The desolate domestic and overseas economic scenario advocated in the past three to five years has lead down the enthusiasm of investors only because of the consistent poor performance of equity. This is the sole reasons as to why investment experts always keep on asking individual investors to dedicatedly overview their equity mutual funds. Whatever, might it be, equity mutual funds will always be the best way for small investors to strengthen their equity portfolio so as to achieve their goals in life.
In today’s article, we have come up with the top 10 equity mutual funds for small investors as advised by some of the top wealth managers and financial experts in the industry. Have a look.
1. Franklin India Bluechip Fund
Franklin India Bluechip Fund has been a consistent player since the past two decades. It aims in focusing on investing in companies with strong financials, quality management and market leadership. The prevalent market conditions are not of much concern to this company. Vidya Bala, head of research, opines about the venture as, “A combination of value-conscious stock selection, and sticking to blue chips stood in its stead since launch. The fund is known to be methodical in booking profits in market peaks.”
2. Birla Sunlife Frontline Equity Fund
Birla Sunlife Frontline Equity Fund deals in large-cap stock investment with a small exposure to mid-caps at times. Pankaj Pandey, head of research, ICICI Securities opines, “The fund targets the same sectoral weights as BSE 200 hence performance deviation against the benchmark is comparatively lower and has a diversified portfolio.”
3. SBI Emerging Businesses Fund
SBI Emerging Businesses Fund believes in investing in stocks with high growth potential. They therefore, do not mind investing in small-cap as well as mid-cap stocks. The portfolio is hence well-diversified with low concentration risk. Surajit Mishra, executive VP and National Sales Head, Bajaj Capital says, “It is a top notch performer in the mid-cap category in terms of all the parameters such as risk-adjusted return, superior Alpha, downside risk control ability and consistency. It has beaten the category average as well as the benchmark consecutively in the past four calendar years since 2009.”
4. ICICI Prudential Focused Bluechip Fund
ICICI Prudential Focused Bluechip Fund is another large cap diversified equity fund that has been activelt dealing with 20-25 large caps portfolios of the world. The fund manager believes in a specific growth style of investment. It is actually a blend of concentration and diversification of the bottom-up and top-down investment approach. The company has a very good position in high conviction stocks. As Feroze Aziz, the director-investment products at Anand Rathi Wealth Management says, “It has outperformed its benchmark in one; three and five year’s annualized returns as of September 30, 2013. It has been able to generate SIP returns of 6.05% vis-a-vis its benchmark which delivered 2.49% for three years as of September 30, 2013.”
5. Mirae Asset India Opportunities Fund
The 11.46% returns since its establishment in 2008 speaks for itself. It has been holding financials, IT and pharma as its top sectoral bets only to manage the volatile market outside. Renu Pothen, research head at Fundsupermart says, “This fund follows a core and tactical strategy. The former is aimed at providing long term capital appreciation while the latter aims at generating the extra alpha in the portfolio. The fund’s bias towards large-cap space protects itself during market volatility.”
6. Axis Equity Fund
Axis Equity Fund includes both large- and mid-cap stocks to its list. Though the venture is quite new, owing to its inception in 2010, the fund is a mix of value and growth styles and does not have a long track record to judge the same. Bajaj Capital’s Mishra says, “The fund manager follows a bottom-up stock picking approach while constructing a portfolio. He bets on those companies that enjoy high growth potential and high quality businesses.”
7. Quantum Long Term Equity Fund
Quantum Long Term Equity Fund has been successfully able to deliver 17.68% returns against 11.77% average returns on large and mid cap equity diversified funds in the period of last five years. The fund buys and holds shares of quality companies and never move from the investment even during low market sentiments. Head mutual fund researcher, Vidya Bala says, “Offbeat sector choices with energy and auto topping sector holding, unlike banking and financial services, seen as top holdings, in most other fund portfolios is a factor that differentiates this fund from rest.”
8. Reliance Equity Opportunity Fund
Reliance Equity Opportunity Fund is a multi-cap fund that believes in investing in stable large sized companies and growth oriented mid- and small-sized companies of the world. Ashish Shanker, head-investment advisory at Motilal Oswal Wealth Management says, “The high sortino ratio of the fund indicates that it has done well in rising markets and has contained downside risk effectively.”
9. HDFC Equity
HDFC Equity is a consistent and better performing fund. It is one of the schemes in the Indian mutual fund industry and is highly renowned for its multi-cap segment. HDFC Equity has always been an apt multi-cap investment option owing to its record of performing profoundly in bullish and bearish markets.
10. IDFC Premier Equity Fund
IDFC Premier Equity Fund has been actively creating benefits as they exactly know how to invest in good quality mid-sized companies that has the potentiality to grow into large businesses in the near future. IDFC has been able to give back 19.08% returns in the last five years. Anshu Kapoor, head, private wealth management, Edelweiss Capital says, “The fund has consistently generated significant alpha over fund’s own as well as Edel Benchmark.”
Akshay Agarwal
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