The market looks very positive and all equity mutual funds showing huge returns. So which one to choose, those who are consistent or those which given 60% to 70% return in this booming market? Let us short-list the funds for your investment in mutual funds for 2015.
Note-I published the new Mutual Fund list for 2016 !!! Visit my blog’s latest posts for the same at
Before proceeding, last year I wrote a post “Best 10 Mutual Funds to Invest in India for 2014“. So let us review how those funds are performing. Then we proceed to this year’s choice.
Note-All values are taken from valueresearchonline and values are as of today.
How I am selecting funds?
Why I have chosen 10 funds only?
I know lots of us have wrong belief that having so many funds across fund houses will actually diversify our portfolio. It is totally a wrong concept. You forget to understand the underlying stocks each fund holding or your overall portfolio holding. Therefore, it creates to such huge risk that our investment may be highly exposed to specific sectors or stocks. In addition, it is one more misconception that few go on add funds for each of their goals or fresh investments. This also not a better idea. Instead, stick 3-4 funds maximum and invest in them. This keeps your head cool, simple, and easy to track.
Best 2 Large Cap Funds to Invest in India for 2015
I short listed the funds and found that these two below funds are my best choice. Because of their expense ratio, lower standard deviation to their peers, higher alpha, lower beta and high in Sharpe ratio and Sortino ratio.
I stayed away from few Index funds, which have a less expense ratio, but AUM also not fits into my comfort. However, if AUM does not matter to you then you consider some Index Funds too. I stayed away from HDFC Top 200 Fund only because of higher standard deviation to above funds. Otherwise, I strongly advocate towards that fund.
Best 2 Large and Mid Cap Funds to Invest in India for 2015
When you compare this year choices to previous year’s,you find that both of earlier funds missing. I removed UTI Opp Fund, because it moved to large cap. I removed Quantum only because of ICICI’s superior performance compared to Quantum (even though Quantum claims to be less expensive fund).
Best 2 Mid and Small Cap Funds to Invest in India for 2015
Here you notice that I retained Reliance Equity Opp Fund, but discarded the IDFC Premier Equity Fund. It does not mean that IDFC Fund is bad. However, the results in my review were almost neck-to-neck between HDFC, IDFC, and Reliance. I selected HDFC only because of its superiority in higher alpha and Sharpe ratio. In addition, when you look at return wise, I found HDFC holds better than IDFC.
Best 2 Balanced Funds Equity Oriented to Invest in India for 2015
I retained the same old funds, which I recommended previous year. Therefore, no change in it.
Best 2 Tax Saving Mutual Funds (ELSS) to Invest in India for 2015
Here again, I deleted one fund and retained the previous year recommended fund. I deleted Canara Robeco only because I felt low alpha and Sortino ratios. Also, compare to above two funds Canara Robeco seems to be costly when we consider expense ratio.
Do remember that to construct a portfolio it does not require to have a fund from each category. Construction of portfolio again depends on one’s requirement, risk-taking ability, period of the goal and many more things.
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View Comments
Any suggestion on alteration of selection
Kushal-It is hard for me to guide blindly.
Hi Basu
I just selected considering portfolio would have Large cap 40% and mid cap 30% and small cap 30%
I chooses diversified fund by thinking to have for longer duration around 5-8 years and Franklin and DSP /L&T india (Mid cap and Small cap) for duration upto 3-5 years.
Please suggest your valuable input for any alteration in selecting the fund.
My objective is to invest around 4K -5K p.m for (diversified for longer duration and mid/small for upto 3-5 years).
Kushal-What about debt portfolio?
Hi,
I have planned to invest in equity funds as of now.
Hi Basu
I Have started SIP in mutual funds and below are my selection for future investement and time horizon would be 5-8 Yrs.
Can you please let me know your view and which funds should I select
1. ICICI Value discovery Direct growth - 1K
2. Franklin I smaller company fund direct growth - 1K
3. DSP blackrock Micro cap direct fund - growth - 500
4. Franklin india High growth co fund - 1K
5. L&T India Value fund - 1K
6. SBI Bluechip fund direct
Kushal-On what basis you selected these funds?
I just selected considering portfolio would have Large cap 40% and mid cap 30% and small cap 30%
I chooses diversified fund by thinking to have for longer duration around 5-8 years and Franklin and DSP /L&T india (Mid cap and Small cap) for duration upto 3-5 years.
Please suggest your valuable input for any alteration in selecting the fund.
My objective is to invest around 4K -5K p.m for (diversified for longer duration and mid/small for upto 3-5 years).
Sir plz answer the query asked in the previous post
Basu Sir first of thank you very much for running such high quality financial education portal in India.
Information like this is so difficult as no school, colleage, university provide such practical knowledge which impact our day to day life so much.
I have regular visitor since many last couple of month since and if you remember I pinged you too on facebook too couple of times recently :)
After lot of depth knowledge, analysis and conversation with u on fb I invested Rs 5000 in each following 5 mutual fund as long term investment (upto 10 years) with total mindset of getting good return on investment. I will invest similar amount each year in mutual funds and see how it goes. My goal is just to get good return on investment.
Franklin India Smaller Companies Fund
HDFC BALANCED FUND - GROWTH
Mirae Asset Emerging Bluechip Fund Growth
Franklin India PRIMA PLUS GROWTH
HDFC Short Term Opportunities Fund - Growth
As this is my first investment in mutual funds with no much knowledge. Whatever I learned was thru your website or websites like money control etc. However if we feel too scared or think too much of risk then probably will never be able to start and hence I took my first step, hope it goes will and open new pages of knowledge and experience. Look forward to receive your feedback on my choice.
Thanks & Best Regards,
Deepak-We already discussed this in our FB chat.
Sir plz analyse my portfolio.time frame is a10 years
1ELSS :icici long term equity fund tax saving.i am already investing 4000 sip in this fund
2)SMALL AND MIDCAP:franklin india smaller company or franklin india prima.p lz suggest
3)large: franklin india blue chip or sbi bluechip or birla sunlife frontline equity fund.plz suggest
4)plz suggest one midcap fund.
I am already having debt portfolio in term of ppf pli shukanya of about 70000 per year
Dear Sir
I have 1 Cr to invest for 10+years
My goal is to have around 25-30% annual return.
Will u be kind enough to share ur views based on ur vast experience and knowledge, keeping urself in my position, as to how u would achieve these goals.
P.s. Tax saving is uptodate, no immediate requirement of money God willing. Already in 30% bracket.
Regards
VS-First, 25-30% is highly expected return. My expectation from equity for such long-term goals is 12%. Are you ready to expect this much?
Thanks for reply
12% annualised?
I have heard high returns from mf.
I m not an expert like you but My NSC gives me 8.99% annualised returns with no risk involved and capital absolutely secured.
So my query or shall i use the word expectation from mf on account of capital risk involved may be on a higher side.
So my original question again """"Will u be kind enough to share ur views based on ur vast experience and knowledge, keeping urself in my position, as to how u would achieve these goals."""
P.s. dont feel offended by my use of words. I have great respect for u and ur kNowlecge having read ur posts extensively.
Regards
Vs-High returns expectation also comes with high risk. Again, HIGHER side means? 9%, 15% or 25%?? Don't put your goal in my basket. Each individual is different and the risk I will take may be laughing for you or you may feel HIGH RISKY. So don't try to compare.
HI Basu sir,
Could you please review my below portfolio
Large Cap / Multi Cap ( CORE Fund)
Quantum Long Term Equity fund : SIP- Rs 4000
PPFAS - Long Term Equity - Rs 1000 SIP
Large Cap:
SBI Blue Chip - Growth - Rs 1000 SIP
Mid Cap:
Mirae Emerging Bluechip Fund (G)- Rs 2000 SIP
Small Cap:
DSP BlackRock Micro Cap fund growth - Rs 2000 SIP
Diversified Fund:
Franklin High Growth Companies - Rs 1000 SIP
ICICI Value discovery fund - Rs 1000 SIP
Balanced Fund:
HDFC Balanced fund growth : Rs2000 SIP
Franklin India Balanced Fund -Growth - Rs 2000 SIP
Long term Debt Fund:
HDFC High Interest fund dynamic plan (G) : Rs 1000 SIP
Short Term debt:
Birla SL Dynamic Bond Fund Growth - Rs 1000 SIP
Credit Opportunities fund:
DSP BR Income Opportunities Fund (G): Rs 1000 SIP
I have formatted it in a better way.
Large Cap / Multi Cap ( CORE Fund)
Quantum Long Term Equity fund : SIP- Rs 4000
PPFAS - Long Term Equity - Rs 1000 SIP
Large Cap:
SBI Blue Chip - Growth - Rs 1000 SIP
Mid Cap:
Mirae Emerging Bluechip Fund (G)- Rs 2000 SIP
Small Cap:
DSP BlackRock Micro Cap fund growth - Rs 2000 SIP
Diversified Fund:
Franklin High Growth Companies - Rs 1000 SIP
ICICI Value discovery fund - Rs 1000 SIP
Balanced Fund:
HDFC Balanced fund growth : Rs2000 SIP
Franklin India Balanced Fund -Growth - Rs 2000 SIP
Long term Debt Fund:
HDFC High Interest fund dynamic plan (G) : Rs 1000 SIP
Short Term debt:
Birla SL Dynamic Bond Fund Growth - Rs 1000 SIP
Credit Opportunities fund:
DSP BR Income Opportunities Fund (G): Rs 1000 SIP
John-Do these many funds required?
Hello Basu sir,
I am looking to invest in ICICI bank as they want me to invest minimum 50k/year so that i can get meet my locker requirement.As i have been looking for locker so i decided to invest 50k/year with ICICI.Can you please suggest 1 MF which will give me high returns.I am long term investor min 10 years.Please suggest where to invest in ICICI.
Devendra-Where is the rule that to get locker one must invest Rs.50k? They are selling their product to meet their sales target. Rest is left with you to decide.
actually they want me to build relation with them.So they want some investment towards their product so they can give preference on that basis.
Devendra-Ha ha...relation building will be based on what service they provide to you. Not by investing as per their choice. Let them provide the quality service, then relation will automatically build.
yes true :)
I saw your blog on best mutual fund to invest in 2016 there i saw you suggested to invset in ICICI Pru Discovery.Should i consider this for SIP investment of monthly 2000
Devendra-It is purely left with you. But what I am pointing is that what they are doing is completely illegal and you are being used as scapegoat. Decide and act.
So which MF would you suggest from ICICI which will give higher returns.
Devendra-NONE.
waiting for your valuable suggestion.