquidity, low tracking error and low expenses.
ICICI Prudential – Focused Bluechip EquityGrowth in corpus has made it slightly more diversified; performance continues across market cycles.
Kotak – Sensex ETFIt tracks Sensex, adding to your choice of indices. ETFs and index funds avoid fund manager’s risk
Equity – LargeCap & MidCap
Birla Sun Life – Frontline EquityLess exposure to consumer goods and high exposure to capital goods hurt performance.
Fidelity – EquityCash levels went up in 2011; invested in defensive sectors such as pharmaceuticals; invested in some mid-cap scrips too.
Franklin India Prima PlusLarge-cap exposure went up; holdings in telecom sector companies helped its performance in 2011.
HDFC – Top 200Consistency in top holdings. Has at least 60% of its holdings with its benchmark, BSE 200 index.
Mirae Asset – India OpportunitiesFocuses on cash generating companies. Manages 15-20% of the portfolio actively and opportunistically.
ICICI Prudential – DynamicDespite a mandate to hold cash in volatile markets, the fund deployed cash; portfolio tightened in 2011.
UTI – Equity DivInvests roughly 25% in mid-caps; the fund manager is bullish on infra, banking and IT sector.
Equity – LargeCap & MidCap Satellite 
UTI – Dividend YieldUTI – Dividend Yield Invests 65% of corpus in high dividend yield stocks; doesn’t hesitate going away from benchmark index.
Equity – MultiCap
AIG – India Equity RegularStar performer of 2011; focuses on cash generating companies and actively manages portfolio.
Templeton India Growth DivPoor performance in 2011, but we hold. This is a value fund and has a good long-term track record.
Goldman Sachs – Nifty Junior BeESTakeover by Goldman Sachs doesn’t seem to be a worry yet.
HDFC – EquityExposure to banks and infra goes up; portfolio gets aggressive as fund manager expects market to go up.
Quantum – Long Term EquityAims 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 DivSplits portfolio between large- and mid-caps. Churns large-caps more actively than mid-cap holdings.
IDBI – Nifty Junior IndexDespite short history, the scheme has a low tracking error and expenses.
Reliance – Regular Savings EquityAggresively managed; soars in rising markets, but falls hard in falling markets; 2012 will be crucial.
Tata – Equity PEDiversifies 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 RegularMore diversified than DSP BR Micro Cap, sticks to mandate; growth in corpus will not affect it for now.
HDFC – Mid Cap OpportunitiesMarginally increased exposure to large-cap stocks towards the year-end; doesn’t mind growth in corpus.
IDFC – Premier Equity Plan AStays away from companies that borrow heavily. Consistent holdings; doesn’t churn much.
Religare – Mid CapDespite staying true to its mandate, fund limited its losses. Avoids taking cash calls
Equity – MidCap & SmallCap Satellite
DSP BlackRock – Micro CapA risky fund, most of its losses in 2011 came in December. Picks up performer companies.
Equity – Tax Planning 
Fidelity – Tax AdvantageHigh exposure in some banking stocks and underweight in consumer goods slowed down its performance.
HDFC – TaxsaverTilts slightly towards large-caps, but also takes large exposures in small- and mid-caps
Religare – Tax PlanSmall corpus should bode well for the fund when markets rebound on their way up.
Equity – Infrastructure
AIG – Infrastructure and Economic ReformFollows the “infrastructure” definition given by the Planning Commission.
Canara Robeco – InfrastructureIts investments in the cement sector paid off well last year; cut exposure to banking sector
Hybrid – Equity Oriented
HDFC – BalancedEquity exposure is lower than many peers, but the fund invests more in mid-cap stocks.
HDFC – PrudenceInvests across market caps; increased maturities of its debt scrips in 2011
Hybrid – Equity Oriented Satellite 
Birla Sun Life – 95 DivSteady performer, but not your first choice in this category; agressively managed.
DSP BlackRock – BalancedEquity 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 FoFA fund-of-funds that switches between equity and debt depending on Nifty’s price-earnings multiple.
Hybrid – Debt-oriented Conservative
Birla Sun Life – Monthly IncomeCan invest 15% in equities. Invests in dividend yielding scrips for regular cash flow.
Canara Robeco – MIP MonthlyCan hold up to 20% in equities, but currently has 17% in equities. A consistent performer.
HDFC – MIP Long TermA good pedigreed fund that has delivered consistent returns. Invests up to 25% in equities.
HDFC – MIP Short TermPrefers to invest 15% in equities, but can go up to 25%. Good pedigreed fund with consistent returns
Reliance – MIPIncreased maturities mainly through G-secs and AAA-rated bonds issued by government-owned firms.
Hybrid – Debt-oriented Conservative Satellite 
Birla Sun Life – MIP II SavingsDid well in 2011 due to low equity exposure; should do well in 2012 once interest rates start falling.
UTI – Monthly Income SchemeSticks to large-caps on the equity side. Increased maturities to about four years in anticipation of rate cuts.
Debt – Short Term 
AIG – Short TermLimited losses in 2011 by actively managing its average maturity. Prefers CDs to keep portfolio liquid.
Canara Robeco – Short TermA low maturity helped protect its downside in 2011. Takes calculated exposures in corporate papers and CDs.
Templeton India Short Term IncomePrefers to hold corporate bonds; increased maturity in anticipation of interest rates falling in 2012.
Debt – Short Term Satellite 
SBI – Short Horizon Debt Short TermHolds a mix of corporate papers and commercial deposits issued by banks.
UTI – Short Term IncomeOf late, the fund has increased its average maturity. Invests in non-convertible debentures and CDs

 

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