Top Mutual Funds of 2014

Finding the best equity fund to invest in like finding needle in a haystack“, remarked my colleague. Which are the top or the best mutual funds as on Jan 2014.  Sadly there is no one answer. It’s like finding which bollywood actor is Number 1? if you check latest Time Celebx  (nov 2013)Hritik Roshan beat the Khans and Kapoor to be number 1. But a month earlier he was at number 4. While Salman khan has been at number 2 or 3.   What I mean to say is that it is difficult for someone to be consistently be at the top. There are also flavors or the seasons or fads. For investing in mutual funds, we need a mutual fund which is from a good fund house, has good fund manager,good performance both short term and long terms, have seen the various market cycles and is consistent.

Questions , Questions before the investor

It’s not easy choosing a equity mutual fund because of choices, lot of noise,information overload  surrounding the mutual fund industry.

  • Time frame of investment : How long is your investment for? 3 years, 5 years, 
  • Frequency of investment : How often will you be investing,  lump sum or through Systematic investment plan say monthly ? 
  • The category : What category of fund do we want to invest in ? Large Cap, Mid cap, Small Cap, Diversified or Balanced, Sector funds
  • Performance, ratings : Which fund has performed well, what are the ratings.
  • Other factors : What is fund size, who is fund manager etc.

We went through various websites to find good mutual funds to invest in, such as Top mutual funds from Mint Mutual Fund Schemes to invest in, MoneyControl’s Mutual Fund schemes to invest in  , ET Top 100, Valueresearch India’s finest funds for hit portfolio, Morningstar Best Performing funds . Most of these top funds (such as Mint 50, ET 100) choose from Valueresearchonline’s top rated funds. There was no common fund which we could zero down to.  Given below are Large cap and Large Cap and Mid Cap Funds. Reason for comping up with the list was to start a discussion on which funds can one invest. We have given links to funds on Valueresearchonline for our readers to investigate these funds further.

Large-cap Mutual Funds

Large cap funds invest in some of the biggest companies, which are well represented in the more frequently tracked indices such as the Sensex and the Nifty, are less volatile to market swings compared to other diversified equity funds. These funds mirror the performance of the economy and are geared to handle market cycles better. But they do not deliver exceptional returns in a rising market. The performance of actively managed funds comes out  far superior than passively-managed funds. The 5-year trailing returns indicate that over 50 per cent of the actively-managed funds have delivered superior returns than Nifty. The gap in the two widens when one looks at long-term performance. For instance, over a 10-year period, from the universe of 32 funds, the average of the actively-managed funds posted 22.58 per cent returns compared to the average return of 17.94 per cent delivered by passive funds for the same period. Some of  funds which have made it to Top Mutual funds list of various websites are :

Franklin India Bluechip  : Consistent performer over the past 16 years with a CAGR of 21% against 12% of its benchmark – S&P BSE Sensex which makes it a perennial favourite. It is primarily a large-cap fund which focuses on investing in companies with strong financials, quality management and market leadership. Irrespective of market conditions, it has stuck to its mandate of investing in large-cap companies. . Follows time-tested strategy of value and growth stock picking. Managers are Anand Radhakrishnan (6.8 years), Anand Vasudevan (2.9 years)

ICICI Pru Focused Bluechip  : It is a large-cap diversified equity fund with a concentrated portfolio of 20-25 large caps picked from top 100 stocks by market capitalisation on NSE. The fund manager follows a growth style of investing. It has a good mix of concentration and diversification as it uses a combination of bottom-up and top-down investment approach. It is known to take an aggressive position in high conviction stocks, which has helped in outperformance. Quality of companies has ensured steady performance of the fund. Follows its benchmark weightages. In five years, the fund has given 23% against its benchmark CNX Nifty returns of 16%. Manager is Manish Gunwani (2.0 years)

UTI Equity  :  This fund has a chequered past, but has done very well in recently.  The fund has beaten its benchmark S&P BSE 100 every two-year in the past seven years. It has diversified portfolio and the fund has been known for its first-rate stock selection in the last seven years. Manager is Anoop Bhaskar (6.7 years)

BNP Paribas Equity : The fund struggled in 2008 and 2009. Since then, it has been impressively following a well-articulated strategy to focus on companies with superior earning growth. To this end it chooses companies with pricing power for their competitive advantage or entry barriers. This has translated into a diverse portfolio of quality large caps and few quality mid-caps. This has led to a resilient portfolio during market downturns which also does well in a rising market. Manager is Shreyash Devalker since last 2.3 years.

Returns (%)

Name of fund



Ratio (%)

1-Month 3-month





Net Assets


BNP Paribas Equity

4 star





6.24  16.56


Franklin India Bluechip

4 star





 2.95  19.48 15.74


ICICI Pru Focused Bluechip Equity Reg

5 star





 6.24  23.01



UTI Equity

4 star





 5.59  20.68 15.10


CNX Nifty




1.46 16.50 12.07

Large-and-midcap Mutual Funds

Funds in this category have a large cap bias along with a limited exposure to mid and small cap stocks. While large cap allocation of these funds provides downside protection to the portfolio, exposure to mid and small cap stocks gives it an extra edge to generate superior returns.
Birla Sun Life Frontline Equity : Stock-picking at discounted rates. In the past five years. it has given 21% as against its 17% returns of benchmark S&P BSE200 in the same period. Has given reasonably good performance even in downturns. The fund is largely tilted in favour of large-cap stocks, with a small exposure to mid-caps. The fund targets the same sectoral weights as BSE 200 hence performance deviation against the benchmark is comparatively lower and has a diversified portfolio
Franklin India Prima Plus : Prefers companies with high corporate governance standards. Has consistently performed better than its benchmark. Focus on companies with proven records and earnings growth potential.
ICICI Prudential Dynamic :  This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.t has the flexibility to take cash calls. This helps safeguards the capital from erosion during downturns
Quantum Long Term Equity The fund invests in BSE 200 companies. The buy and hold approach is followed in its truest sense as stocks such as Infosys, Tata Steel, ING Vysya, ONGC and TCS have been there in the portfolio since the fund’s launch, its turnover ratio is one of the lowest . It has a high exit load for redemptions itlevies exit load till first 2 years of the investment,  up to 4% if redeemed before 6 months 3% for redemption between 181 – 365 days, 2% for redemption between 366 – 540 days 1% for redemption between 541 – 730 days. Not just that, ta marked departure compared to other funds which don’t have any exit load after the first year of investment. Note, it is the only fund in the country which is sold directly.
Performance of the suggested funds along with some other funds which we found coming up in top 10 list are given below.
Returns (%)
Fund Rating Expense Ratio 1-month 3-month 1 Year 3 year 5 year 10 year Net Assets
Birla SL Frontline Equity 4 Star 2.48 -0.93 4.89 5.26  5.97  20.97 18.05 3,586
Canara Robeco Equity Diversified Reg 4 Star 2.73 -0.70 3.73 1.45  5.70  22.19 16.36  634
Franklin India Prima Plus 4 star 2.28 -0.52 6.88 1.75  5.95 19.25 17.53 1,949
HDFC Equity 3 Star 2.18 -1.38 9.91 -1.14  1.58  22.19 18.28 10,249
ICICI Pru Dynamic Reg 5 Star 2.24 0.44 8.96 11.78  7.41  21.57 19.09 3,573
Mirae Asset India Opportunities Regular 5 Star 2.69 0.53 8.92 6.57  7.16  25.27 309
Quantum Long Term Equity 5 Star 1.25 -2.85 4.89 3.70  5.43  23.67 201
UTI Opportunities 5 Star 2.18 -0.64 3.62 4.32  7.11  22.53 3,565

Stock Market, Economy, Sector

The equity mutual funds performance is tied to performance of stock market which is tied to that of economy. Even within the stock market there are some sectors which do well and some which don’t. Let’s take an overview on what may effect the Economy and the sectors .
 2014 will be a volatile year with plenty of uncertainty and unfolding of events and will suffer from what is called as VUCA which stands for volatility, uncertainty,complexity and ambiguity.
  • On the domestic front, factors such as high inflation, depreciating rupee , government policies and general elections will effect.  Nation wants a stable government that will make decisive moves on reforms and execution of economic polices.
  • Gradual withdrawal of the economic stimulus by the US Federal reserve which got kicked off on Dec 19. While India and e merging markets are better prepared to deal with it than in July-Aug of 2013 when currencies plummeted and stock and bond markets suffer it could impact everything from the inflow of foreign funds into India, the value of rupee , international commoidity prices etc.
Sectoral Outlook
In the equity performance of  Mutual funds that you would invest in would depend on which sectors, companies the fund invests in. One of the major reason for HTDF Too 200 not doing well is having a large exposure to Banks which have not performed well. DSP BlackRock Equity Funds: Down, but not Out explains why these funds failed to impress last year due to the wrong positioning of their portfolio and the illiquidity of the market compared to the size of their portfolio.  Socheck the portfolio of the mutual fund scheme to see which sectors it is betting on. The overview of various sectors is given below. Interested readers can read
Good :
  • Information Technology (IT) : The performance of IT services companies is likely to improve in 2014-15 , with nearly all Tier-1 players delivering around 15% growth. Growth maybe be broad-based, with contribution from all geographies, verticals and service lines. It may benefit from weak rupee and stable pricing.
  • Pharma : The sector has shown consistent double-digit growth in the recent past. However, the US Food and Drug Administration’s demanding guidelines have hit overseas sales. Also, the government’s new pricing policy has impacted margins.  With rapid rate of R& D , weak rupee pharma should do well.
  • Capital Goods : Performance of the capital goods sector depends on the GDP growth rate. A tight fiscal condition implies little from support from government. For capital goods to gain domestic economy has to improve.
  • Real Estate : Real estate companies are facing the brunt of high interest rates, tight liquidity, large debts and lending curbs.The fundamentals of the sector may not change any time before the middle of 2014 (elections)
  • Oil & Gas : Uncertainitty remains on subsidy sharing or payment. And government’s ability to increase diesel prices.The gradual easing of tensions between US and Iran may lead to normalisation of flow of crude oil from the west Asian country. Improvement in supplies from Lybia and Iraq may also ease pressure on global oil prices.
  • Metals : the global economic sentiment has improved, as manufacturing picks up. Stability in steel prices globally is a big positive
  • FMCG :  Stocks of most consumer staples companies have fallen in last three months. The trend is expected to continue as earnings growth slows due to (a) rise in competition and weak economic environment; (b) unlikely margin expansion from the current high base (c) high advertising and promotion spends to fight competition amid limited scope for increasing price
  • Auto mobiles : It has suffered slowdown in the last two years. Interest rate and commodity prices will remain a concern.Competition has increased across the spectrum.
  • Banks : Macroeconomic stress is likely to keep asset quality of both public and private sector banks under pressure. Interest rates on three-five year term deposits likely to remain firm due to high inflation. Private sector banks are better placed than public sector banks to absorb the rising credit costs due to their high margins and low costs.
  • Telecom : Companies have discontinued the services of inactive and low-value subscribers and shifted focus to active and revenue-generating subscribers. Competition has eased, leading to increase in tariffs. The number of data services subscribers has been growing. Reforms, especially the clarity on M&As rules, will lead to consolidation and, thus, an increase in revenue for the bigger companies

Related Articles:

As mentioned earlier Reason for comping up with the list was to start a discussion on which funds can one invest. We have given links to funds on Valueresearchonline for our readers to investigate these funds further. We plan to have discussion on funds in the list,why it makes sense, why it doesn’t. We shall be reviewing this list every quarter. We reiterate these are suggestions only, investing in equity mutual funds is risky, please consult your financial adviser or whomever you consult before investing in these suggestions. We shall not be liable for any losses based on our suggestion. According to the Chinese Calendar 2014 is the year of horse which stands for speedy progress and travel. Will it gallop, will it canter, only time will tell.

34 Responses to Top Mutual Funds of 2014

  1. Anuj Sharma says:

    Hi All, I am 30 yrs old first time investor in MF’s, as far as my porfpolio is concern I have invested in fixed deposits, PPF and also monthly deduction for EPF, Term and health insurance cover for myself, this way I am planning to secure my future with secure investments and insurance. Now as I said before I am planning to invest in MF and identified following funds to invest but not sure weather to go for lumpsum or SIP’s??

    I personally belive not to clutter with many funds so planning to invest only in 5 MF’s, 2 large cap funds (just to avoid stock market volatality), 2 Mid cap funds (for rapid growth) and 1 balanced fund.

    Large Cap Funds

    ICICI prudential focused Bluechip Equity (G)
    Quantum Long Term Equity (G)

    Mid cap funds
    Reliance Equity Opportunitis Fund (G)
    IDFC Premier Equity Regular (G)

    Balanced Funds equity
    HDFC balance fund (G)

    Please suggest me if I am going right, addtionally I am thinking of further investing on sectoral funds and my choices would be following.

    Reliance Pharma
    ICICI prudential Technology Reg

    Other option here I have SBI Pharma/Franklin Infotech fund but not sure of them, may be in future fancy my chances.

    Please suggest if my overall thought process is correct or not ??

    • Kirti says:

      Anuj thanks for asking us.
      I was impressed that at 30 year old you have invested in fixed deposits, PPF and also monthly deduction for EPF, Term and health insurance cover for myself.
      Investing in MF is a good option to explore. I would like you to think about
      -Currently market is making new highs every other day and it may continue till Elections. Please understand the macro conditions before investing – will India continue to do well after elections or will FII stop investing or withdraw money
      -Tie your mutual fund investments to goals. How much do you want to invest and for how long. Focus on starting in one or more fund. What is market tanks would you continue your SIPs.
      The funds that you have selected are 4 star and 5 star rated funds. So Good choice. Did you just check out just the returns but tried to understand their portfolio. What was the basis for selection of these funds.
      Please don’t go for diversification just for name of it.
      Sector funds
      Technology is not doing good for last three months hence the Tech funds are suffering. Sector funds are risky do understand it before going.
      I suggest making a investing diary where you write your thoughts, reasons for selecting, when will you withdraw etc.


    WoW. What a blog and what a discussion. I really loved reading it more because somehow i feel my chance or by logic, i am thinking the same way as Mr Sunil goes.
    32 year old NRI and first time investor with rookie mindset. Learning from the blogs you indicated above including this one.
    FIBCF, QLTE, IDFC Premier Equity & HDFC Balanced are my choices/bets for my future goals which are 15 years away min.

    Being NRI, tax saver funds do not come under my radar.

    Debt is what i need to start with as all surplus is parked in NRE Bank FD’s. Any advise ?

    PPFAS is good on paper as of now and am amazed with his conviction. I am thinking of going for it near future.

    • Kirti says:

      Thanks Vinay for WOW comment. It made my day :-)
      Great people do think alike or fools seldom differ :-)
      NRI investing in Indian Mutual funds . Please go through the Business Today article For the Homesick Investors It is of 2011 so I don’t know if rules have changed.
      You can also check HDFC Mutual Fund information for NRI
      Also I must point out that NRI withdrawals are subject to tax deducted at source (TDS). If you withdraw from your MF within a year, you have to pay a TDS at the rate of 30% if it’s a debt fund or a gold fund and 15% for equity-oriented schemes.
      This could be an interest article. We can collaborate if interested!
      Regarding PPFAS I agree with you..

      • VINAY MAITHANI says:

        Thank you for link to NRI based articles. But they are mostly related to US based NRI’s. Since I am in the middle-east where there are no taxes hence the situation is different.
        If an NRI can get Tax Residency certificate from the country he/she is staying abroad then producing this to AO, he can claim a reduced Tax Liability certificate which can be produced in Banks for lower TDS. But it is at the discretion of the AO to provide such certificate and is not binding.
        As far as i know, for MF the taxes would be the same irrespective of income earned by NRI in INDIA.

  3. Sunil says:


    Yes you hit the nail… no need of tax saving avenues in the form of MF’s. But, they happened to be a part of only 2013-2014 portfolio due to some reasons.

    PPFAS yes, iam simply giving it a try… lets see.
    Nice that you found my replies helpful.


  4. Samir says:


    I have identified following funds for my investment where in i would be starting a SIP. Let me know if i have done the right selection. I want to have exposure to all sectors.

    ICICI Prudential Focused BlueChip Equity Large Cap
    Quantum Long Term Equity Fund Large & Mid Cap
    ICICI Prudential Discovery Fund Mid & Small Cap
    PPFAS Long Term Value Fund Value & Unique
    HDFC Children Gift Fund – Investment Balanced
    HDFC Short Term Opportunities Fund Short Term Debt
    ICICI Prudential Technology Fund IT
    Reliance Pharma Fund Pharma
    Reliance Banking Fund Banking
    JPMorgan Greater China Equity Off-shore Fund China
    JPMorgan US Value Equity Off-shore Fund USA
    JPMorgan Europe Dynamic Equity Offshore Fund Europe

    • Sunil says:


      Can you track all these funds?
      Theritically, you have diversified across sectors, stocks countries…
      But, what about your redemptio targets?
      Are you going to redeem them on time based, return based or what strategy?

      How are you going to tackle sector cycles?
      Are you completely aware of when to come out of Sector MF’s?

      I admire you … if you have got all that knowledge.


      • Kirti says:

        Agree with you Sunil..
        Half knowledge is worse than no knowledge (story of monkey,sword and king’s nose we read as child)
        With technology investing in MF is now just a click away but knowing where and what to invest in difficult.
        Reminds me of the story I had read

        Nikola Tesla visited Henry Ford at his factory, which was having some kind of difficulty. Ford asked Tesla if he could help identify the
        problem area. Tesla walked up to a wall of boilerplate and made a small X in chalk on one of the plates. Ford was thrilled, and told him
        to send an invoice.
        The bill arrived, for $10,000. Ford asked for a breakdown. Tesla sent another invoice, indicating a $1 charge for marking the wall with an
        X, and $9,999 for knowing where to put it.

    • Kirti says:

      Thanks for asking but Sorry can’t help you much with just this information.
      Let me try ..
      Have you got the Big picture in place? Why are you investing in Mutual Funds? How much percentage of your portfolio will you put in Mutual Fund and why? Have you made some fixed income investments like EPF,PPF.
      After deciding how much you would put in Mutual Funds – you understand for each of these funds what is the purpose, what you expect? how long will you invest, what can go wrong, what will you do if it goes wrong?
      How will you invest (direct, online, agent)? How will you track?
      Then you can look at the funds – equity large cap are for growing wealth
      Pharma funds are good defensive funds (and pharma is expected to do well)
      IT funds as IT is expected to do well can have a small percentage of your funds.
      Why banking fund? Banks esp. PSU are having tough time due to NPA.
      International funds – why China or Europe? Why not only US

      See MFS are like buffet in a marriage reception party, we would like to taste every dish and can get our plates full but our stomach has a capacity to eat. Overeating may lead to indigestion etc. So pick and choose what you like best and enjoy.
      Similarly for Mutual Funds understand and then invest.

  5. WOW just what I was looking for. Came here by searching for top mutual funds

  6. Swaminathan R says:

    In a marathon, the ones who are leading in the beginning rarely win the race at the end. The one’s who win have stamina and surge forward towards thee end while the others who were leading initially fall behind. The picking of the mutual fund is very similar to this situation as we are selecting a fund based on this year’s performance and hoping that it is going to give maximum returns after 10 years! So firstly, I choose fund houses which I think will still be around after 10 years. Then I pick one or two funds from these fund houses which have been around for at least five years and have a decent performance track record of beating the benchmark in a majority of the years ( not necessarily all the years) that they have been around. Also, the fund manager should have been unchanged for at least 3 or 4 years. I avoid going into alpha, beta , sharpe ratio from the long term perspective these numbers can lead to misleading & erroneous conclusions.

    • Kapil Tiwari says:

      Dear Swaminathan-ji, well said! I would be thankful if you could give a couple of examples of mutual fund schemes which you have selected based on your criteria of selection. Thanks.

  7. Kapil Tiwari says:

    Dear Kirti, for some reason, these 3 schemes are making me really uncomfortable and I say so without going into the intricate analyses of these schemes. These are: HDFC Top 200, DSP BR Top 100, HDFC Equity Fund. No, I do not wish to pull out my funds out of these schemes. I would consider not renewing my SIPs in these schemes.

    Here is what I would like to start/continue my SIPs in:
    a) Large Cap: 60% : ICICI Prudential Bluechip, Franklin India Blue Chip,
    UTI Equity (or similar)
    b) Large & Mid-cap: 20% : QLTE Long Term
    c) Mid & Small-cap: 20% : ICICI Pru Discovery

    Dear Kirti, what do you think of this proposed portfolio? I’m reiterating that I wish to continue to stay invested in HDFC Top 200, HDFC Equity & DSP BR Top 100 BUT I’m considering discontinuing SIPs in them in the next 2-3 months are so. What’s your take? Thanks.

    • Kirti says:

      Kapil please make sure that number of funds are limited it should be diversification and not diworsification.
      So between ICICI Prudential Bluechip, Franklin India Blue Chip, UTI Equity (or similar) choose one or two funds only.
      Before investing please decide for each category how long you are planning to hold your investment. Either it can be for short term (maybe till elections) or for atleast 3-5 years.
      And are you investing in debt like PPF or Fixed Deposits or Short term funds also?
      For equity funds I am investing my money which I don’t need for 5 years. And I invest in PPF and short term funds, Gold ETF and some bluechip stocks also.
      Subramoney suggests writing a diary for your investment decisions which I am starting to do this year.

      • Kapil Tiwari says:

        Kirti, one must max investment in PPF, which I do. Some people also have the opportunity to invest in EPF. Now I invest 1 lakh per annum in PPF and 6,500 per month in EPF. These two investments take care of the debt portion, I believe.

        Now, for the equity portion, I don’t understand the stock market. Hence, I have to invest through equity mutual funds. Personally, (repeat: personally), I would invest 60-80% in large cap and large+mid cap and 20% in mid+small cap. For mid+small cap, I chose ICICI Pru Discovery. For large+mid cap, I wish to replace HDFC Equity with QLTE. In large cap, I would choose only Franklin India Blue Chip. But after the HDFC Top 200 star downgrade/fiasco/scare, I would rather diversify into atleast two fund houses. Hence, I added ICICI Pru Blue Chip/ UTI Equity. It is “diworsification” to an extent, agreed. But I would rather play safe henceforth. I’m just thinking aloud.

        • Kapil Tiwari says:

          Dear Kirti, lest you forget…a couple of years back, the “experts” advised against “diworsification” and HDFC Equity Fund/ HDFC Top 200 were topmost in our minds! Imagine the investor in HDFC Equity/HDFC Top 200 who refused to diversify! Imagine, if he had allocated 50% to HDFC Equity/ HDFC Top 200 and 50% to Franklin India Blue Chip. After learning about HDFC schemes, all he would have done is to migrate to Franklin India Blue Chip. Again, I’m just thinking aloud….

          • Kapil Tiwari says:

            Kirti, the idea is not only to diversify across stocks but also across fund managers and fund houses! Think about it..:)

          • Kirti says:

            Kapil you have rightly said what other experts are saying – diversify among fund houses and fund manager.
            If one is starting with a clean slate then it one should diversify into two funds houses for each of the category.
            But if one has been investing for sometime then people end up having many funds. I did SIP in HDFC Top 200 and HDFC Equity for 2 years. Now they are not performing well.
            I stop my SIP in them and start SIP in QLTE and ICICI Pru Blue chip. So now I have 4 funds and two for large and mid cap and mid cap making it total of 6 funds. If after sometime I stop SIP in QLTE and say start in Franklin Blue chip I will end up with 7 funds.
            All I want to say is after a period of time your total number of funds should not explode.

          • Kirti says:

            Thanks for thinking aloud. Infact my posts are all about thinking aloud. i am a software engineer with no financial background and trying to earn money and learn how to invest it.(at times finding it easier to earn then to invest :-))

        • Kirti says:

          Great to know that you also believe in investing in PPF and that too max amount.
          How much should be in equity and debt depends on your risk profile and age . I am conservative and 40 years of age so I prefer to invest more in debt than in equity.
          I have invested in stocks and still own stocks ( In 2006-07 when everyone was investing in stocks I did) but because of lack of information and time play safe by investing in equity funds!

    • Kirti says:

      HDFC Top 200 did well but not HDFC equity. I have stopped my SIP. (Shall update the article ) and trying to decide between ICICI pru or Quantum
      Coming to DSP Blackrock Top 100
      The equity funds from the DSP BlackRock stable have had a rough 2013. Morningstar had an interview of their fund manager Aproova Shah
      DSP BlackRock Equity Funds: Down, but not Out where he says
      two aspects worked against us in 2013: The wrong positioning of our portfolio and the illiquidity of the market compared to the size of our portfolio.
      Going ahead, we believe that we are near to recovery and our portfolios are positioned accordingly.

      Right now in rising market most funds will rise so I shall go with the flow and bid the time. But shall try to understand the portfolio of DSP Blackrock Top 100 it has Infosys, banks like ICICI and Axis but also Maruti, Reliance and L&T. So it is delicately balanced. may not give too performance but would beat the category is what I feel. My take :
      Would you invest in this fund right now : Ans is no.
      Would i stop SIP : Maybe ..may see performance for a month or so.
      Would I withdraw funds from it : may book profit partially (esp if invested for more than an year)
      What do you say?

  8. Sunil says:

    Dear Be Money Aware,

    I was expecting a Mid-Small Cap fund from this article. This would have allowed a person to set up a portfolio with Core and Satellite approach.

    However, i have few in my mind, but wanted to hear from Horse’s mouth.

    A Nice article.

    Franklin India Blue Chip and QLTE are the 2 best known funds….


    • Kirti says:

      Mid and small cap funds are those which have at least 60 per cent of assets in mid cap companies over the last 3 years. The mid and small cap funds are capable of offering above-average returns when the markets are rising but are more prone to volatility as mid and small cap companies are hit harder when markets tank. So we have not discussed them here.
      But some of the funds that are being recommended are
      IDFC Premier Equity, BNP Paribas Midcap, Reliance Equity Opportunities
      BNP Paribas Midcap, Franklin India High Growth Companies, HDFC Mid-Cap Opportunities, ICICI Prudential Discovery,IDFC Premier Equity, Reliance Equity Opportunities
      What are your suggestions?

    • Kirti says:

      Sunil why do you consider Franklin India Blue Chip and QLTE as two best large cap equity funds? Would you share the reason.

      • Kapil Tiwari says:

        QLTE is not large cap but large & mid-cap, I believe. Hence, it should not be compared to Franklin India Blue Chip….

      • Sunil says:

        Dear Kirti,

        Sorry for the Late reply.

        I am not comparing the 2 funds, but would suggest a Pure Large Cap Fund – Franklin India Blue Chip and Large-Mid Cap.

        I personally am a big fan of Quantum Fund House, no unnecessary Funds (they keep simple, 1 Large Cap, 1 tax Saver, 1 Gold…).
        They are intended for customers who are looking at wealth creation by staying invested and PUT, rather than people who ride markets… (By their exit loads).
        They were the only MF Fund House in india with such a low expense ratio (1.25).
        In long run the expense ratio on a portfolio does play a key role (I have seen Free Financial Calculators on this part).

        However, why i think these 2(FIBCF & QLTE) should be a part of one’s core portfolio….

        1.Sound Fund House principles of Frnaklin and Quantum
        2.Both the funds complement each other very nicely (in terms of diversification).
        3.Least overlapping of Stocks (Healthcare which is completely missed from QLTE can be compensated from FIBCF)..
        4. Consistent performance of these funds (Beting their benchmark index and even many of their peers).

        I feel these 2 can be a part of one’s core portfolio…. with a kicker fund (Mid-Small Cap) acting as a satellite Fund.

        My portfolio for my son’s education consists of

        1. FIBCF – 30% (Core Equity)
        2. HDFC Mid-Cap – 35% (Core – Equity)
        3. PPFAS – 5%. (Satellite)
        4. PPF – 30% (Core – Debt)

        Kindly Note : Since i have Quantum Tax saver under my REtirement portfolio, i haven’t included QLTE in my son’s portfolio…. else i would have had QLTE as well for sure.


        • Kirti says:

          Sunil It is better late than never and 2014 has just started.
          You logic also seems good. As you rightly pointed out fund houses are great, their performance is consistent.
          Why did you suggest HDFC Mid Cap? and rational for PPFAS fund?
          These are funds only for your son’t education? What are the funds say for your retirement?
          BTW when will you be needing funds for you son education?(How old is your son)

          • Sunil says:

            Hi Kirti,

            Nice autopsy of my reply… Like it…

            HDFC Mid Cap – Here, i had 2 choices, IDFC Premier (Time Tested and everyone’s FAV). However, rationale behind picking HDFC is the allocation to Financial, Technology and Healthcare sectors…
            Let Infra live in peace, people cannot live without these 3 sectors… and the allocation levels are pretty much decent in HDFC Mid cap compared to IDFC…

            This will be my first fund in HDFC Fund House… So, a review of this is required atleast every 2-3 years.

            PPFAS – Did you have a look at the portfolio? – wonderful undervalued stocks… I admit many of them are never heard of companies, but wait, have you identified INFY in 1980’s as a market leader….
            Unknown companies with sound foundations (I presume Parag Pathak’s reputation and skills will be dwindled in this fund, atleast his voice will be heard in the fund picking.). I am a big fan of his investment style and can never be able to have my Portfolio being maintained by him. So it’s a little risk (Hence it is in Satellite mode).

            Yes, these are only for my son’s education (along with 30% allocation to PPF).

            My Son is now 1 year old and i need the funds for his higher education after +2 – I have atleast 17 years from now for the investments to grow. (Out of which i will be keeping money in the Funds for 12-13 Years and then on will be moving the corpus to Debt portfolio)

            Retirement –

            I uses Tax saving Funds till now – Quantum Tax Saver, Franklin India Tax sheild and Reliance Tax Saver, i might continue these 3 for the equity component.

            For Debt, i use my EPF and part of PPF.

            Retirement Portfolio –

            35% – EPF and PPF – Core (Debt)
            10% – Reliance Tax Saver – Satellite Fund (Equity)
            55% – Quantum Tax Saver, Franklin India Tax sheild – Core (Equity)

            I hope i am on track.
            Any suggestions are most welcome.

            Not to mention i have learned a lot from your blogs (Jago Investor, Be money Aware, Subra Money, TFL Guide, One Mint… just to name a few)


          • Kirti says:

            Sunil thanks for sharing . I am impressed by your disclosures and your honesty. You really are following the text book approach of allocating funds for every goal. I have to learn from you if that works out. I also have so many things to learn from you. So Again a BIG THANK YOU.
            I have not seen PPFAS fund (I feel it’s safer to invest in Funds with more corpus like ICICIPru/HDFC funds/Franklin Templeton Funds) . I like Parag Parikh philosophy a lot but will it work. Well let’s see.
            I wanted to understand your rational in investing in Tax saver funds? Why not invest in pure equity funds? I assume your EPF and PPF (and your home loan) would take care of your 80C requirements.

            Sunil the blogs you mentioned are the blogs I also follow (and get inspired). I recently had the opportunity of meeting Manish Chahuan and Nandish Desai of Jagoinvestor and it was so great talking to them. Subra’s take on things is so interesting. I begin my day by reading his posts. I would like to suggest of Suresh. Short,to the point and Crisp.
            And readers like you are also a great source of learning.
            Looking forward to more interactions

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