Top 20 Mutual Funds – 5 Star by Value Research in 2019 – Should you invest?

Top 20 Mutual Funds - 5 Star by Value Research in 2019Top 20 Mutual Funds – 5 Star by Value Research in 2019 – Should you invest?


Generally, we invest in mutual funds based on recommendations from mutual fund experts or based on the ratings provided by Value Research Online (VRO),  Crisil Ranking or from Morning Star Ratings. Value Research Online (VRO) rates the mutual funds as 1 star to 5 Star. Mutual fund schemes that are rated 5 stars are considered as best mutual funds to invest in India. VRO rate the mutual funds from various segments like large cap, midcap, multi-cap, tax saving and hybrid category. How Star Rating of Mutual Funds computed by Value Research Online?Which are the Top 20 Mutual Funds that are 5 star rated by Value Research in 2019? Should you invest in 5 Star rated funds of VRO in 2019 or avoid?

Also Read: Top 10 High Return Funds to invest in 2019

Who are these Value Research Online team?


Value Research Online (Popularly known as VRO) provides mutual fund analysis, stock advice, investment advice and equity related information through their website www.valueresearchonline.com, from various 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.

How Star Rating of Mutual Funds computed by Value Research Online?


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 respective mutual fund category and investors can invest in such funds. 1 Star means, they are worst funds in the respective mutual fund category which indicates that investors should stay away from such funds.

Value Research adopts some strategy in computing the mutual fund rating. 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 in the respective sectors:

1) 5 Stars are assigned to Top 10% of mutual funds.

2) 4 Stars are assigned to the next 22.5 % of mutual funds.

3) 3 Stars are assigned to next 35% of mutual funds.

4) 2 Stars are assigned to the next 22.5 % of mutual funds.

5) 1 Star is assigned to bottom 10% of mutual funds.

One should note that Value Research rates the mutual funds based on past performance and does not consider its future potential or future prospects. One can understand more about Value Research Fund Ratings here.

Top 20 Mutual Funds – 5 Star by Value Research in 2019 – Should you invest?


While we already posted an article about 5 star funds from balanced fund category last week, we would like to cover Top 20 Mutual Funds in Equity Segment (Other than Balanced funds and debt funds) that are rated by Value Research Online as 5 Star funds now.

1) They have rated 4 funds as 5 star from the large cap segment.

2) They have rated 2 funds as 5 star from large cap-midcap segment.

3) They have rated 2 funds as 5 star from midcap segment.

4) They have rated 3 funds as 5 star from the small cap segment.

5) They have rated 3 funds as 5 star from multicap segment.

6) They have rated 3 funds as 5 star from banking and infra sectors.

7) They have rated 1 fund as 5 star from value oriented funds.

8) They have rated 2 funds as 5 star from the tax saving segment.

Top Large Cap Mutual Funds – 5 Star by Value Research


Value Research Online has rated 4 large cap mutual funds as 5 Stars now at 2019. Let’s review them

Top#1 – Mirae Asset Large Cap Fund


This fund was erstwhile called as Mirae Asset India Equity Fund and became a large cap fund only 1.5 months back. This mutual fund invests in large cap stocks in India.

This mutual fund gave 20% annualized returns in the last 10 years, 16% annualized returns in the last 5 years, 15% annualized returns in the last 3 years. This fund has given 15% annualized return since inception.

This fund Beta is 0.93 that indicates that it is less volatile compared to the stock market movement.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH. VRO rates this as 5 Star fund in 2019 considering all these parameters.

Top#2 – Reliance Large Cap Fund


This was erstwhile called as the Reliance Top 200 Fund. This mutual fund invests in large cap stocks in India.

This mutual fund gave 15% annualized returns in the last 10 years, 14% annualized returns in the last 5 years, 15% annualized returns in the last 3 years. This fund has given 11% annualized return since inception.

VRO indicates this fund risk profile AS HIGH and returns grade as HIGH.

This fund Beta is 0.95 that indicates that it is less volatile compared to the stock market movement.

VRO rates this as 5 Star fund considering all these parameters. We have already categorized this as one of the Best Large Cap Mutual Funds to invest in India in 2019 in our earlier article.

Top#3 – Axis Blue Chip Fund


This mutual fund too invests in large-cap stocks in India.

This mutual fund gave 12% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. This fund has given 12% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as AVERAGE.

This fund Beta is 0.95 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters. I can say this is one of the Best Bluechip Mutual Funds for 2019.

Top#4 – ICICI Blue Chip Fund


This is one my favorite mutual fund, which I have been investing in the last 10 years. I have been recommending this to several of my friends too.

This mutual fund gave 16% annualized returns in the last 10 years, 12% annualized returns in the last 5 years, 13% annualized returns in the last 3 years. This fund has given 14% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as ABOVE AVERAGE.

This fund Beta is 0.82 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund taking these parameters into consideration. This is one of my favorite Large Cap Mutual Funds to invest now in India.

Best Largecap–Midcap Mutual Funds – 5 Star by Value Research


Value Research Online has rated 2 large cap-midcap mutual funds as 5 Stars now in 2019. Let’s review them.

Top#5 – Mirae Asset Emerging Blue-chip Fund


This is also one of my favorite mutual fund, which I have been investing in the past few years. I have been recommending this to several of my friends too.

This mutual fund gave 22% annualized returns in the last 5 years and 17% annualized returns in the last 3 years. This fund has given 20% annualized return since inception.

VRO indicates risk as Moderately high and returns grade as Below Average.

VRO rates it as 5 Star fund taking these parameters. This is one of my favorite Large Cap-Midcap Mutual Funds to invest in India.

Top#6 – Canara Robeco Emerging Equities Fund


This mutual fund too invests in large-cap and midcap stocks in India.

This mutual fund gave 24% annualized returns in the last 10 years, 22% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. This fund has given 17% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as also HIGH.

This fund Beta is 1.01 that indicates that it is HIGH volatile compared to the stock market movement.

VRO rates it as 5 Star fund with such aggressive performance. Its Beta is high due to midcap sector exposure. I can say this is one of the good Largecap-cum-midcap Mutual Funds to invest now in India.

Best Midcap Mutual Funds – 5 Star by Value Research


Value Research Online has rated 2 midcap mutual funds as 5 Star funds now at 2019. Let’s review them.

Top#7 – Kotak Emerging Equity Scheme


This mutual fund invests in mid-cap stocks in India. Midcap stocks have been taking beating in the last 2 years and are recovering now in the last 2-3 months.

This mutual fund gave 19% annualized returns in the last 10 years, 19% annualized returns in the last 5 years and 10% annualized returns in the last 3 years. This fund has given 11% annualized return since inception.

VRO indicates risk as Moderately high and returns grade as also HIGH.

This fund Beta is 0.85 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.

In my opinion, this fund was performing well earlier, however, it is under performer in the last 1-5 years time frame. This fund took high beating in terms of performance, especially due to midcap segment fall. There are other midcap mutual funds to invest in 2019, hence one can safely ignore such funds as of now.

Top#8 – L&T Midcap Fund


This mutual fund too invests in mid-cap stocks in India. Like I indicated above, Midcap stocks have been taking a beating in the last 2 years and are recovering now in the last 2-3 months now.

This mutual fund gave 20% annualized returns in the last 10 years, 19% annualized returns in the last 5 years and 13% annualized returns in the last 3 years. This fund has given 19% annualized return since inception.

This fund Beta is 0.87 that indicates that it is less volatile compared to the stock market movement.

VRO indicates this fund risk profile as HIGH and returns grade as HIGH. VRO rates it as 5 Star fund considering these points.

We have recommended this fund as part of our Top and Best Midcap Mutual Funds in 2019. One can invest such funds for medium to long term.

Best Small Cap Mutual Funds – 5 Star by Value Research


Value Research Online has rated 3 small cap mutual funds as 5 Stars now at 2019. Let’s review them.

Top#9 – SBI Small Cap Fund


This mutual fund invests in small-cap stocks in India. Like midcap, even small cap segments were down in the last 2-3 years and slowly picking up now.

This mutual fund gave 25% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. This fund has given 18% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.88 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the Best Small Cap Mutual Funds to invest in India in 2019. One can invest in medium to long term in such small cap funds. These are not for short term investments.  

Top#10 – L&T Emerging Businesses Fund


This mutual fund too invests in small-cap stocks in India.

This mutual fund gave 18% annualized returns in the last 5 years and 16% annualized returns in the last 3 years. This fund has given 18% annualized return since inception.

VRO indicates risk as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.82 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  While long term performance was good, however, for short term to medium term, this fund shown pathetic performance.  Currently, we are neutral on this small cap fund.

Top#11 – HDFC Small Cap Fund


This mutual fund too invests in small-cap stocks.

This mutual fund gave 19% annualized returns in the last 10 years, 16% annualized returns in the last 5 years and 16% annualized returns in the last 3 years.

This fund has given 18% annualized return since inception. VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.76 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the Good Small Cap Mutual Funds for 2019. High risk investors who want to invest for medium to long term of 5-10 years can invest in this fund.

Best Multicap Mutual Funds – 5 Star by Value Research


Value Research Online has rated 3 multicap mutual funds as 5 Stars now at 2019. Let’s review them.

Top#12 – Motilal Oswal Multicap 35 Fund


This mutual fund invests in large cap, midcap and small cap stocks.

This mutual fund gave 19% annualized returns in the last 5 years and 13% annualized returns in the last 3 years. This fund has given 20% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.97 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters. This is one of the Best Multicap Mutual Funds to invest in India in 2019.

Top#13 – Kotak Standard Multicap Fund


This mutual fund invests in large cap, midcap and small cap stocks. This mutual fund gave 16% annualized returns in the last 5 years and 14% annualized returns in the last 3 years.

This fund has given 14% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.94 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the Top Multicap Mutual Funds for 2019.

Top#14 – Aditya Birla Sun Life Equity Fund


This mutual fund invests in large cap, midcap and small cap stocks.

This mutual fund gave 16% annualized returns in the last 10 years, 15% annualized returns in the last 5 years and 13% annualized returns in the last 3 years. This fund has given 23% annualized return since inception. VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as HIGH.

This fund Beta is 0.95 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the good Multicap Mutual Funds for 2019 considering the amazing returns since inception.

Best Sector Mutual Funds – 5 Star by Value Research


Value Research Online has rated 3 sector mutual funds as 5 Star fund now in 2019. Let’s review them.

Top#15 – Franklin Build India Fund


This mutual fund invests in stocks that are from the infrastructure sector.

This mutual fund gave 19% annualized returns in the last 5 years and 13% annualized returns in the last 3 years. This fund has given 16% annualized return since inception.

VRO indicates this fund risk profile as HIGH and returns grade as HIGH.

This fund Beta is 0.71 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the best infrastructure Mutual Funds for 2019. However, one should keep an eye on such sector funds as these can turn into negative. These sector funds are for short term of 1 to 3 years only.

Top#16 – ICICI Prudential Banking and Financial Services Fund


This mutual fund invests in stocks that are forming part of banking and financial services sector.

This mutual fund gave 21% annualized returns in the last 10 years, 19%  annualized returns in the last 5 years and 21% annualized returns in the last 3 years.

This fund has given 19% annualized return since inception. VRO indicates this fund risk profile as HIGH and returns grade as HIGH.

This fund Beta is 1 that indicates that its performance could be inline compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters.  This is one of the Best Banking Sector Mutual Funds to invest in India. However, one should keep an eye on such sector funds as these can turn into negative. These sector funds are for short term of 1 to 3 years only.

Top#17 – L&T Infrastructure Fund


This mutual fund invests in stocks that benefits from the infrastructure sector.

This mutual fund gave 11% annualized returns in the last 10 years, 14% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. This fund has given 4% annualized return since inception.

VRO indicates risk as HIGH and returns grade as HIGH.

This fund Beta is 0.81 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters. This is a high risk sector Mutual Funds where one should keep an eye on such sector funds as these can turn into negative.

Best Value Oriented Mutual Funds – 5 Star by Value Research


Value Research Online has rated 1 value oriented mutual funds as 5 Star fund now in 2019. Let’s review them.

Top#18 – Invesco India Contra Fund


This mutual fund gave 18% annualized returns in the last 10 years, 16% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. This fund has given 14% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as ABOVE AVERAGE.

This fund Beta is 0.51 that indicates that it is less volatile compared to the stock market movement. VRO rates it as 5 Star fund considering these parameters. One of the Best Value Fund to invest in 2019.

Best ELSS Mutual Funds – 5 Star by Value Research


Value Research Online has rated 2 ELSS mutual funds as 5 Star fund now in 2019. Let’s review them.

Top#19 – Aditya Birla Sun Life Tax Relief 96


This is also tax saving ELSS mutual fund that has lock-in period of 3 years.

This mutual fund gave 17% annualized returns in the last 10 years, 16% annualized returns in the last 5 years and 11% annualized returns in the last 3 years.

This fund has given 24% annualized return since inception. VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as ABOVE AVERAGE.

This fund Beta is 0.89 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters. This is one of the Best ELSS Tax Saving Mutual Funds to invest in 2019-2020.

Top#20 – Axis Long Term Equity Fund


This is also tax saving ELSS mutual fund that has lock-in period of 3 years.

This mutual fund gave 16% annualized in the last 5 years and 12% annualized returns in the last 3 years. This fund has given 17% annualized return since inception.

VRO indicates this fund risk profile as MODERATELY HIGH and returns grade as ABOVE AVERAGE.

This fund Beta is 0.94 that indicates that it is less volatile compared to the stock market movement.

VRO rates it as 5 Star fund considering these parameters. This is one of the Top ELSS Tax Saving Mutual Funds for 2019.

Here is the summary of Top 20 Mutual Funds that are 5 Star Rated by Value Research


There are 2 funds JM Core 11 Fund and Quant Tax Plan which are rated as 5 Star by Value research, however it has low AUM of less than Rs 50 Crores, hence we have not considered as part of the analysis.

List of Top 20 Mutual Funds – 5 Star by Value Research in 2019-revised

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Suresh

Top 20 Mutual Funds – 5 Star by Value Research in 2019

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