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Best Mutual Funds House [Graph]

by Manish Chauhan · 144 comments

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 ?



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{ 144 comments… read them below or add one }

1 ASHAL JAUHARI July 2, 2012 at 10:24 am

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

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2 Manish Chauhan July 2, 2012 at 3:30 pm

Yes agree .. Just a drop in stars ranking does not become a basis to revome it from portfolio !

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3 Srinivas July 2, 2012 at 10:25 am

Thanks for this article. Clearly HDFC is the best fund house

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4 Manish Chauhan July 2, 2012 at 3:29 pm

Which funds you have bought ?

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5 Srinivas July 2, 2012 at 9:00 pm

HDFC top 200 (G) and HDFC Prudence (G)

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6 Vasanth Kumar J July 2, 2012 at 10:42 am

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.

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7 Manish Chauhan July 2, 2012 at 3:27 pm

Vasanth

Thanks for sharing your views and good to hear that you understood the importance of term plan, which one you bought ?

My next book ! – SURPRISE !

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8 Vasanth Kumar J July 2, 2012 at 3:50 pm

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.

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9 Vasanth Kumar J July 2, 2012 at 3:51 pm

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 !!

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10 Raghu July 2, 2012 at 11:03 am

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

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11 Manish Chauhan July 2, 2012 at 3:23 pm

Note that this study does not tell the returns potential , all it says is how of schemes outperformed their benchmarks

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12 Venkat July 2, 2012 at 11:05 am

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.

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13 Manish Chauhan July 2, 2012 at 3:22 pm

Thanks for sharing your views on this topic

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14 Jay July 2, 2012 at 4:10 pm

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.

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15 Venkat July 2, 2012 at 4:36 pm

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.

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16 Jay July 2, 2012 at 5:59 pm

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.

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17 Venkat July 2, 2012 at 11:48 pm

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.

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18 Satya July 2, 2012 at 11:30 am

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 …

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19 Manish Chauhan July 2, 2012 at 3:19 pm

Good to hear that . Which all MF do you have ?

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20 Satya July 2, 2012 at 6:51 pm

I have it all in HDFC Equity … I wanted to explore Top 200, but felt it was same as HDFC Equity …. HDFC Equity is a great fund that has given me consistent returns since Aug 2004

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21 Manish Chauhan July 4, 2012 at 9:34 pm

Yes HDFC equity is as good as any other fund in India :)

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22 Dominic July 2, 2012 at 11:56 am

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.

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23 Manish Chauhan July 2, 2012 at 3:18 pm

Which funds do you have ?

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24 Dominic July 2, 2012 at 5:08 pm

Fidelity Equity, HDFC T200 and HDFC Prudence. Also I have one FMP from HDFC stable.

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25 Rahul Srivastava July 2, 2012 at 12:26 pm

Thank you for such informative & eye-opening analysis.

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26 Manish Chauhan July 2, 2012 at 3:16 pm

Welcome Rahul

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27 TS Ashok July 2, 2012 at 12:39 pm

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

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28 Manish Chauhan July 2, 2012 at 3:15 pm

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

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29 Jay July 2, 2012 at 3:58 pm

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.

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30 Manish Chauhan July 5, 2012 at 10:53 am

Jay

I dont see people who think like that , how many people you came across who think like that ?

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31 Jay July 5, 2012 at 3:15 pm

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.

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32 Manish Chauhan July 6, 2012 at 7:49 pm

So what is the point you are making ?

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33 TS Ashok July 3, 2012 at 3:18 pm

Oh. Yes. thanks for correcting me..

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34 Ms Hyacinth July 2, 2012 at 1:30 pm

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.

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35 Manish Chauhan July 2, 2012 at 3:15 pm

Can you ask your question point wise ?

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36 syam July 2, 2012 at 2:30 pm

Even though hdfc is performing good it is better to diversify rather than investing in single amc

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37 Manish Chauhan July 2, 2012 at 3:13 pm

Obviosuly , the conclusion is not that you should just invest in HDFC , even some AMC;s which are not that good have some really good funds .

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38 KRANTIVIR RAJPUT July 2, 2012 at 3:33 pm

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.

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39 Manish Chauhan July 5, 2012 at 10:55 am

Thanks for your update !

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40 Jeetu July 2, 2012 at 5:12 pm

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

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41 Manish Chauhan July 5, 2012 at 10:47 am

Thanks Jeetu

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42 geo thomas July 2, 2012 at 6:23 pm

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.

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43 Manish Chauhan July 5, 2012 at 10:40 am

Geo

Truely I dont have any outlook on any sector, hence this is better a discussion topic at our forum : http://www.jagoinvestor.com/forum

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44 Siva Prasad July 2, 2012 at 6:49 pm

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

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45 Manish Chauhan July 4, 2012 at 9:50 pm

Thanks for sharing your views

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46 Avinash Limaye July 2, 2012 at 7:52 pm

I am a sinior citizen. Pls. let me know what it is ? and how it works.

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47 Manish Chauhan July 4, 2012 at 9:33 pm

Not sure of your question , what are you asking exactly ?

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48 Raj July 2, 2012 at 8:00 pm

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.

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49 Manish Chauhan July 4, 2012 at 9:33 pm

This is more suitable question for forum http://www.jagoinvestor.com/forum

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50 ssdginc July 2, 2012 at 8:20 pm

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.

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51 Manish Chauhan July 4, 2012 at 9:31 pm

Yes agree on that point .

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52 koguty July 2, 2012 at 8:20 pm

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.

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53 Dominic July 3, 2012 at 11:23 am

I think you are wrongly reading the chart of LIC and JM.

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54 Mansoor July 3, 2012 at 8:07 pm

@koguty
How do you give top marks to LIC and JM? Both are duds. Please check the charts again.

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55 koguty July 4, 2012 at 10:43 am

** 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?

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56 Raghu July 2, 2012 at 11:05 pm

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

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57 Manish Chauhan July 4, 2012 at 9:17 pm

Raghu

You can take mutual fund suggestions at our forum : http://www.jagoinvestor.com/forum

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58 Naina July 2, 2012 at 11:42 pm

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……

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59 Manish Chauhan July 4, 2012 at 9:16 pm

Naina

Can you give us more information on that insider trading charges ? Was it HDFC AMC overall or a specific Fund manager !

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60 Dr M Chandrashekhar July 23, 2012 at 9:12 am

Hi Manish,

Sorry to reply late. Pl . refer to TOI dt 18 June 2010. Nilesh Kapadia, Equity Dealer in HDFC ( since 2000)+ 03 other associates from outside were found to have caused a loss of Rs 2.4 crores thru Insider Trading .

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61 Anrand July 23, 2012 at 11:23 am

Have been a fan of HDFC Mutual Fund and continue to invest a significant portion of my MF portfolio with them. But this “front running” scandal is clearly a blot on their track record. Was actually surprised to this come up so late in the thread. Pasting below some news links on this issue – so that folks can make up their own minds as to how serious it is wrt investing with this house:
http://www.dnaindia.com/money/report_sebi-more-front-running-at-hdfc-mutual-fund_1580696
http://timesofindia.indiatimes.com/articleshow/6060668.cms
http://www.business-standard.com/451347/

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62 Manish Chauhan July 25, 2012 at 6:52 am

ok , will have a look at it !

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63 Sougato Pal July 3, 2012 at 8:44 am

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

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64 Manish Chauhan July 4, 2012 at 9:10 pm

Sougato

Different mutual funds from AMC can be good, this report is at AMC level only

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65 DINESH July 3, 2012 at 1:38 pm

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

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66 Manish Chauhan July 4, 2012 at 9:05 pm

Look at your specific fund, dont judge at AMC level :)

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67 varghese July 3, 2012 at 6:07 pm

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,

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68 Manish Chauhan July 4, 2012 at 11:07 am

Varghese

It does not conclude that everyone starts investing in HDFC funds, because even other fund houses schemes are great , this report is more at AMC level

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69 Mansoor July 3, 2012 at 8:04 pm

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.

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70 Manish Chauhan July 4, 2012 at 11:04 am

Thanks for your views . Even though some AMC’s are not shown as good, their some funds can be very very good !

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71 Mayank Arora July 4, 2012 at 5:22 pm

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.

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72 Manish Chauhan July 4, 2012 at 8:49 pm

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

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73 Mayank Arora July 8, 2012 at 5:16 am

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

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74 Manish Chauhan July 9, 2012 at 9:02 am

Thanks Mayank !

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75 justgrowmymoney July 11, 2012 at 12:22 pm

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.

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76 Anrand July 23, 2012 at 11:34 am

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.

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77 Sachin July 9, 2012 at 2:04 pm

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

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78 Manish Chauhan July 9, 2012 at 6:41 pm

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 .

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79 Sachin July 10, 2012 at 1:44 pm

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

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80 Manish Chauhan July 10, 2012 at 7:19 pm

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

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81 Manish Varshney July 11, 2012 at 11:36 am

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.

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82 Manish Chauhan July 12, 2012 at 7:58 am

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

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83 Manish Varshney July 12, 2012 at 12:49 pm

Thanks for the reply Manish….

It means after having a decent Units, i can close the SIP and can redeem the Units when the NAVs are Up…

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84 Manish Chauhan July 13, 2012 at 11:05 am

you can redeem it anytime, no restrictions or conditions . Just that it should not be locked in like in ELSS

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85 justgrowmymoney July 11, 2012 at 12:14 pm

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.

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86 justgrowmymoney July 11, 2012 at 12:35 pm

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!

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87 Manish Chauhan July 12, 2012 at 7:52 am

HEy thats a great information , we didnt knew this . What is the source of this information ?

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88 Ranga July 12, 2012 at 3:42 pm

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..

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89 Manish Chauhan July 13, 2012 at 11:00 am
90 Bishwanath Sanfui July 12, 2012 at 6:24 pm

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

Regards,
Bishwanath

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91 Bishwanath Sanfui July 12, 2012 at 6:31 pm

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

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92 Manish Chauhan July 13, 2012 at 10:54 am

Dont take it

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93 Bishwanath Sanfui July 13, 2012 at 1:42 pm

Pls. suggest some MF which will give best return on Rs. 2000 per month in long term.

Thanks in advance.

Regards,
Bishwanath

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94 Manish Chauhan July 14, 2012 at 4:34 pm

Do you think there can be one mutual fund like that ?

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95 Mayank Arora July 12, 2012 at 7:37 pm

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

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96 Manish Chauhan July 13, 2012 at 10:52 am

Mayank

I dont think that should be a very serious parameter to look at !

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97 Mayank Arora July 13, 2012 at 6:32 pm

I agree with you.

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98 Nitin sharma July 19, 2012 at 12:10 am

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

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99 Manish Chauhan July 20, 2012 at 1:25 pm

I am not sure on this , ideally it should happen automatically

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100 Jeebu August 6, 2012 at 10:57 pm

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…

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101 Manish Chauhan August 7, 2012 at 7:15 am

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 .

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102 Anand August 7, 2012 at 3:51 pm

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

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103 Sai Krishna November 27, 2012 at 2:16 pm

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

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104 Manish Chauhan November 30, 2012 at 1:00 pm

Nice ,. you are doing quite well … I would suggest first create some financial goals clearly and then try to align them !

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105 Sandeep purohit January 23, 2013 at 10:37 pm

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) ?

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106 Manish Chauhan January 24, 2013 at 1:57 pm

Definately .. even though its a small fund house .. still the fund management is great .. especially its Quantum Long Term Equity Fund

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107 K C Rana February 8, 2013 at 3:15 pm

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

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108 Manish Chauhan February 11, 2013 at 7:54 pm

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

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109 K C Rana February 15, 2013 at 9:56 pm

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

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110 Manish Chauhan February 18, 2013 at 1:27 pm

Its a goodone

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111 K C Rana February 20, 2013 at 8:15 pm

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

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112 Manish Chauhan February 21, 2013 at 8:40 am

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

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113 K C Rana February 21, 2013 at 1:41 pm

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.

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114 Manish Chauhan February 25, 2013 at 8:26 pm

I dont think you should make these kind of assumptions … Budget is a big news and markets will react to that , it can be good or bad, you never know .

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115 K C Rana June 14, 2013 at 11:40 pm

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

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116 Manish Chauhan June 22, 2013 at 10:07 am

Looks good , go ahead

117 K C Rana March 7, 2013 at 1:25 pm

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

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118 Manish Chauhan March 8, 2013 at 7:34 pm

I dont think they are of much help ! …

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119 Rekha March 28, 2013 at 7:16 pm

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

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120 Manish Chauhan April 3, 2013 at 12:15 pm

You it would make sense to invest in gold funds at the moment

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121 Rekha April 3, 2013 at 3:58 pm

Thanks a lot….

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122 Rekha April 12, 2013 at 8:43 pm

As the Gold price is going down day by day……Can you please suggest any other option for investment.I am a homemaker and having only 40k amount to invest for long term.

Thanks
rekha

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123 Manish Chauhan April 19, 2013 at 12:25 pm

Silver is another option , but its down again !

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124 Rahul April 10, 2013 at 12:14 pm

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

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125 Manish Chauhan April 12, 2013 at 11:33 am

Yes these are good funds .. go ahead

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126 vivek chowdhry February 24, 2013 at 12:14 am

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.

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127 Manish Chauhan February 25, 2013 at 5:06 pm

Hi Vivek

Its appropriate to discuss the portfolio on our forum http://www.jagoinvestor.com/forum/

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128 Mahesh Vidhate March 19, 2013 at 5:04 am

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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129 Manish Chauhan March 19, 2013 at 10:18 am

Thats a good fund to start with . go ahead

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130 Chandan April 15, 2013 at 1:09 pm

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

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131 Chandan April 16, 2013 at 5:43 pm

Further Fall :(
Should sell at 5k loss or wait for 7-8 years for revovery….?

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132 Manish Chauhan April 19, 2013 at 11:07 am

I would have SOLD !

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133 Manish Chauhan April 19, 2013 at 11:44 am

The risk is always there, you cant deny it . If you feel gold prices will not rise in future, better redeem it then

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134 Chandan April 19, 2013 at 4:34 pm

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

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135 Chandan May 31, 2013 at 2:33 pm

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

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136 Manish Chauhan May 31, 2013 at 3:58 pm

How much time it has passed since you invested , Mutual funds are a long term investments and can not be judged so fast

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137 pradyush81 April 20, 2013 at 3:17 am

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) .

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138 Manish Chauhan April 26, 2013 at 2:14 pm

Yea . .that would be a better choice

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139 Nandan August 14, 2013 at 7:09 pm

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

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140 Manish Chauhan August 21, 2013 at 2:22 pm

At any point of time, the compounding has already happened and you sell your mutual funds at that worth .

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141 astrosunil December 30, 2013 at 7:28 pm

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

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142 Manish Chauhan January 4, 2014 at 11:53 am

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 !

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143 Rathore Vipin March 10, 2014 at 5:48 am

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.

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144 Manish Chauhan March 12, 2014 at 8:25 am

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

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