Tag - indian mutual funds

January 2013

Top Equity Mutual Fund Performance based on 3 years returns

Equity Mutual Funds Performance, ELSS, Large Cap, Mid Cap, Small Cap, Index Mutual Funds, Best Mutual Funds

Here are the Top Mutual Fund Performers based on 3 years returns in the Equity Segment. The Equity asset class has outperformed every other class in the year 2012.

                                             Equity Large Cap

Scheme Inception Date Return 1 yr % Return 3 yr %
ICICI Pru Focused Equity Retail May 07 2008 22.08 11.73
Franklin India Bluechip Nov 30 1993 19.25 9.45
BNP Paribas Equity Sep 03 2004 24.04 9.16

Equity Multi Cap

Scheme Inception Date Return 1 yr % Return 3 yr %
ING Dividend Yield Oct 06 2005 18.09 11.71
BNP Paribas Dividend Yield Aug 30 2005 24.32 11.55
L&T India Special Situation Apr 26 2006 28.87 10.62

Equity Large & Mid Cap

Scheme Inception Date Return 1 yr % Return 3 yr %
Quantum Long term Equity Feb 25 2006 23.69 11.78
UTI Opportunities Jul 20 2005 23.2 11.78
Canara Robeco Equity Diversified Sep 12 2003 24.7 11.51

Equity Mid & Small Cap

Scheme Inception Date Return 1 yr % Return 3 yr %
SBI Magnum Emerging Businesses Sep 17 2004 38.68 24.6
Reliance Equity Opportunities Mar 07 2005 34.07 17.32
Canara Robeco Equity Opportunities Feb 24 2005 33.92 17.21

Equity Sectoral

Scheme Inception Date Return 1 yr % Return 3 yr %
SBI Magnum FMCG Jul 03 1999 53.33 36.11
ICICI Pru FMCG Mar 30 1999 43.05 27.87
Reliance Pharma Mat 26 2004 28.88 20.87

Equity Tax Planning (ELSS)

Scheme Inception Date Return 1 yr % Return 3 yr %
Canara Robeco Equity Tax Saver Mar 31 1993 24.43 12.27
Reliance Tax Saver Aug 23 2005 31.83 12.23
Franklin India TaxShield Apr 10 1999 21.36 11.79

Equity Index

Scheme Inception Date Return 1 yr % Return 3 yr %
HDFC Index Sensex Plus Jul 10 2002 21.45 7.67
Quantum Index Jun 20 2008 22.54 6.45
LIC Nomura MF Index Nifty Nov 28 2002 21.32 6.02

Hope this will help is choosing the mutual funds. Of course, before investing, ensure to check the various Fund management charges involved and other risk performance measures. Read further to understand how do you compare and evaluate MF performance measures.

August 2012

Top 15 stock holdings by mutual fund schemes (by market Value) in India

Top 15 stock holdings by mutual fund schemes (by market Value) in India as on May 31, 2012

Company Name

No of Shares

Market Value (Cr.)

ICICI Bank Ltd.

20931593

1641.41

HDFC Bank Ltd.

28350785

1434.49

Infosys Ltd.

5354002

1305.43

Reliance Industries Ltd.

18333476

1294.27

Bharti Airtel Ltd.

35477786

1071.85

State Bank Of India

3846177

790.66

Oil & Natural Gas Corpn. Ltd.

28993438

735.5

Tata Consultancy Services Ltd.

5685768

708.31

Housing Development Finance Corporation Ltd.

11851185

682.96

Bharat Petroleum Corpn. Ltd.

9678946

674.15

Larsen & Toubro Ltd.

5600142

656.52

Power Grid Corpn. Of India Ltd.

58827429

625.58

Dr Reddys Laboratories Ltd.

3560060

601.73

Hindustan Unilever Ltd.

13562592

579.03

ITC Ltd.

22323154

513.54

The above data is as of May 31 2012. The stocks are held across various mutual fund schemes. Small retail investors always look out for Blue Chips… The above stocks are certainly the favorites among the fund managers. If the compilation were for 20 stocks, then the following stocks make the list as well : Coal India, Mahindra and Mahindra, Axis Bank, Tata Motors & Bajaj Auto.

June 2010

Beginner Investors : Investing with Index funds/ ETF’s is a good choice

Guide to Beginner Investors , Investing with Index funds, ETF's is a good choice, Financial Planning, Goal Oriented Planning, Understanding Risk.

What is Index Fund

An index fund is a a mutual fund which tries to replicate an index of a financial market. (For eg: Sensex or Nifty). An Index fund follows a passive investing strategy called indexing. It builds a portfolio with the same stocks in the same proportions as the index. The fund makes no effort to beat the index. The purpose of the Index Fund is to earn the same return as the index over a period of time.

What is ETF

ETF stands for Exchange Traded Funds — these are funds that trade on the stock exchange just like any stock. And they are stored in yuor Demat Account just like any Shares you purchase.

Why are Index Funds/ETF’s not as popular or not  advertised like other Mutual Funds ?

Expert Professionals / AMC’s don’t make enough fees from them, so they often go ignored. Just like Term insurance….. , Term Insurance is not promoted as much. Insurance companies do not benefit from them (You can see the correlation…., What is good for Investors and also available for cheap, is not often promoted enough. Because it does not pocket enough profits for the providers/agents…….)

What is the basic difference between Index Funds/ ETF’s  and Mutual Funds?

Mutual Funds try to beat the index over a period of time. This is active investing. Fund Managers are paid to beat the index over a period of time by generating alpha (The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.).

Index Funds/ ETF’s on the other hand, try to mirror the index returns. This is known as passive investing.

What is the advantage of Index Funds/ ETF’s over Mutual Funds?

– Much Lower Expense Ratios (AMC’s are much lower)

– More Flexible

– Transparent

– Approximately 60%-80% of equity mutual funds underperform the average return of the stock market over a period of time. This is the price of “active management”.

On top of this the AMC charges 2-2.5% of the portfolio value annually.

So , you have to pick the funds carefully. This becomes just like picking Individual Stocks. Of course, if you pick up the right funds (or for that matter right stocks) , then you would be beating the Index handsomely. However this process requires good amount of time, effort and judgement on your part. It sounds simple but is not easy.

– On the other hand , investing in index funds in the beginning , you can start participating in the capital markets and once you have a substantial base, then you can start exploring “active”  investing options.

The writeup on Types of Investors will get you to understand more about different kinds of investors.