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 ?

173 CommentsAdd Comment

  1. ASHAL JAUHARI

    Dear Manish, kudos for providing such intensive data. Thanks to Kayezad E. Adajania also for such brain storming graphical representation.

    The performance of HDFC as a fund house should be looked upon by those who are doubting the performance of of HDFC Top 200 fund in particular. I do agree, we should not drive our vehicle while looking into rear view mirror (past performance) but in a sense for 5 & 7 Y period, we get a sense of performance expectation.

    Thanks

    Ashal

  2. Vasanth Kumar J

    Nice Article again!!

    Manish – I read your book Jago Investor 2 days ago. Completed reading in less than 8 hrs. It was very interesting. I’ve read many articles and blogs which explains the importance of term insurance and none of them convinced me. You have successfully convinced me (rather i should say you made me realise the importance) for a term insurance. Thanks for that. All sections are explained very clearly. Good work and thanks for the book.

    Are you planning to write another book or something? I felt this book was focussing more on making the people understand the importance of investment. If you can write another book focussing on the different products it would be great!! I know this blog almost contains everything but a book like that would be amazing.

      • Vasanth Kumar J

        Planning for SBI. SBI works out to 18k per year for 1 cr SA. Whatever the case i’ll opt for one end of this week.

      • Vasanth Kumar J

        Planning for SBI. SBI works out to 18k per year for 1 cr SA. Whatever the case i’ll opt for one end of this week. Any suggestions for pure term insurance?

        So i can expect another book shortly?? Eager & curious !!

  3. Raghu

    Thanks Manish for sharing this and thanks to Kayezad for all the good work.

    Now coming to HDFC (and any other fund house), while it is indeed great to see HDFC mutual funds performance for all the funds being managed to do well, is it not true to NOT to put all your eggs with one funds house ?

    Thanks

  4. Venkat

    Clearly, HDFC and Canara Robeco are the winners. I personally feel HDFC team is the best. Quantum also a winner in Mid-Cap range (Atul is managing Quantum Long Term Equity and Quantum Tax Saver – both are performing very well past three years). Quantum is selective and the first AMC providing direct investor subscription (via online also), I mean least costly fund.

    • Jay

      Canara Robeco’s Head Equity might be leaving and joining L&T mutual Fund, then next year there may not be any under performance in L&T Mutual Fund. At that time may be CanRobeco funds have more under performing funds. Then what will you do. Same with HDFC MF. This cannot be the criteria for choosing a Fund House.

      • Venkat

        Agreed.

        Not concerned with the fund manager switch, and note that another good people are there the team. For example Canara Robeco Tax saver is on top three in last 3 year and 5 year. The equity head had recently joined, and I agree that he managed the new large cap fund well.

        This is the risk one has to bear. Every investor needs to review their portfolio atleast once in six months, and do necessary correction if they are not performing well on the lines of peers irrespective of market conditions. It all depends on how well the fund manager churns the money. If they are under performing one needs a gradual switch.

        Thanks for the info.

        • Jay

          Lets wait and see how the fund performs in Can Robeco MF after fund manager switch. But Fund Manager switch is one of the criteria to choose a Fund House same as whether how many schemes in a Fund House under perform. So there are various criterias to choose a Fund House and a scheme.

          • Venkat

            Right.

            Even the fund manager who keeps switching may not be able to deliver stable performance. Might be the fund manager is an expert, but it is the team that collectively beats the market. Switching across AMCs will kill time on both of the fund house.

  5. Satya

    HDFC is my favourite fund house and glad to see it figuring here … In fact, the reason I picked HDFC Young Star ULIP over Birla Sunlife ULIP was because of the MF house capability … Of course, i have come to regret buying the ULIP … But the MFs that I have are great …

  6. Dominic

    I am with Fidelity and HDFC for the past 6 years. Based on my fund performance I like Fidelity more than HDFC. I dont know how that is going to go with L&T.

  7. TS Ashok

    Great analysis. I did not loose a single penny , when i invested in HDFC MF..It is real..whereas i lost many in others.

    • The conclusion should not be like this , actually HDFC tomm can have bad funds, all this article is communicating is different AMC can be different from each other and right now HDFC , DSP and Franklin are good ones

      • Jay

        Manishji, lay man is not able to interpret this article properly. Same thing happens while investing in Mutual Funds. People think mutual fund is a free ATM machine where money grows by fluke and can withdraw as and when required.

          • Jay

            Manishji, Wait for the market to pick up then you will see only these kind of people. I have seen lots of people who talk about long term investment but end up in withdrawing money within a year. I have seen individual people lending money for high interest rate but due to poor recovery they have invested in mutual funds for short term as market was in peak. Lots of people have invested in 2007 & 2008 beginning for short term money making. I myself have collected a record breaking collection for an NFO as an AMC RM during end of 2007.

  8. Ms Hyacinth

    I think Franklin Templeton also is good as per the graph. Though am not very familiar have invested in HDFC/ICICI Prudential/BNP paribas/Templeton. A little bit more info about the type of things one has to see while investing in Mutual funds. Recently I read in TOI page that we need to check the SID(Scheme Information Document)/SAI(Statement of Addl. info) /KIM (Key info document)of the Fund house which is the right of the investor, hence checked with Templeton to send mje these. Could you throw some light on this please? I have invested thru’ Bluechip person who suggested me the above funds.

  9. KRANTIVIR RAJPUT

    My MF SIPs are in the following since OCTOBER 2011.
    All are of Rs.1000/- each & with GROWTH OPTION.

    (1.) ICICI PRUDENTIAL Focussed Bluechip Equity Fund
    (2.) BIRLA SUNLIFE MNC Fund
    (3.) Reliance Gold Savings Fund
    (4.) TATA Retirement Fund-Prudent Option.
    (5.) ING VYASA Fund of Funds.

    Thanx to manish for this article & encouraging all through his previous posts the importance of MF-SIP.

  10. Jeetu

    Nice Article…
    Great compilation by Livemint team.
    Good job by Jagoinvestor team to bring it to all through this medium/platform.

  11. geo thomas

    hi manish plz guide me i am having an sip in reliance diversified power sector fund, i believe this sector have a grt potential to give good return as this is one sector where govt has to infuse lot of investment, but it will take time, as mine is goal based i dont mind waiting for 10 years,more ever it is just 10% of my mf portfolio, i may think of changing only if relaince changes the investment mandate from power to any other sector, whats ur take on it, secondly when you show the funds which are beating benchmark , if clients have sbi funds which had been a performer earlier, last three years its performance has come down, should i exit and go to other good fund house, and what gurantee that the good fund which i have bought will not perform badly, broadly i may summarise that stay in good fund house with good track record and dont worry abt the return because over a long period most of the fund will give atleast 12 to 15% return, i need ur frank opinion on this.

  12. Siva Prasad

    Dear Manish,

    Quantum, Fielity and AIG Global also has all outperforming Funds. I believe in Quantum and Prashant Jain.
    Any other views on my point.

    Thank You
    R Siva Prasad

  13. Raj

    Hi Manish,

    You are really helping us to understand mutual funds. I want to start SIP of 5000 Rs. in mutual funds. I want to invest 2000,2000 and 1000 in three good funds. Please suggests.

  14. ssdginc

    Though the data clearly indicates that HDFC is a winner but we shouldnt put all our eggs in the same basket. We should diversify among other fund houses as well. My favourites are ICICI, UTI, idfc, dspbr apart from HDFC.

  15. koguty

    Top marks to LIC and JM – great going chaps, consistent in all periods [3/5/7 years].

    On a side note – the equity related products/ULIPs of LIC are also showing similar “performance” ?

    LIC – god’s gift to Indian investors [insurance ke saath investment free] ==> so secure an investment that it fails the benchmark for 7 years! yay!

    How not to invest – the LIC/Nomura way –> this should be a post here.

      • koguty

        ** facepalm **
        Did you even bother to read the other lines of my post?

        Please read the last line of my post –
        How NOT to invest – the LIC/Nomura way ….

        I am not at all a fan of LIC and I have been fighting with my parents/relatives/in-laws to make them understand what bogus P.O.S. policies LIC sells – their “performance” [or lack thereof] only justifies how lame they are – beaten by the benchmark they set out for themselves [mentioned in my post about them failing benchmark for 7, yes 7 years – isn’t that an awfully long time for them to understand how useless they are?].
        In spite of their consistency [of failing to meet the benchmark], how much are investors putting money in LIC schemes? What is the AUM of the LIC funds?

  16. Raghu

    Hi Manish,
    First of all thanks a lot for your articals and suggestion’s . i am also here expecting some guidance regarding MF investment monthly SIP. i would like to invest Rs. 5000 /-. i have already investing 3000/- i.e each 1000 in HDFC Equity(G),CanaraRobeco Equity Diversified(G) and SBI Magnaum Emerging Business(G). could you plz suggest me best funds(Equity and Debt funds) to invest for 5000/- through SIP and also i am seeking your opinion about my existing investing funds.

    thanks

  17. Naina

    HDFC was once pulled by SEBI for insider trading charge.They had to remove one of its fund manager for this activity.HDFC MF is not Doodh ka Dhula……..My vote will go for Franklin Templeton…….This is one of the fund house which is pioneer[not Kothari Pioneer in previous avtaar] in setting new innovative ideas in mutual fund industry……IDFC is also good…..HDFC comes at third place according to me……

  18. Sougato Pal

    Very good and informative article. HDFC is also my favorite fund house. I also have investment in dsp black rock and birla sun life

  19. DINESH

    Thank You Manish ,

    I knew HDFC is one of the best , but i never doubted Birla Sun LIfe .
    Now i have to review it.

    I am invested in HDFC , Reliance and Birla Sun Life.

    Regards

    Dinesh Saboo

  20. varghese

    Hi Manish,
    Thanks. I am having investment in HDFC,Franklin & Releiance.
    The percentage of investment is 40% in HDFC,35% in Reliance & 25% in FranFranklin.
    If all are investing in HDFC how you you will compare the performance?

    Regards,

  21. Mansoor

    Excellent article Manish, I am very glad to read this with facts. Without biases, with the fund managers, my favorite AMC are HDFC and Franklin Templeton. I am very happy to see both AMC’s numbers reflecting their performance. Many thanks to Kayezad.
    I hold HDFC Equity, HDFC Top 200 and HDFC Prudence (I have moved the balanced fund to Prudence to consolidate). I am also planning to move the HDFC equity fund to Top 200. From FT, I invest in FT Bluechip fund.
    I am a little disappointed to see IDFC’s performance as an AMC but I love the IDFC Premier Equity A fund. Great small cap fund to hold.

  22. Mayank Arora

    Performance of the fund depends on the Fund Manager……. What Kenneth Andrade has shown with IDFC Premier Equity or IDFC Sterling Fund, Sandeep Sabharwal with SBI Magnum etc….. What makes HDFC different, is that they have a streamlined dynamic process of choosing equity in place for every fund, therefore changing of Fund Manager in any of their funds does not alter the process of choosing stocks greatly and hence the performance of HDFC as AMC outperforms all others. Fidelity is among those pioneers which came to light under the good hands of Peter Lynch – Author of “One up on Wall Street”, a book as simple as Manish’s to enter the stock market and fund manager of Fidelity Magellan fund, in the 70s n 80s. He proved that AUM of the fund does not affect it’s performance if there is consistency in selecting undervalued stocks.
    I am investing continuously in HDFC Cash Management Treasury Adv fund (DD) that gives returns as high as 7.5% pa (post tax) instead of meagre 4% (pre tax) in savings a/c and that too on daily basis instead of bank, which credits interest on quarterly or half yearly basis. This is also done for short term goals. I am also investing in HDFC Short term Oppurtunities fund, HDFC Midcap and HDFC Growth Fund funds for longer term goals. Other funds invested are IDFC Premier Equity, IDFC Streling and UTI Oppurtunities fund.

    • Thanks for these information Mayank, I was not aware of these things that how a AMC is managing its funds, do you work at AMC or mutual fund level ? From where did you know all this info ?

      Manish

      • Mayank Arora

        I am a Chief Officer in Merchant Navy, presently sailing to and fro between Gulf and Japan and takes keen interest in Financial Articles. The information gathered was from close sources who work with different AMCs. I am an ardent follower of your blog and thanks to you and your team who post plethora of complicated financial information into simple words!!! – Mayank

    • Mayank – Peter Lynch’s Magellan fund became a closed fund for several years because of the rise in AUM. That does not take the credit away from Peter Lynch a bit he was anyways managing a gargantuan fund all the time. The fall in performance when it opened for subscription again is a palpabale one. Such is the story with all large groups. Reliance still is sitting on 25k crore cash not knowing how to deploy it effectively except some stock buyback. Warren Buffet’s Berkshire H has an excellent long term record but to grow at the old rates is difficult because of the size. After some point size becomes a liability, really.

      • Anrand

        Their large size is another reason (apart from the frontrunning related scandal) to be concerned with HDFC’s schemes. But they seem to have managed to outperform other funds despite their much larger size. If the experience from the US and other places suggests that size is an enemy of outperformance then I guess either HDFC has managed to defy this rule or the other funds are so much worse that despite the size handicap, HDFC is managing to outperform them comfortably.

  23. Sachin

    Hi Manish,
    Thanks for yet another informative article!

    I have a question on SIP charges. This is slightly unrelated to the topic being discussed.

    Currenly I am investing in a HDFC scheme for past one year through ICICIDirect.com. My current outflow is 2000 Rs + Rs. 33 fees (not sure how much of it goes to ICICIDirect and to the MF house). So the total outflow is Rs. 2033 but only 2000 gets invested in the fund. Anyways I plan to increase SIP to Rs. 3000 from next month onwards. Note that the fees of Rs.33 is same for Rs.2000 or Rs.3000, when you start a new SIP. So now if I increase SIP to an amout which falls in the same fee band, I am assuming that there won’t be any fees increase. Please let me know if you think otherwise.

    I asked this question on Icicidirect.com a couple of times but their customer service has been pathetic. They have been pointing to the fees structure rathen than giving simple answer to the above query. Please help.

    Sachin

    • Sachin

      ICICI has a fees per SIP of Rs 30 (+tax) , so its coming to Rs 33, so if you do any SIP , there will be charge of Rs 33 each time , if you have Rs 8 lacs of corpus with them, then its 0 . What other answer do you want ? If you do this same thing from companies like fundsindia or directly from fund house , there will be no charges .

      • Sachin

        Thanks Manish for quick response.

        (1) So if you increase SIP amount in the same MF scheme, the charges will not increase / double. i.e. I will keep paying only Rs 33 per SIP irrespective of the amount, right?

        (2) I think I will stick to ICICIdirect for now although it will take at least 4-5 years to accumulate 8 lacs corpus even with increasing SIP (by then I would have lost close to 10,000 Rs towards fees and I am not even considering interest lost). Anyways, currently I am paying Rs. 200 per month (6 funds * 33 Rs.) in fees. I think I will close down 2 (1 equity + 1 gold) of them and increse SIP in remaining 4 (3 equity + 1 gold) . This will bring down monthly fees to Rs. 133. Please let me know if this is sound approach?

        (3) Also is it possible to stop SIP in MF without actually redeeming the units?

        Sachin

        • Sachin

          1. Yes

          2. You need to see it like this , over next 4 yrs you will pay 133 * 12 * 4 = Rs 6384 . What goes in small chunks does not hurt . If ICICI tells you to pay that amount upfront . Will you pay that much is asked in one shot . thats the real issue, you will get it all FREE if you are ready to take that one step which will save you all that money !

          3. Yes, just ask your bank to step ECS and also ask AMC to stop the SIP , they will do it once you have paid for atleast 6 months !

          Manish

  24. Manish Varshney

    Hi Manish,

    I have a query regarding SIP Exit.
    Suppose my SIP Entry Date is 10th July 2012 and Exit Date is 10th July 2022 (10years).
    1. At the time of start of SIP, I have to choose a fixed Exit date?
    2. And suppose if i have to choose a fixed date and i have opted for a 1o Years tenure i.e. the Exit Date on 10th July 2022. Then will i bound to redeem the UNITS Exactly on 1oth July 2022. Can not i redeem after the opted Exit Date or before the Exit Date.

    • Manish

      That exit date is just a tenure for which you want to run the SIP , its like a date you need to give in start , so that you have option to run the SIP . You can close your SIP in between after 6 months and you can redeem your funds anytime you want, even after 10 days of starting SIP ! , there is no lock in unless its a ELSS funds

  25. Look at it this way:

    Rs. 30 is 1% of Rs. 3000 (and 1.5% of 2000). That IS a huge amount. If your scheme returns 15% CAGR your seemingly 1% expense at the beginning will make a dent of upto 13-15% in the final corpus over 15 years and about 8-10% over 5 years.

    The point is Rs. 30 appears small but the impact on final corpus is big and when you can get it done for free somewhere else why even take the pain to do with ICICI Direct. If you want 1 stop solution then build your corpus elsewhere and when it crosses 8 lac limit move it to ICICI Direct.

  26. Manish – I agree with the performance results. No doubt HDFC has a good process in place and is indeed a good bet to count on like few of the top AMCs.

    However HDFC and DSP have a record of siding with the company management. Lets say HDFC holds ICICI bank shares – some 1 crore shares across all schemes. (I am making up this number). Lets say that the bank proposed a 10 lac accomodation expenses to the board of directors or decided the dividend be increased to please the market or decided the dividend be slashed to expand business. All these corporate actions need to be voted on and Mutual funds holding a significant number of shares can either vote for or against the decision made by the board of directors.

    HDFC, DSP etc. are known to be lazy and have sided most of the time with the directors of companies not taking into consideration what is in the best interest of the shareholders (their MF holders). Franklin and Fidelity have a full fledged team that does a due diligence on every single corporate action and have a track record of siding with the board only if their due diligence also throws up such a decision. Obviously this increases the cost of their funds as well!!

    In that way HDFC and DSP do fail in their fiduciary duty to the client. They are for sure good for our wallet at the end of the day but with lesser conscience!

  27. Ranga

    Planning to invest in SBI magnum FMCG fund.. whats your view on it…

    I am looking for 5-7 years of holding in this fund..

  28. Bishwanath Sanfui

    Manish jee,
    I want to know about Birla Sun Life Vision Plan, Pls. suggest whether it is a good policy to opt.

    Regards,
    Bishwanath

  29. Bishwanath Sanfui

    Manish jee,
    I got suggestion from some agent to take a Birla Sun Life Vision Plan, can you pls. suggest whether it is a good policy to opt for a period of 21 yrs. Pls. give your valuable opinion for the same.

    Regards,
    Bishwanath

  30. Mayank Arora

    Dear justgrowmymoney,

    Thanks for the info, it was an eye opener.
    1. In clear terms what should be the right AUM of fund that one should bear in mind while investing ? For instance give us an idea that one should invest in a fund that has a corpus between lat’s say 100 cr and 1000 Cr.
    2. Does your post mean that a 50 Cr fund will have better chances of giving higher returns than the one with 5000 Cr?

    Mayank

  31. Nitin sharma

    Hi Manish,

    Nice article. I am invested in below funds:

    Hdfc top 200
    DSP top 100
    Hdfc prudence
    Tata equity p/e
    IDFC Premier Equity Plan
    ICICI Pru Dynamic.

    I do all my investments through ICICIDIRECT.com for the convenience they provide.

    I have a question. If my investments cross 8 Lacs and I have existing SIP , they’ll stop charging the Rs 33 fees or I’ll have to stop and start SIP. I can obiviously ask customer support but if you know.

    Thanks

  32. Jeebu

    Hello Manish

    Can i invest a fixed amount in mutual funds on a monthly basis without SIP option. I would be able to choose good funds based on market ratings and also time the market. :) What are its disadvantages…

    • Jeebu

      You can do it if you want to do it manually . just that the disadvantage part is the probability that you will succeed in this, out of 100 people who wanted to do what you want it , not more than 2-3 end up being consistent for 12 months .

    • Anand

      If it is without SIP, the minimum you need to invest is 5000 Rs, if it is first-time investment in a chosen fund.

  33. Sai Krishna

    Hi Manish,
    am very lucky that i came across your blog in the very first month of my job.
    this is my portfolio. please suggest me whether any changes required.
    my first salary fixed deposit (just for rememberance) – 37000
    ppf every month 2000
    vpf every month 2500
    e-RD every month 2500
    SIP’s in HDFC Top200 – 1000 every month
    HDFC Equity – 1000 every month
    HDFC Balanced – 1000 every month
    HDFC GOLD FUND – 500 every month
    and i invested 7000rs in buying physical gold coin
    took LIC term policy Jeevan amulya for 30 lakhs
    HDFC online term policy for 20lakhs
    please suggest me in improving my portfolio

  34. Sandeep purohit

    hi Manish
    Good informative article, what are your view regarding quantum although small fund house with 2 schemes, Do you recommended investing in this fund house for Quantum long term Equity (large and mid cap) ?

  35. K C Rana

    Hi Manish,

    Thanks a lot for your articles which are highly informative and useful.
    I am very new to share market and want to invest in the same for long term.
    I am 28 yrs old and have budget of around 70k.
    One of my relative have bought shares of 10k of a nationalized bank in 2002.Now the price of shares are 80k . Should I buy shares of nationalized banks as these are safe and profitable.
    I have come to know about term mutual fund ,should I buy the same.
    I am confused with some terms eg equity,SIP………
    Please suggest me the best option which are profitable and safe with company name and the process to do so.

    Thanks & Regards,
    Krishan

    • Krishna

      It does not work like that. What happened with your relative is not a rule , It might not get repeated again. Do not assume that it always works like that, no stock is safe ! . I think you should spend some more time in learning about stock market

      • K C Rana

        I am planning to invest in SBI Emerging Businesses Fund (G) for 1 year.Is it good….Thanks for your kind suggestion.

        K C Rana

          • K C Rana

            Heartiest thanks for your valuable time and feedback.
            As per your advise I did more R&D on stock market.I have some questions below:
            1.Please suggest me any two MF from below funds for the long term:
            a)SBI Emerging Business(G)
            b)Quantum Long Term Equity Fund
            c)Reliance Equity oppurtunities Fund
            d)ICICI Prudential Discovery Fund
            e)HDFC Equity Fund(G)

            2.Should I invest through SIP say 5000 pm.
            3.Should I invest in two MF inspite of one considering the risk.
            4.Is there any application charges for the MF.I come this term when I saw the ICICI MF and Reliance MF links.
            5.Is SBI MF is different with others as it is of SBI a govt bank.
            6.Do I need to mention the investment years say 5 years for the MF investment while purchasing or I will be asked by the AMC while renewal after each year .
            7.Should I buy the MF for one year and then renew after each year.

            Thanks & Regards,
            K C Rana

            • 1. a and b
              2. yes
              3. Not required
              4. You pay agents if for each application, if you go directly with funds, then you dont
              5. No, its the same
              6. You can mention in start
              7. No , better do it for 5 yrs , you can stop in between if required

              Manish

              • K C Rana

                Thanks a lot Manish for your kind suggestions…..I have come to know that markets will slip slightly post Budget 2013..so is it better to invest in March end……
                As I am a first time investor Do I need to visit the AMC office physically.

                  • K C Rana

                    Hi Manish,
                    Bothering you once again…….Ever since I have visited your site….I am saving money and has started investment in MFS(lot of things yet to do like term insurance,ppf etc… as of now I don’t have much salary).
                    I want to invest 8k monthly on MF SIPs for long term.
                    Till now I have only started SIP of 3k in SBI Emerging business Fund.
                    I have also invested 9k in Quantum MF (not have SIP 3k/month ) till now.
                    I want to add one of the below large cap fund to my portfolio:
                    1.Franklin India Bluechip(my choice till now)
                    2.DSP BlackRock Top 100 Equity
                    3.SBI Magnum Equity Fund
                    4.ICICI Prudential Top 100 Fund
                    5.HDFC Top 200

                    I want to readjust my investments SIPs as:
                    1. Large Cap e.g. Franklin Bluechip – 3500
                    2. Mid Cap i.e. Quantum MF – 2500
                    3. Small Cap i.e. SBI Emerging Buss – 2000

                    Please tell me if all the investments & amount are ok or not.

                    Thanks & Regards,
                    K C Rana

      • K C Rana

        Hi Manish,

        I often visits money control and see many schemes on rank basis.
        So should we always try to invest in rank 1 schemes as mentioned in the website….is there any benefit of this ranking in investment……
        what should be the criteria for choosing the scheme for long term say 10 years.

        Thanks
        Krishan

      • Rekha

        Hi Manish,

        I have MF SIP of 3k each in two equity small and mid cap funds.Have plan to invest in large cap MF SIP after 2-3 years.
        Right now I have some amount and want to make one time investment of 40k in Gold MF/ETF/ETS for long term say 10 years as the gold has less risk inspite of low return.I have done some R&D and pick “Fund Of Funds / SBI Gold Fund – Direct Plan – Growth” as one good option.
        I read some articles that its good to invest in “SBI ETF/ETS” rather than “SBI GOLD MF” as it will ultimately invest in SBI ETF/ETS.
        I dont have the demat account and not involved in stock.
        As the demat will be charged arround 500 PA + other charges; I am planning not to open the demat account and want to invest in SBI Gold Mutual Fund Direct(G) rather than SBI ETF/ETS.
        So should I go for SBI Gold Fund Direct(G) or SBI ETF/ETS.

        Thanks for your time and consideration,
        Rekha

      • Rahul

        Hi Manish,

        I am planning to start investment for 8-10 years in below funds :
        1.Quantum Long Term Equity fund with 3k SIP
        2.SBI Emerging Business Fund Direct with 3k SIP
        Please suggest me if these are good funds or not…… as both are not performing well from last few months but having good return for long term….

        Thanks,
        Rahul

  36. vivek chowdhry

    HI MANISH
    I am a regular reader of your blog.
    only by reading you blog i have made my investment portfolio.
    please see it and suggest.
    A] MUTUAL FUNDS:
    Birla SL dividend yeild (G) : 50000/- sip stopped , not redeem
    sundaram SMILE (G): 50000/- SIP stopped, not redeem
    dsp br equity (G): 150000/- SIP stopped not redeem
    dsp br top 100: 60000/- SIP stopped not redeem
    icici discovery (G): 5000/ mnth
    icici focus blue chip (G): 10000/mnth
    uti opportunity (G): 5000/mnth
    hdfc midcap opportunity(G): 5000/mnth
    so i m investing 25,000/- per month in these four MF thru SIP.
    B] PPF:
    50000/ YEAR
    C] INSURANCE
    1) AEGON RELIGARE TERM INSURANCE OF 50 LAKH WITH ACCIDENTAL RIDER OF 50 LAKH AND WAIVER OF PREMIUM RIDER
    2) ENDOWMENT POLICY FROM LIC, WHICH IS 9 YEARS OLD HAVING ANNUAL PREMIUM OF 32000/-
    D] HEALTH INSURANCE OF 10 LAKH
    FAMILY FLOATER PLAN FROM STAR HEALTH INSURANCE
    E] GOLD
    BUYING 10-20 GRAM GOLD PER YEAR STARTED A YEAR BACK.
    F] I HAVE A 2 BHK FLAT WHOSE LOAN I M REPAYING WITH AN EMI OF 28000/ MNTH SINCE 2 YEARS
    G] IHAVE A CAR LOAN WHOSE EMI IS 16500/MNTH FOR 7 YEARS STARTED THIS YEAR APRIL.
    MY SALARY IS 180000/MNTH POST TDS.
    CAN YOU PLEASE TELL ANY THING WRONG OR MISSING.
    THANK YOU FOR SUCH A NICE PLATFORM.

  37. 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 ?

  38. 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

  39. 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) .

  40. 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

  41. 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 !

  42. 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

  43. 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.

  44. 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.

  45. 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..

  46. 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

  47. 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.

  48. 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% ?

  49. 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 ?

  50. 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.

  51. 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?

  52. 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.

    • I only know that Axis long term equity is a good fund. The other two are not evaluated by me , hence I cant comment

      On debt side, its purely your wish if you want to add funds for stability or not. You can put some dynamic bond fund if thats the case

      Manish

Leave a Comment