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:
- 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.
- Crisil rating: These are rated by Crisil as rank-1 and rank-2, hence it provides highest safety compared to other diversified mutual funds.
- 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.
- 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
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.
- HDFC Manufacturing Fund NFO – Should you invest? - April 18, 2024
- How a 5K SIP Can Fetch You Rs 1.8 Lakhs per Month Fixed Income in Mutual Funds in 30 Years? - April 16, 2024
- Bandhan Innovation Fund NFO – Issue Details and Review - April 14, 2024
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
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 (https://myinvestmentideas.com/2013/01/what-is-diversification-of-portfolio-and-how-to-create-it/)
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
Vikram, Please refer my top SIP recommendations. These 10 SIPs’s are good. Based on your risk apetite, you can invest in them. https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/
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
Lakshman, SBI-Mangun is good; Instead of HDFC Top200 and ICICI Pru dynamic plan, they are other good SIP’s which you can get higher returns. Pls refer my top-10 SIP’s to invest. https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/. I am not saying what you have indicated are bad, but I am saying that others are giving more returns, then why do you compromise in such mutuals who are following the winners?
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
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
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
Hi Abhi, Please refer my top SIP recommendations 10 days back. https://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