Top 10 Diversified Mutual Funds to invest in India in 2017

Top 10 Diversified Mutual funds to invest in India in 2017Top 10 Diversified Mutual Funds to invest in India in 2017


Post demonetization, many stocks have taken big hit. Large cap and mid-cap mutual funds too took the heat. However, diversified mutual funds were able to sustain and provide higher returns in 2017. Diversified funds invests in large cap stocks, mid-cap stocks and small cap stocks, hence are able to provide good returns compared to other category of mutual funds when such down turns are there. This makes such mutual funds unique from other categories of funds. In this article, I would provide details about top 10 diversified mutual funds to invest in India in 2017. I would also indicate how these diversified mutual funds performed well compared to other class of mutual funds.

Also Read: Best Performing SIP Mutual Funds to invest in India in 2017

What are Diversified Mutual Funds?


If you already aware of this, skip this section.

Diversified also called as multi-cap mutual funds are those which invests in all categories of market capitalization like large cap stocks, mid-cap stocks and small-cap stocks. Its investment objective is not restricted to single market capitalization. Such strategy would explore opportunities in various segments and there are higher changes to maximize the returns.

How we picked up these Top 10 Diversified Mutual funds to invest in India in 2017


These mutual funds are picked based on highest returns received in the last 5 years.

Funds that had limited downside in last 3 months also been given preference.

Funds that gave highest returns with SIP option are given preference.

Funds that are rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 which indicates top performance across various market cycles.

Some of these are not rated by Value research (VRO), hence I have not considered them in this analysis.

AUM (Assets under management) > 100 Crores. This proves investor confidence among these top mutual funds.

Direct plans are not considered.

Some of the funds might be a repetition from my earlier recommendation.

1) Principal Emerging Bluechip Fund


top diversified mutual fund 2017-Principal emerging blue chip fund

Fund Objective: This mutual fund scheme would invest between 65% to 95% in mid-cap stocks that has a market cap compared to benchmark Nifty Midcap 100 Index and 5% to 15% in Small Cap stocks.

Fund Performance: This fund has beaten all its peers and provided 27% annualised returns in last 5 years. Even in the short term of 1 year, it gave 17% returns which prove it as good fund. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 112,000 now. This is one of the best funds to invest for long term of 10 years.

Why to invest: This fund beats all its peers and provided 27% annualised returns in the last 5 years compared to its NIFTY Free float midcap 100 benchmark returns of 18% in a similar period. Even in last 7 years, this fund gave highest returns of  16% compared to benchmark returns of only 10%. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 4-Star. One of the best diversified mutual fund to invest in 2017.

2) L&T India Value Fund


best diversified mutual fund 2017-l&t india value fund

Fund Objective: The Scheme seeks to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, in the Indian markets with a higher focus on undervalued securities. It could also additionally invest in Foreign Securities in international markets.

Fund Performance: This fund has beaten its benchmark and provided 25% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 110,000 now. This is one of the best funds to invest for long term in diversified segment.

Why to invest: This fund beats all its peers and provided 25% annualised returns in the last 5 years compared to its S&P BSE 200 benchmark returns of 13% in a similar period. Even the category average returns are 21%. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star. One of the good diversified and multi-cap mutual fund to invest in 2017.

3) Franklin India High Growth Cos Mutual Fund


top and best diversified mutual fund 2017-franklin india high growth cos fund

Fund Objective:  The fund seeks to achieve capital appreciation through investments in Indian companies/sectors with high growth rates or potential. It will focus on companies offering the best trade-off between growth, risk and valuation. The fund managers will follow an active investment strategy and will be focusing on rapid growth companies which will be selected based on growth, measures such as Enterprise value, growth rate, price/earnings/growth, forwardprice/sales, and discounted EPS.

Fund Performance: This fund has beaten its peers and provided 24% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 102,000 now. This is another best fund to invest for long term.

Why to invest: This fund beats all its peers and provided 24% annualised returns in the last 5 years compared to its NIFTY 500 benchmark annualized returns of 13% in a similar period. Even in last 7 years, the annualized returns from this fund are 15% compared to benchmark returns of 7.6%. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 5-Star. One of the top diversified fund for 2017.

Also Read: Which mutual funds are best for tax saving purpose?

 4) Birla Sunlife Equity Mutual Fund


top diversified mutual fund 2017-birla sl equity fund

Fund Objective:  This mutual fund seeks long term growth of capital and regular income through 90% investment in equities and balance in debt and money market instruments. The scheme would adopt top-down & bottom-up approach of investing and it invests in IPO’s and emerging sectors.

Fund Performance: This fund has beaten its peers and provided 21% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 100,000 now. This is another best fund to invest for long term.

Why to invest: This fund beats all its peers and provided 21% annualised returns in the last 5 years compared to its S&P BSE 200 benchmark returns of 13% in a similar period. Even in last 10 years, this fund gave annualized returns of 12% compared to its benchmark returns of 8%. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 5-Star. One of the top diversified mutual fund to invest in India in 2017.

5) Tata Equity P/E Mutual Fund


best diversified mutual fund 2017-tata equity pe fund

Fund Objective:  The mutual fund aims to provide capital appreciation by investing 70% in stocks having a trailing P/E ratio less than that of the BSE Sensex at the time of investment.

Fund Performance: This fund has beaten its peers and provided 20% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 100,000 now. This is another best fund to invest for long term.

Why to invest: This fund beats all its peers and provided 20% annualised returns in the last 5 years compared to its S&P BSE Sensex benchmark returns of 11% in a similar period. Even in last 10 years, this fund gave annualized returns of 15% compared to benchmark returns of 6.9%. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 2-Star. One of the top and best diversified mutual fund to invest in 2017.

Here are the balance Top 5 Diversified Mutual Funds to invest in India in 2017


balance of top diversified mutual fund 2017

Also Read: Best Monthly Income Plan (MIP) Mutual Funds to invest now

Consolidated list of Top 10 Diversified Mutual Funds to invest in 2017 is listed below


List-of-Top-10-Diversified-Mutual-Funds-to-invest-in-India-in-2017

Conclusion: One should invest in diversified mutual fund portfolio. In case you are investing in small number of funds, best way to get higher returns is to invest in diversified mutual funds. These multi-cap funds help you to overcome market downturns like what we are seeing now and provide superior returns in medium to long term.

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Suresh

Top 10 Diversified Mutual Funds to invest in India in 2017

13 comments

  • Rekha

    Hi Sanket:

    Thank you so much but which one to choose? growth versus dividend types? 

     

  • Rishika

    Your article is indeed informative and useful, Thanks for sharing this article.

  • Rekha

    Hello:

    Your writings are like a GPS in a new city.  I always read many of your articles, however, still a poor investor. however, planning to start right away with some above mentioned Diversified MFs.  When i check i found that with the names you mentioned in the above table, there are extensors like DSP BR Oppurtinuties-G, DSP BR Oppurtinuties-D, DSP BR Oppurtinuties-direct D, DSP BR Oppurtinuties-direct G almost for all the funds mentioned above.  What is the difference? and which one to choose? Can you pls help me understand ?

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