Top 15 Mutual Funds – 5 Star by Value Research – Should you invest?

Top 15 Mutual Funds – 5 Star by Value Research - Should you invest in such fundsTop 15 Mutual Funds – 5 Star by Value Research – Should you invest?


Value Research Online (VRO) rates mutual funds as 1 star to 5 Star. Mutual funds that are rated 5 stars are considered as best mutual funds to invest. They rate the mutual funds categorized in large cap, midcap, multi-cap, tax saving and hybrid category. What is the Star Rating of Mutual Funds by Value Research Online? Which are the top 15 mutual funds that are 5 star rated by Value Research? Should you invest in 5 Star rated funds of VRO?

What is Value Research Online?


Value Research Online provides investment advice, analysis and information through their website www.valueresearchonline.com, its two magazines and through the books they publish. They cover nearly the entire range of investment avenues available in India, including mutual funds, stocks and fixed-income investment options.

Also Read: Top 4 Mutual Funds from Motilal Oswal – Buy Right Sit Tight – How good are these funds?

What is the Star Rating given by VRO for Mutual Funds?


VRO categorized all mutual fund schemes in 1 Star, 2 Star, 3 Star, 4 star and 5 Stars. 5 Stars means these are top funds in the category which indicates that an investor can consider investing in such fund. 1 Star means, they are worst funds in the respective category which indicates that investors should stay away from such funds.

The Value Research Fund Rating is determined by subtracting the fund’s Risk Score from its Return Score. The resulting number is then assigned according to the following distribution:

1) *****  Top 10%

2) ****   Next 22.5%

3) ***     Middle 35%

4) **      Next 22.5%

5) *       Bottom 10%

Top 15 Mutual Funds – 5 Star Rating by Value Research – Should you invest?


As on last week, VRO classified 15 mutual funds as 5 Star across various categories.

Large cap Mutual Funds – 5 Star rated

As on 3rd March, 2017, VRO classified 6 mutual funds as 5 Star category in Large cap segment.

Top#1: SBI Blue Chip Fund


Fund Objective: The scheme would invest in stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index.

Fund Performance: This fund has beaten its benchmark and provided 19% annualised returns in last 5 years compared to benchmark returns of 12%. It also gave 12% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 92,000. Value Research rates this as 5 Star considering all these parameters. I have recommended this fund as part of one of the best Mutual Funds to invest now in 2017 in Large cap funds segment earlier.

Top#2: Mirae Emerging India Opportunities Fund


Fund Objective:  The scheme aims to maximize long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.

Fund Performance: This fund has beaten its benchmark and provided 19% annualised returns in last 5 years compared to its benchmark returns of only 12%. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 96,000. It is now one of the good Mutual Funds to invest now in 2017.

Top#3: Birla SL Frontline Equity Fund


Fund Objective:  This fund aims to generate long term growth of capital by diversifying across various industries/sectors in BSE 200.

Fund Performance: This fund has beaten its benchmark and provided 17% annualised returns in last 5 years (benchmark gave only 12%) and 15% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 90,000. This is my favorite fund and is one of the good consisting performing mutual funds in the last 10 years.  

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Top#4: Birla SL Top 100 Fund


Fund Objective: The scheme invests predominantly in a diversified portfolio of equity and equity related securities of top 100 companies based on market capitalization. The scheme may also invest in ADR/GDR & equities of listed overseas companies.

Fund Performance: This fund has beaten its benchmark and provided 18% annualised returns in last 5 years (against benchmark returns of 12%). Even in last 10 years, this has provided over 13% annualized returns. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 91,000. Hence VRO ranked this as one of the best mutual funds among 15 funds that are 5 started rated.

Top#5: Quantum Long Term Equity Fund


Fund Objective: The scheme aims to achieve long-term capital appreciation by investing primarily in shares of companies that are typically included in BSE 200 Index and attractively priced in the market when compared to the Investment Managers valuation of the company.

Fund Performance: This fund has beaten its benchmark and provided 16% annualised returns in last 5 years and 15% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 92,000.

Top#6: Reliance Top 200 Fund


Fund Objective: The scheme will invest in equity or equity related instruments of companies whose market capitalization is within the range of highest and lowest market capitalization of BSE 200 index.

Fund Performance: This fund has beaten its benchmark and provided 16% annualised returns in last 5 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 90,000. However, there are better funds in large cap segment. 

5 Start Rated – 4 Multicap Funds


Top#7 – Franklin India High Growth Cos Mutual 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, forward price/sales, and discounted EPS.

Fund Performance: This fund has beaten its benchmark and provided 23% annualised returns in last 5 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 104,000. One of the top consistent performing mutual funds to invest in India.

Top#8 – Birla Sunlife Equity Mutual 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 benchmark and provided 21% annualised returns in last 5 years and 13% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 104,000.

Top#9 – ICICI Value Discovery 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 benchmark and provided 21% annualised returns in last 5 years and 18% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 100,000. Value Research rates this as 5 Star considering these parameters.

Also Read: Dmart IPO / Avenue Supermarts IPO – What are the hidden factors in this IPO?

Top#10 – SBI Magnum Multicap 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 benchmark and provided 19% annualised returns in last 5 years and 11% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 100,000. Value Research rates this as 5 Star considering these parameters.

Midcap Funds – 5 Star Rated


Top#11: Mirae Asset Equities Blue Chip Fund


Fund Objective: This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have a market capitalization of at least Rs.100 Crores at the time of investment.

Fund Performance: This fund has beaten its benchmark and provided 29% annualised returns in last 5 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 127,000. One of the best SIP Mutual Fund to invest in 2017.

Top#12 – 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 24% annualised returns in last 5 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 113,000. Value Research rates this as 5 Star considering these parameters.

5 Star Rated Tax Saving ELSS Funds


Top#13: Axis Long Term Equity Fund


Strategy of the ELSS fund: The ELSS scheme is to generate regular long term capital growth from a diversified portfolio of equity and equity related securities in India. The MF Scheme will invest in a company that has strong growth and sustainable business model.

Fund Performance: This fund has beaten its benchmark and provided 21% annualised returns in last 5 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 96,000. Value Research rates this as 5 Star considering these parameters.  One of the good tax saving mutual fund to invest which I have been recommending for the past few years. 

Top#14: DSP BR Tax Saver Fund


Strategy of the ELSS fund: The mutual fund scheme aims to generate medium to long-term capital appreciation from a diversified stock portfolio of equity and equity related securities along with tax savings.

Fund Performance: This fund has beaten its benchmark and provided 20% annualised returns in last 5 years and 15% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 99,000. Value Research rates this as 5 Star considering these parameters. Even this one, I have been recommending as good tax saving fund.

Also Read: Best Tax Saving Mutual Funds funds for 2017-2018

5 Star Rated Balanced / Hybrid Funds


Top#15: SBI Magnum Balanced Mutual Fund


Fund Objective: The fund scheme aims periodic returns and long-term capital appreciation from a balanced portfolio of debt and equity.

Fund Performance: This fund has beaten its benchmark and provided 18% annualised returns in last 5 years and 12% annualized returns in last 10 years. If one would have invested Rs 1,000 per month for 5 years, the total investment would have been Rs 60,000 and investment value by now would have been Rs 90,000. Value Research rates this as 5 Star considering these parameters.

Summary of all Top 15 mutual funds is here


Top 15 Mutual Funds – 5 Star by Value Research

Conclusion: All these funds are already recommended by me earlier as part of various articles. VRO reviews such ratings once in a quarter. One should not get confused when such rating downgrades in short term. Invest in consistent performing mutual funds for long term to get highest returns.

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Suresh

Top 15 Mutual Funds – 5 Star by Value Research

14 comments

  • Maj Gen SCChopra

    I intend to invest on behalf of my sis in law recently widowed.She is 57 yrs old.My plan is to invest 1.5 lakhs in BSL Tax. Relief 96 every year as she is family pensioner in20/30 % bracket.Beside above she will invest 30 lakhs in equity funds.Funds selected are:_

    SBI Bluechip_large cap…7.5lac

    BSL Equity…Multi cap..7.5la

    HDFC balance fund….7.5lac

    Icici Pru Balance…7.5 lacs

    Initially the above amounts will be parked in liquid/ultra short term plans of linked AMCs and shifted to above funds viaSTPs over 18 months.

    She will keep approx 20 to 25 lacs in 2 in 1 SB a/c for short term goals such as daughters wedding and emergency fund etc.

    She is a 1st time MF investor..Please advise on funds and plan on the whole.

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