Best Mutual Funds to invest in 2013 Equity & Debt

by HEMANT BENI WAL on JANUARY 3, 2013

Well the newspapers and television are full of features recalling few things like Best of craziest Bollywood moments of 2012 or the Best of wardrobe malfunctions of 2012 or the Best of divorce/separation of 2012, I will not make an adventure to test your oomph level and will draw your focus on a serious affair i.e. investments. Each year I try to focus on what next in investment domain. Hence my first post of 2013 shall be on Best Mutual Funds to Invest in 2013 in India. I have covered top schemes of Equity as well as Debt funds so that you can think of building a proper portfolio. You can also download consolidate factsheet of equity funds from the end of post & also check technical ratios sheet of the selected funds. Before we leap same old age word of wisdom. Do not get carried away by simple past performance (Oh! If you consider past performance you will not consider investing in equity funds). Decision to invest should only be taken:

In congruence to your financial goals. As per your risk appetite. As per asset allocation process. In case you are nave, take help of a professional in professional way (read pay his due advisory fees)

Mutual Fund So here we go

Last year we did some similar exercise Best Mutual Funds to invest in 2012 in India [you should quickly go through this to understand how fund categories are defined] but last year there was single criteria that fund should be five star rated by value research. This year we have added few more filters.

Selection Criteria of Best Mutual Funds to invest in 2013 Equity

Value Research 4 or 5 star Rating Ratings can give you first level check to fund selection but you should understand that they are based on past data & cant predict future. Fund Size I have considered Rs 2000 Crore as minimum fund size for equity funds. Alpha (Jensen) is positive in 3 years This is a risk-adjusted measure used to gauge the extent to which a manager has added value to the returns that

could have been expected from a benchmark portfolio, while taking into account the funds sensitivity to that benchmark. So this is a test of whether a fund has achieved a better performance than its Beta would suggest: a positive Jensen Alpha indicates an active management style with superior stock-picking ability; a negative figure is produced if returns are falling short of the adjusted benchmark return. In simple words Jensens Alpha will tell you has your Mr Fund Manager contributed some returns. Fund Manager Tenure I have avoided funds if there is change of fund manager in last 1 year. Same applies to L&T Funds which were earlier managed by Fidelity Amc. Read What should investors do with Fidelity Funds?

Best Mutual Funds to invest in India Equity

I repeatedly keep saying that its not about fund selection which will generate returns its more about your behavior. Investing is not a Number Game its a Mind Game. I shared a post in May 2012 Its tomorrow that matters read comment section. You can clearly see people were in panic & what happened after that can be seen in First Graph.

Last year performance of Equity Funds Category Wise

10 years performance of Diversified Equity Funds

1 year rolling chart of Diversified Equity Funds

Best Mutual Funds to invest in 2013 Large Cap

Best Equity Large Cap Funds ICICI Prudential Focused Bluechip Equity Franklin Templeton Franklin India Bluechip DSP BlackRock Top 100 Equity Regular Category Average 1m 3m 6m 1yr 3yr 5yr 10yr 0.49 4.60 13.22 26.79 10.43 1.40 5.84 12.96 26.79 8.42 4.05 26.08 1.67 6.29 13.52 30.29 6.84 3.30 0.70 3.85 11.79 25.65 4.17 -0.34 18.41

Best Mutual Funds to invest in 2013 Large & Mid Cap

Best Equity Large & Mid Cap Funds UTI Opportunities HDFC Equity HDFC Top 200 Birla Sun Life Frontline Equity Category Average 1m 3m 0.37 3.18 2.42 1.95 1.68 4.62 6.09 5.57 7.75 5.39 6m 13.01 13.83 13.37 18.38 14.13 1yr 27.28 34.14 32.43 36.07 28.53 3yr 10.13 8.30 7.83 7.57 5.01 5yr 10yr 6.11 5.61 5.91 4.08 -0.37 29.11 29.37 25.40 19.98

Best Mutual Funds to invest in 2013 Multi Cap Funds

Best Equity Multi Cap Funds Reliance Regular Savings Equity DSP BlackRock Equity Sector Average 1m 3m 6m 1yr 3yr 5yr 10yr 1.77 8.16 23.26 46.01 6.93 2.40 2.07 6.98 16.16 33.26 6.65 3.06 29.56 2.23 6.49 15.68 31.61 5.55 -0.15 24.00

Best Mutual Funds to invest in 2013 MidCap & Small Cap

Best Equity Midcap Funds IDFC Premier Equity HDFC Mid Cap Opportunities Reliance Equity Opportunities ICICI Prudential Discovery Category Average 1m 3m 6m 1yr 3yr 5yr 10yr 2.12 9.32 20.25 40.02 14.89 7.51 2.93 4.87 15.73 39.62 14.65 7.27 2.42 7.01 19.01 47.35 14.63 6.77 3.42 7.92 17.87 46.01 12.45 8.65 2.53 7.81 18.52 38.87 7.18 -1.74 22.75

Discrete Performance of Diversified Equity Mutual Funds

This may help you in gazing consistency of these funds. Only one thing is consistent that equity will give inconsistent returns & thats the way equity works. If you expect equities to generate 15% every year in a straight line its your mistake. As someone rightly said Investments dont do mistakes investors do.

I have not covered Sector Funds here as I dont think there is much point in talking about the same if someone want to know why, he read this article Sector Fund guide. Also download equity fund factsheet from end of the post.

Best Mutual Funds to invest in 2013 Balanced Funds

Filtering Criteria of Balanced fund are similar to diversified equity funds only change is I have considered funds with asset size above Rs 500 Crore. You can also read this article Balanced Mutual Funds best of both worlds.
Best Balanced Funds HDFC Balanced HDFC Prudence Reliance Regular Savings Balanced Birla Sun Life 95 Category Average 1m 3m 6m 1yr 3yr 5yr 10yr 2.20 2.46 9.80 26.56 12.41 9.21 19.43 3.83 5.06 12.73 30.08 11.42 8.00 25.90 2.11 4.69 14.60 35.12 10.03 8.35 2.55 5.50 14.40 25.63 8.99 5.31 21.87 1.80 4.53 12.13 25.88 7.05 3.06 16.47

Best Mutual Funds to invest in 2013 Debt Funds

Rational behind selection of these funds is just five star rating from value research & Asset under Management of Rs 100 Crores. To understand Debt Funds read Bond & Debt Fund Guide.
Best Mutual Funds Income Birla Sun Life Medium Term Franklin Templeton India Income Builder Plan A Religare Active Income Plan A Best Mutual Funds Short Term JP Morgan India Short Term Income Best Mutual Funds Ultra Short Term Franklin Templeton Templeton India Low Duration JM Money Manager Regular JM Money Manager Super L&T Floating Rate Peerless Short Term Taurus Short Term Income Best Mutual Funds Gilt Short Term SBI Magnum Gilt Short Term Best Mutual Funds Gilt Medium & Long Term Kotak Gilt Investment Regular Best Mutual Funds Hybrid Debt (MIP) Birla Sun Life MIP II Savings 5 HDFC Multiple Yield Plan 2005 Reliance MIP 1m 0.76 1.19 1.06 1m 0.85 1m 0.63 0.78 0.77 0.73 0.70 0.84 1m 0.86 1m 1.64 1m 1.29 1.29 1.49 3m 2.22 2.62 2.23 3m 2.37 3m 1.97 2.25 2.25 3.06 2.22 2.45 3m 2.19 3m 2.62 3m 2.48 2.35 3.38 6m 5.31 6.46 5.28 6m 4.88 6m 4.16 4.76 4.75 5.52 4.90 5.09 6m 4.42 6m 5.03 6m 6.18 5.74 7.66 1yr 11.15 12.28 10.46 1yr 9.67 1yr 8.93 10.25 10.22 10.67 10.45 10.55 1yr 9.19 1yr 14.63 1yr 11.72 11.84 17.21 3yr 8.78 8.89 8.57 3yr 3yr 7.29 8.64 8.77 8.36 8.46 3yr 7.50 3yr 8.79 3yr 8.24 9.20 8.31 5yr 10yr 7.66 6.11 5.73 5yr 10yr 5yr 10yr 6.61 5.45 7.90 8.52 7.24 6.34 5yr 7.08 5yr 9.53 5yr 10.60 9.14 11.01 5.30 10yr 6.32 10yr 7.44 10yr

Links: You can download consolidated factsheet of equity funds from here & can also check technical ratios in these sheets. You should also read Secret of achieving high returns Personal Disclaimer I am not suggesting you any of these funds you should consider Best Mutual Funds to invest in 2013 in India as a random list of funds.

Disclaimer: Mutual Fund Investments are subject to market risks. Please read the Scheme Information Documents and Statement of Additional Information (SID & SAI) carefully before investing.
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