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
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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.
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
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.,
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.
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.
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
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.
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.
Dr Santhosh Kumar
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.https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/
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.
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.
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?
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.