Best Mutual Funds House [Graph]

Which is the best mutual fund House ? Is HDFC better than DSP Black Rock or Reliance ? A very good way of looking at it is to see all the equity oriented mutual fund schemes of a fund house and check how many of them have outperformed its benchmarks in different time frames like 3 yr, 5 yr and 7 yrs?

For instance, Birla Sun life which has 16 equity funds with more than 5 yrs of history, but out of those 16 funds almost 8 of them have not outperformed its benchmarks, which is not very encouraging. The same kind of scenario is with SBI & UTI mutual fund houses.

On the other hand if you see HDFC , Franklin templeton, Reliance & ICICI Prudential Fund house, they have done much better, a higher percentage of their schemes has outperformed their respective benchmarks. Its a very clear indicator of a AMC overall performance . So its very important to understand which AMC’s are doing better over their whole basket of mutual funds and which are not. Below is an info graphic which I have re-aligned using a PDF document published at Livemint article here . Credit goes to Kayezad E. Adajania from Livemint who has done this research. Good show !

Best Mutual Funds AMC

100% of HDFC Funds outperformed their benchmark

You can see in the above graph that only HDFC is one fund house which has all its equity schemes outperform its benchmarks in 3 yr, 5yr and 7 yr category. Which Mutual funds are you invested in? Do you feel you should move to the fund houses which have shown better performances ?

Which mutual fund AMC is your favorite and why ? What do you have to say about this study ?

175 CommentsAdd Comment

  1. Manish

    Thanks ever so much for your reply Manish. Apart from ICICI Balanced fund could you also through some insight on the following funds – if they are worth investing over a long period ( i am looking at investing for at least 15 years) in SIP

    1. UTI MNC Fund
    2. Axis Long Term Equity (I am looking at it only a stable return and not as a tax saving 80c tool)
    3. L&T India Value Fund

    Would you also suggest adding a Debt (Dynamic Bond / Gilt) fund to my portfolio?

    Thanks once again in advance.

  2. Manish

    I have invested 5K (SIP) in Tata Balanced Fund and 5K(SIP) in Canara Robecco Emerging Equities Fund. Can you please suggest how these funds are? Also i am looking to invest another 10-12K per month. Can you please suggest some funds which are a good addition to my portfolio?

  3. vfrank

    nice
    I recently came to know about SIP, it looks good to invest, I haven’t did yet, Im 31yrs and government employee so I can invest for 20+ years, would you suggest which category I should opt for? Should I put all amount only with one of the fund or divide into two or more funds. Please suggest me right way to invest in Sip. Thanks.

  4. Santosh

    It seems Franklin Templeton, HDFC, Quantum & DSP Blackrock are still AMCs to be associated with. Any changes in your opinion Manish?

    I am planning to invest small lumpsums on Sensex drops (5K-10K). Also, any enlightenment on Index funds?

    • Hi Santosh

      I think more than AMC Level, you need to look at fund level . Every AMC has some good and bad funds.

      You can surely put some money in index funds. But if you are timing the market at this level, then why funds ? Why not direct equity itself ?

  5. Nirali

    Hi Manish,

    Superb compilation!!

    Does HDFC fund house has track record of 100% out performing funds even as of today? Do you have such compilation of latest data or do you know about any website having such data?

    Also, What is your view on investing in long term gilt fund with the horizon of next 1 year to rip the benefits of ~12-15% ?

  6. Mayank

    Hi Manish, can you please suggest me some mutual funds for SIP of about 20,000/- per month. I have moderate to high risk appetite and have long term goals in mind.

  7. Abhishek Kotnala

    Hi Manish!

    First of all, I would like to thank you for writing such good articles and helping people like me to sort out our financial life.

    I am 29 years old and planning to start investing in MF’s to attain my long-term goals lined up mostly after 15-20 years (incl. Child’s grad & post grad education, marriage, my retirement & health fund)

    What would you advise a good mix of MF’s to attain these long-term goals assuming medium-to-high risk appetite.

    Thank you for your time.

    Regards,
    Abhishek

      • Abhishek Kotnala

        Thanks for your response Manish.

        My level of risk looks something like below:

        GOAL 1 Childs Grad & Post Grad Education (Time left to goal approx. 18-22 yrs.) – Can take high risk for up to 15-18 yrs and then shift towards safer investment options.

        Goal 2 Child’s marriage (Time left to goal approx. 26+ years) – Can take high risk up to 20 yrs.

        Goal 3 My Retirement & Health Fund (Time left 30 years) – Can take high risk for 20-22 years.

        Goal 4 Holiday Home :) (Time left 30+yrs) – Can take high risk for 22-25 years.

        From what I’ve understood by reading your articles, investing in Equity oriented MF’s would be my best bet for such a long time period.

        But the question is which variant of Equity? Large, Large & Mid, Mid & Small or ELSS?

        Please advise.

        Best regards
        Abhishek

  8. Debashree Halder

    Excellent article.. this one and others also… I just discovered this site yesterday and already glued to it. I am from technology background ( Electrical Engineer) and I always look for good materials to gather knowledge about finance and planning. I plan my own finance (and my husband’s too) . This site is very helpful.. thx..

  9. Sewa Konwar

    My exp with HDFC is worst, so far i have invested 50 Lakhs, the return is less than expected, 1 Lakh after 5 years.

  10. Roy

    I’m 28 and earning over 90K a month after taxes. I’m new to investing in mutual funds. I have a couple of ULIPs with HDFC that were bought in haste, which are doing surprisingly well thanks to the current market rally. Becoming financially aware only recently, I have started taking small steps towards securing my family’s future. I’m looking to start investing in mutual funds now. This is completely long term and I’m not shy about going for equity. Also, I would like to go for new open-ended plans. If you know any, please do mention them. I’ll do my fair share of research on them after that.
    My investment amount would be 6000 divided across three funds (where 2000(equity) + 2000(equity) + 2000(debt)). Can you please suggest some interesting MFs that I can have a look at? I understand that it would be just your opinion and totally my decision whether I should go for it or not. But, if you have something in mind, do not hold back. Do recommend.
    Ideally something with a blend of HDFC, SBI and ICICI. But, others are also welcome.

  11. Rathore Vipin

    Hi Manish,

    I follow your articles regularly. After reading your blogs reagardig Sip investment in Elss as it helps in tax saving as well, I started investing in Canara Rebeco 3000/month and in Franklin with 2000/month. I can not invest more than 5000 a month in Mutual funds as i m investing at other option as well. Regularly investing in these two funds and reading different reviews about them I have couple of questions..please help me on them.

    1) looking at the good performance of franklin compared to canara rebecco, Shall i shuffle the amount of investment like 3000/month in franklin and 2000/month in canra rebeco…? will it help me to get more returns.

    2) is it wise for me to have one more fund included in my investment like Hdfc or something better to have better return..like.. 2500 in franklin, 1500 in canara and 1000 in any other fund… will that help me or I m just ok with my current options..plz suggest.

    • 1. You can surely change the numbers and do 3000 in franklin and 2000 in canara , but there is no guarantee that franklin will do better than canara, Its purely your decision

      2. No , Its not neccessary that the overall return will improve. MOre funds does not mean more return . YOu should check out my book 16 personal finance principles every investor should know to learn more about this http://bit.ly/personal-finance-book

      Manish

  12. astrosunil

    I am investing in MF through Mahindra finance. What is this actually ? a fund house ? What commission charges do they take ? I was told no charges . Can you please enlighten . Thanks

    • Its just like an agent (corporate agent) . There might not be any charges, but they will get the commissions from your MF and your expense ratio will be higher than the DIRECT plan !

  13. Nandan

    Hi Manish,
    I’ve a query on switching of MF.
    I understand that we get ‘advantage of Compounding’ by investing in same fund for long duration. Suppose we have invested in ABC fund for 10 years; Now the fund is not doing well. And so we switch to another fund (say XYZ fund). In such case can we get the advantage of compounding? After all switching is nothing but redemption from old fund and invest lumsum in new fund (In the above example, switching from ABC fund by redeeming the units and then investing as a lumpsum in XYZ fund).

    Thanks in advance,
    Regards,
    Nandan

  14. pradyush81

    Hi Manish ,
    I have been investing Rs 5000 in Reliance – Growth Fund (G) , Rs 2500 in HDFC top 200 and Rs 2500 in SBI magnum contra . I have been investing in the Reliance and SBI MF’s since 6 years now. I dont see much returns in the above 2 MF;s and their rating too is not that great in Moneycontrol.com .They are being rated as Average and Below average .
    Should I discontinue my investment in SBI and Reliance and instead invest in Franklin India Bluechip Fund (G) and SBI Emerging Business(G) .

  15. Chandan

    Hello Manish,

    I am not much awared about the market .But on the suggestions my friend and after googling for gold investment I get lured and invested 50k in gold fund in march 2013.Now I have loss of 1000 approx and I think the fund would’nt provide better returns in future too.
    Should I redeem the fund though having 1% expense ratio and invest in other options like FDs(which have atleast 9% interest) or in any other other area as per your opinion?
    Please Please help me as I am fearing for a big loss.

    Thanks
    Chandan

      • Chandan

        Thanks a lot….I have invested this amount(50k) in march 2013 for long term 15-20 years.I saw the gold history:
        504 INR/gram in 2003
        2420 INR/gram in 2013 with atleast 16% return

        I hope Gold will shine in future with atleast 9% returns equivalent to FDs .
        Whats your opinion….

        Thanks,
        Chandan

        • Chandan

          Hi Manish,

          I am stucked…..can you please help…..
          1)Should I switch from SBI Gold Fund to SBI FMCG or SBI Magnum Equity with all amount(44.5k) after loss of 5.5 k approx.or should I opt swp
          2)Or should I not redeem the SBI Gold Fund.
          3)Or should I invest in other funds….
          Great Confusion……Can you please suggest any fund/stock for recovery…

          Regards,
          Chandan

  16. Mahesh Vidhate

    hey Manish,
    Nice article , I am a new investor in MF so want to invest in MF through SIP.
    I have selected HDFC Top 200 for Rs 1000 monthly. can u pls confirm it will be great for me or not ?

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