Best Equity Mutual Funds-VRK100-21Sep2011

Best Equity Mutual Funds

Equity mutual funds are in existence in India for almost two decades. The overall performance record of them is mixed. But, there are some equity schemes which have provided superior returns to investors. Selecting the best equity mutual fund schemes from a large number of schemes is a challenge. Here is the list:

	All-season Equity Mutual Funds
1	Birla Sunlife Frontline Equity
2	Canara Robeco Equity Diversified
3	Fidelity Equity
4	Franklin India Bluechip
5	HDFC Top200
6	Quantum Long-term Equity
7	UTI Opportunities

Schemes	NAV	AAUM	Return %
	Rs	Rs crore	2007	2008	2009	2010	2011
Birla Sunlife Frontline Equity	81.3	2 909	62.3	-48.5	90.5	18.7	-14.2
Canara Robeco Equity Diversified	53.1	427	63.4	-50.8	93.0	20.7	-7.4
Fidelity Equity	33.6	3 302	55.3	-50.3	86.1	26.9	-11.5
Franklin India Bluechip	204.0	3 841	47.4	-48.1	84.5	23.0	-10.6
HDFC Top200	194.0	10 507	54.5	-45.4	94.5	25.1	-14.0
Quantum Long-term Equity	20.7	77	45.9	-47.0	103.0	28.8	-13.4
UTI Opportunities	26.9	1 576	71.3	-49.0	97.6	19.4	-6.5
Nifty (NSE) return	-	-	54.8	-51.8	75.8	17.9	-16.2

            Notes: NAV – net asset value as on 20Sep2011 for growth options

                           AAUM – average assets under management as on 30Jun2011

                           2011 return is up to 20Sep2011

Important Highlights:

ü      All the above are open-ended diversified equity funds holding mainly large-cap stocks; with a good long-term track record of more than five years

ü      They hold 10% to 20% in mid-cap stocks, except Quantum LT Equity and UTI Opportunities funds, which hold 34% and 26% respectively in mid-caps

ü      The lowest expense ratio of 1.5% per annum is charged by Quantum LTE

ü      In the past four months, new fund managers have joined Canara Robeco Equity Diversified and UTI Opportunities schemes

ü      All the fund managers are having good experience of 10 to 15 years

ü      These funds protect the investors’ interest during downward market trends

ü      These funds have provided superior and consistent returns in the past

ü      As can be seen from the above table, they have outperformed the Nifty index as well as their benchmark indices

Investment Principles

ü      It is always better for investors to invest in equity funds in a systematic and phased manner – growth options are advisable

ü      Equity funds perform well in periods of five years or more

ü      Investors should track the performance of funds at least every three months

ü      Never borrow to invest in equities or equity mutual funds

ü      Equity mutual funds carry higher risk and their returns are very volatile

ü      If you are a long-term investor, please ignore the short-term trends

“FINALLY, HAPPY INVESTING!”

Note: Other Mutual Fund schemes worth considering are: BNP Paribas Dividend Yield, DSP BlackRock Top100 Equity, Franklin India Prima Plus, HDFC Equity, ICICI Prudential Dynamic, IDFC Premier Equity Plan A, Reliance Equity Opportunities, etc.

Data Source: ValueResearchOnline

Disclaimer: The author is an investment analyst & writer. His views are personal. Please consult your certified financial adviser before making any equity investments. The author is an equity investor and he has a vested interest in the stock market movements. It is safe to assume that he has investments in a few of the above mutual fund schemes. His articles on financial markets can be accessed at www.ramakrishnavadlamudi.blogspot.com