Top 10 diversified mutual funds in India for 2013


Top 10 diversified mutual funds in India for 2013

Overview – Top 10 diversified mutual funds in India for 2013

There is a negative impression for some of my friends about mutual funds investments in current scenario. Stock markets (SENSEX) have given 8% overall return in the last 3 years which would mean less than 3% per annum. However, I am positive on the diversified mutual funds investments. When I was analyzing the top diversified mutual funds, they have given annualized returns of 9% to 16% in the last 3 years.

What are diversified mutual funds?

Diversified mutual funds invest the money across all the sectors stocks like Banking, Financial services, manufacturing, Pharma, Technology, Healthcare, airlines etc. However the average annual returns among diversified mutual funds are only 4.5%. There are several diversified mutual funds who are under performers and can be eliminated from the group to arrive at actual average returns among the diversified funds.

How we have chosen the best diversified mutual funds:


  1. Past performance: We have considered past performance where the mutual fund has yielded 9% to 16% annualized returns. When Sensex has given 3% annualized returns in the last 3 years, annualised returns of 9%+ would definitely be a good investment options.
  2. Crisil rating: These are rated by Crisil as rank-1 and rank-2, hence it provides highest safety compared to other diversified mutual funds.
  3. High Assets under management (AUM) : High AUM refers that more people are investing in such mutual funds as it gained confidence from large investors. We have considered AUM > Rs 85 crores for the purpose of choosing the best diversified mutual funds.
  4. Long term players: All these mutual funds are existing for more than 5 years, hence they are long term players.

Top 10 diversified mutual funds in India which can be invested for 2013

Top 10 diversified mutual funds in India for Nov 2013

Conclusion: Investment in stock markets are high risky. However under volatile or stagnant market conditions investing in diversified mutual funds are one of the best investment options. Invest in these top 10 diversified mutual funds where Crisil has ranked as Rank-1 and Rank-2 which provides a highest safety for the investments.

Readers, are you investing in these diversified mutual funds in India? Please give your comments

If you found this article is good, share the link in Twitter/Face book. The links are provided below.

Suresh
Myinvestmentideas.com

Disclaimer: Mutual fund investments are risky. Past performance, may or may not repeat in future. Please consult your financial planning advisor before you take an investment decision.


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

49 Comments

  1. Priyajit says:

    Hi suresh,

    I am little bit confused regarding investing in a diversified fund- ICICI Pru dynamic plan (G).I found this scheme has provided arguably best returns in 3-5 yrs tenure having crisil rank -1 && AUM 3352 Cr.But you have not recommended it anywhere so far.is it score less compared to  UTI MNC fund(g) or Reliance equity oppor(G)?

  2. Murugesan says:

    Hi Suresh,

    I'm willing to spend Rs. 11k/month on mutual fund. Already opted HDFC Children Gift – Investment plan (6K). Required to plan for retirement (Currently my age – 29) and marriage of my daughter. Is it good to invest in equity diversified lare cap fund or diversified multi cap fund or balanced fund Please suggest me good SIP mutal fund for the same

    • Suresh says:

      Murugesan, Invest in diversified and large cap funds such as HDFc Top-200, Birla SL Frontline, ICICI Pru focussed blue chip fund, UTI MNC Fund and debt funds like HDFC Prudence etc.,

      • vikram says:

        Hi Suresh,

        I have been investing in HDFC Prudence for last 2 yrs and have got bad negative returns. You still recommend this balanced fund. Any reasons since I am planning to stop my 12k Sip & move to other better balanced funds.

        what do you suggest.

        thanks
        vikram

        • Suresh says:

          Vikram, As indicated in all my earlier articles, go for stocks or mutual funds if you want to invest for long term. HDFC Prudence is a good balanced fund. If you observe this is one of the top 5 funds which gave consistent returns of 19%+annualised returns in last 10+ years. Many MF’s have given good returns earlier, but vanished and sitting in last row in terms of returns. What kind of investor you are ? Please do not invest for short term.

  3. ashish kashyap says:

    hello sir i want to know about mutual funds i have a zero idea. sir me 30 thousand ek saath invest kar du 1 saal ke liye muje kitna intrest milega or koi aur schemes hey to please bataiye

    • Suresh says:

      Ashish, It is not like Bank FD where you would get interest. Here the returns in mutual funds are little risky, you can expect 9% to 15% annualised returns if you invest for long term. If you have 30K invest in debt mutual funds to start with. Don’t expect that you would get good returns in 1 year.

  4. drsanthosh kumar says:

    Hi, suresh

    I read your article on mutual fund investment and have decided to invest in mutual funds for a short period of time. My investment amount is About 1,08,000. If divided in parts will come to 3000 per month for 3 years. I have doubts regarding the type of investment which would do better in these three year interval.

    1. Is it better to invest 500 rupees* 6 Mutual funds*12months*3years = 1,08,000 or

                                    1000 rupees*3 mutual funds*12Months *3years

    2. If 6 mutual funds I have decided to invest as per your lists in

           a. ICIC Pru focused blue chip fund (Large cap)

           b. HDFC mid cap Opportunity fund

           c. Reliance equity opportunity fund (diversified)

           d. Birla SL India Gen next (G)

           e.  UTI india life style fund (G)

           f. IDFC premium equity fund

    (bit confused if I have to invest in 3, but would opt for mid cap and small cap funds and diversified funds)

    3. I had bitter experience of having too many funds, with brokers inability to provide enough information/updates regarding the funds during my previous investment. Online statements have reduced this now. But now bit reluctant. 

    4. Does too many funds pose problems?

    Please provide me with your opinion regarding this investment option and also any changes required.

    Thank you

    Dr Santhosh Kumar

     

    • Suresh says:

      Hi Dr.Santosh kumar, If you already have Rs 1,08,000, why do you want to invest RS 3,000 or any other small amount ? If you want to invest lumpsum under current market conditions, invest in debt mutual funds. If you want to invest through SIP / per month, the portfolio indicated by you is fine. Don’t keep too many mutual funds as it would be difficult to track. Invest in say around 5 mutual funds. Also I have observed that you are investing only in diversified funds. You should diversify your risk by invesing in largcap, diversified, sector based, balanced and debt mutual funds. Please see this popular article where I have given my analyais for 10 MF’s.http://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/

  5. vicky tambe says:

    Hi suresh your ideas are really helpful i have 60lakh rs and i have invested all of them in f.ds is there any other option where i can invest and get good returns.

    • Suresh says:

      Vicky, Looks you have invested only in FD’s. You should diversify your portfolio based on your need. If you want to invest for long term, you can invest in large cap mutual funds and diversified mutual funds. If you are just looking at safe invesmetn options, but want returns above Bank FD, you can look for debt mutual funds. It all depends on the risk appetite and time frame.

  6. Sunil says:

    Hi Suresh, I must admit that you're quite an amazing man who replies to people who you havent met even. I want to invest 60K rupees monthly for the next 2 to 3 years but not able to decide how to split the 60K between yourb top 10 mutual funds for 2013. Could you please guide me?

    Thanks, Sunil

    • Suresh says:

      Good to see that you want to invest your monthly savings in MF. If you observe, I have pickedup these 10 SIP funds across sectors. If you want to look for 2 to 3 years, you can invest in large cap, midcap and diversified mutual funds.

  7. Sunil says:

    Hi Suresh, thanks for answering all our queries.

    I plan to invest 60K rupees monthly for the next 5 years in mutual funds. Please advise if I can go for all the 10 funds listed in your TOP  for 2013 at the rate of 5000 INR x 10 funds? Kindly also advise if you think there are some better investment optiosn for this 60K INR monthly. I will be grateful.

    Best regards

    Sunil

  8. Eeswari says:

    hi

    i m a housewife…i want to invest 5000 in sip MF with 1000 each company…can u suggest me without risk for 5 years which MFs are suitable…..

    • Suresh says:

      Hi Eeswari, since you are looking for safety of your investment, you can invest in debt mutual funds and balanced mutual funds. 1) Balanced mutual funds HDFC Balanced fund, ICICI Balanced fund; 2) Debt funds:SBI Dynamid Bond fund, IDFC Dynamic Bond fund.

      But if you are looking for investments with some risk, you can invest in Large cap mutual funds and diversified mutual funds. ICICI Pru focussed fund, UTI Opportunities fund, Reliance equity opportunities fund. Since you want to invest for 5 years period, the market volatility would be taken care. Happy investing.

  9. Nishanta says:

    I startes SIP under below funds from Oct 2012 .Please let me know are these funds are good to invest for next 5-7 years .. I would like to invest another Rs 2500 in any one of the following funds for next 15 years in direct option , kindly suggest which would be better (Reliance equity opp / Uti Opp) . Waiting for your valuable comments.

    a) ICICI Pru focused blue chip growth=2000/month ( Regular )

    b)HDFC midcap opportunity growth=2000/month ( Regular )

    c)HDFC Prudence growth=2000/month ( Regular )

  10. Jes says:

    Hi Suresh,

    My daughter is 1 year old. I want to start investing in a SIP for  long term around 17 to 18 years for her education. Can you please tell me the Best fund to invest ?  I am planning to invest around 2000/- pm.

    Thanks

    Jes

    • Suresh says:

      Jes, glad that you are planning about your daughter when she is at  1 year old. Pls refer my article on Top-10 mutual funds for SIP. You can pick-up only large cap to start with. Once you are familair with equity markets you can invest in other opportunities. http://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/

      • srini says:

        Hi Suresh,

        I am planning to invest in below mutual funds through SIP for 5 – 10 years duration. Could you please advice on below?

        1)     Please suggest if there are other funds which can perform better than those i am planning to invest

        2)     Am i segregating the money properly or shall i change the money contributions; if so please suggest the amount

        (a) ICICI Prudential Focused Bluechip Equity Fund = 3000 per month

        (b) IDFC Premier Equity Plan A -2500 per month

        (c) HDFC Mid-Cap Opportunities Fund (G) – 2500 per month

        (d) Axis Triple Advantage Fund (G)- 2000 per month

        Also please suggest on the best ways to purchase the above mutual funds

        Thanks in advance

        Cheers

        Srini

         

         

        • Suresh says:

          Srinivas, Here are my views: 1) ICICI-Pru-Foc-Equity-Crisil-1-Performance good-It is under largecap, less risk compared to others, you can invest;  2) IDFC-Premier-Equity-Crisil-1-Performance good-It is under mid-cap segment; As mid-cap, these are high-risk-high returns mutual funds-Good to invest provided you are willing to take some risk; 3) Same with HDFC-Mid-cap; 3) Axis-Triple Adv fund is debt oriented hybrid speciality fund; Crisil do not rank such schemes and the performance is also not that good (12% p.a. in last 3 years). In case you want to invest in debt mutual funds, there are better mutual funds. Pls refer our top-debt mutual funds article and choose one among them. Regd purchasing of mutual funds, if you already have a broker where you can trade mutual funds also, check the transaction charges and please proceed with them. I am yet to analyse which demat account or which broker is charging less transaction charges for mutual funds account etc., Have a good day !!!

          • srini says:

            Thank you suresh for your valuable suggetions.

            Could you please provide your inputs on the below funds

            1. BIRLA  FRONTLINE EQUITY FUND — Growth

            2. RELIANCE EQUITY OPPURTUNITIES FUND— Growth

            Thanks

            Srini

          • Suresh says:

            Srinivas, Reliance equity opportunites fund is already part of my top-10 list. Good to invest. Birla frontline is also good. However the returns compared to other funds are less. If you observe, the top-10 diverfied funds which I recommended earned returns of 9%+. However Birla returns are ranging between 8% to 9%, hence it has not fallen in my top-10. You can still invest in such good mutual funds, or else you can refer other top-9 recommended mutual funds in this article

  11. srinivas says:

    Hi Suresh,

    ICICI Pru Guaranteed savings insurance plan :

     

    Recently i have been approached by financial consultant with the ICICI Pru Guaranteed savings insurance plan policy. I am thinking to invest 5000 per month through SIP for 10 years premium term under this policy. The reason i felt good with this policy returns  or additions are related GSEC bonds means a definite returns are guaranteed. But the maturity amount is not even same as the simple interest amount for the amount paid /invested towards this policy . I am not really keen on life insurance they are offering with this policy. Please find the attached brochure with 5k per month investment for 10 years.

     

    Could you plz provide your inputs on investing this policy. Which one do you suggest among investing the amount in mutual funds (or) in this policy.

     

    Considering the returns quoted in this brochure whats is your inputs on investing 60000 PA in this policy

     

    Waiting for your inputs.

     

    Thanks

    Srinivas

     

    • Suresh says:

      Srinivas, insurance companies specify as “guaranteed”, but in reality it is not that. The returns are not guaranteed. If some one is assuring you for any guaranteed returns, then they are making false statements. Even I would like to know more details by talking to that person. Can you pls share the contact details of the financial consultant to my email id suresh@myinvestmentideas.com.

  12. Anubhav A says:

    Hello Suresh,

    I am a beginner and want to start my first saving plan. I am 24 yrs Unmarried. I earn 17K p.m. as salary and I can save upto 6K p.m. I do not want to go with rd account because of low returns, I want to invest 3 – 4K p.m for long term and 2-3 K which I can withdraw in case if I require. Can you please suggest me some good ways where I can invest.

    As I have told you I am a newbie, Please tell me that whether mutual funds are good or SIP is good for my case. One more thing I may need money after 3-4 years for my marriage, by then my Income will be in between 25K to 30K. Feel fre to ask me more details if this data is not complete.

    Thanking you in advance.

    Anubhav.

  13. john says:

    Please dont investin SBI Mutual funds.

    I invested 5 years before before

    Till no return. SBI fund Managers can start BARBER Shop

    • Suresh says:

      I do not know abour your bad experience of investing in SBI Mutual funds earlier. Please provide the details, so that I can also investigate from my end. I recommended SBI Magnum and SBI FMCG sector mutual funds in Top SIP mutual funds to buy and they have been performing well. You can check the performance in the last 3 to 5 years.

  14. narayana says:

    Thanks for your suggestions suresh. To start investing in Mutual funds,how many funds you recomend to select out all 10 funds..  Can i invest all 10 funds .My longterm goal is 12 yrs..i am planning to allocate 60% equity & 15% gold,15% debt mutual funds.. Do you recommend any other areas for fund allocation(my current age is 32yrs) Thank you Narayana

    • Suresh says:

      Your allocation looks right. From the top-10 SIP recommendations, you choose a few from large cap, a few from sector based and a few from balanced one.

  15. Bastin Raj says:

    Hi,

    I'm new to investing. My monthly salary is 30K.

    I'm planning to invest in SIP's (Rs.5000/month) . Can you please let me know on which SIP's I can invest.

    It's for a long term investment(say around 10yrs).

    Your recomendations and thoughts would be highly appreciated.

  16. Dinesh says:

    Hi Sir,

    The only investment i now do is in LIC with a yearly premium of 26000 RS. I want to invest monthly around 2500 RS is any investment. I am new to this and do not know anything. Please suggest me any good investment plan where i can get good returns for a tenure of 5 yrs or 10 years.

     

    Thanks,

    Dinesh

     

    • Suresh says:

      Dinesh, Since you are new to investing, suggest you to start investing in bank fixed deposits. You can check the latest interest rates on FD article on my blog published last week. Once you increase your savings and you want ot invest more, you can start investing in mutual funds through SIP.

  17. narayana says:

    Hi, I am looking to buy a individual house (Not flat) in bangalore from past two years,But i am not able to buy a house good house with all good papers..I have a cash of 30 L and i can save 1 L per month. Request to plesae guide me where i can invest money and help me some best investment strategy for me..My age is 32 now. My current investments: LIC–26000 per anum–5L policy; Bajaj aliance ULIP–6LPolicy–25000; Tax saving mf–3 L; Bank fixed deposit;10L; remaiing amount is in bank only. Please suggest where i can invest money Thank you Narayana

    • Suresh says:

      Narayana, 1) Your immediate goal is buying a independent house. Hence you cannot invest your 30L for long term. Look only for short term investment plans for max of 1-2 years. You can look for debt mutual funds, bank fixed deposits for 1-2 years till you finalise your house. 2) Regd your 1L savings per month, you can diversify your investments and invest in diversified mutual funds, large cap mutual funds, bank fixed deposits, Gold ETF’s etc., 3) Once you accumulate 2-3 lakhs in short term investment plans, which is required as emergency money, you can start investing in good stocks for long term. You can refer our portfolio diversification article on how to diversify your investments (http://myinvestmentideas.com/2013/01/what-is-diversification-of-portfolio-and-how-to-create-it/)

  18. Vikram says:

    Its really nice reading your articles Suresh. They are super informative to me.

    I have invested in the following 2 SIP's

    1. HDFC Prudence fund (balanced) – SIP of 5000 per month

    2. HDFC Top 200 – SIP of 7000 per month.

    I would like to increase my SIP by another 20000 per month. Do you recommend my increasing these 2 SIPs or can you suggest few new ones. Which would be a better approach ? Also which new ones would u recommend based on what I have.

    I am a bit confused since there are so many SIP's (Large caps, Mid caps etc.) hence would appreciate your recommendations.

    Thanks

    Vikram

  19. K.LAKSHMAN says:

    Dear Sir.,

    I startes SIP under below funds last 10 month.Please let me know are these funds are good to invest.. I would like to invest another 2000 in 2-3 mutual funds.Please suggest.Waiting for your valuable comments.
    1) SBI – Magnum Global Fund -Growth -        Rs2000P.M
    2) HDFC Top 200 – Rs 1000 P.M
    3) ICICI Prudential Dynamic Plan

     

  20. Abhi says:

    Thank You Suresh for your comments.

    I would like to know your suggestion for 2 things.

    A) I want to invest 6000 more through SIP.Please suggest some funds based on my previous investment portfolio. B) I want to invest in gold.Please suggest is it wise to do so.If so,please recommend some funds(ETF/Egold,gold fund). All these funds i want to invest for min 5-7 years.

    Thanks,

    Abhi

    • Suresh says:

      You have already invested in good SIP’s. One more is Reliance opportunities fund, you can invest some amount through SIP in this. Regd Gold ETF’s there is no differentiation among them as they track the underlying asset as “Gold”. However each one of them charge different % of admin and operations charges. This would be small, but you can check the scheme brochure if you want to make even small savings. Since you are investing in gold ETF’s for 5-7 years, suggest you go through SIP. Currently gold rates are getting corrected and I have seen it moved from 32,000 to 30,600. I may not see more downfall except for another Rs 500

  21. Abhi says:

     

    Hi Suresh,

    I startes SIP under below funds last month.Please let me know are these funds are good to invest.. I would like to invest another 5000 in 2-3 mutual funds.Please suggest.Waiting for your valuable comments.

    a) ICICI Pru focused blue chip growth=3000/month

    b)HDFC midcap opportunity growth=2000/month

    c)Mirae asset India opportunities growth=2500/month

    d)SBI emerging business growth=1500/month

    e)UTI opportunities growth=2500/month

    f)IDFC Premier equity plan A growth=2500/month

    Thanks,

    Abhi

    • Suresh says:

      Hi Abhi, Please refer my top SIP recommendations  10 days back. http://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/

      1) ICICI Pru-focussed / HDFC Midcap / UTI Opps / SBI Emerging fund / IDFC premier equity – They are good funds you have choosen and they are part of my recommended SIP portfolio

      2) Mirae asset fund – Though Crisil has ranked-1 based on fundamentals, the returns are 9% p.a. in the last 3 years. We would have got this in bank fixed deposit itself and they are better mutual funds which provide 12%+ annualised returns. You can refer my recommended SIP portfolio of top 10 and choose based on your risk apetite.

      Pls let me know in case you have any further questions.

      Suresh

      myinvestmentideas.com

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