Top 3 mutual funds to invest this DiwaliDiwali marks the triumph of good over evil. It is also the start of something new. In this festival of lights, you would have come across many money-making ideas. Most brokerages and market experts want you to buy a list of 10-20 stocks. We at RupeeIQ believe that when you have access to the country’s best fund managers, you should buy funds. With decades of experience and the skill to navigate through good and bad times, there are experts and well-managed funds which are the best bet for your money today. Instead of taking specific stock bets and worrying about their movements, it is much more convenient to select some good equity funds and wait for the products to make money for you. (Read the Part I of our article on portfolio allocation in Samvat 2075).

Value with a twist

Aditya Birla Sun Life Pure Value Fund – This scheme over the years has consistently been able to hit the ball out of the park with regularity. The fund’s focus on value (we are not just talking about buying cheap price/earnings stocks etc.) has paid rich dividends. The fund boasts of a 24% CAGR return in last five years, which is double that of Nifty 50 total return index. Among 13 peers too, this fund is the number 1. The fund-house runs this scheme as a sector agnostic fund. It is not shy of exploiting opportunities in different styles of market caps. By looking at real value instead of obsessing about optical cheapness, Aditya Birla Sun Life Pure Value Fund has been successfully able to analyse various businesses and unlock their true value. It is surprising that despite excluding growth stocks from the investment universe, the fund has been able to deliver stellar returns. In the last 10 years, the fund has delivered 21% CAGR, beating the category average by four percentage points.

Aditya Birla Sun Life Pure Value
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Fund -23.88 2.66 -11.05 -20.13 10.56 23.71 21.23
NIFTY 50 Total Return 1.31 2.14 -7.08 2.06 11.23 12.36 14.76
Category -10.51 3.01 -8.2 -7.29 10.13 17.79 18.44
Rank within Category 14 10 13 14 7 1 3
Number of funds in category 14 16 15 14 14 13 11
As on Nov 05, 2018

Blue-eyed boy

Axis Bluechip Fund – The 8-year-old has built a great reputation for itself, even though it is not very old. The fund has been a dependable out-performer. One of the reasons for Axis Bluechip Fund to be a good bet for your money is its superior risk-adjusted return profile. The near obsession with quality and focus on a compact portfolio ensures that the fund doesn’t get affected that much in market downturns, while it is able to smartly gain during upswings. The fund-house runs this fund as a high-conviction scheme, whereby it takes concentrated bets on stocks it is very bullish on. This strategy ensures outsized gains. It has comfortably beaten many of its peers in the last three and five years. We believe this large cap fund is a good pick given that large caps are an all-weather theme. Markets may swing to different tunes, but large cap stocks always stand tall.

Axis Bluechip Fund
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Fund 0.83 1.87 -10.37 3.67 10.9 13.71
NIFTY 50 Total Return 1.31 2.14 -7.08 2.06 11.23 12.36
Category -1.92 2.56 -7.31 -0.54 9.97 12.52
Rank within Category 37 70 89 18 26 12
Number of funds in category 91 95 93 89 70 62
As on Nov 05, 2018

Midcap master

HDFC Mid-Cap Opportunities Fund – This Rs 20,000 crore fund can put many large cap companies to shame. This 11-year old scheme is actually an expert mid cap fund. The fund has maintained reasonable diversification and continues to take positions in stocks ahead of others. While mid cap and small cap fund returns have been stunted by the recent correction, the scheme continues to get the runs required to maintain its average. Selecting good mid cap stocks is all about choosing the right management. The fund has a good bias towards value, which allows it to pick up shares in businesses when such entities are going through a temporary rough patch. Known for a buy-and-hold strategy, the fund holds stocks for an extended time frame and has consequently become a good compounding machine. Unlike some fund managers, the fund doesn’t take aggressive cash calls and that has helped it avoid periods where a large amount of cash is a drag. With a 5 and 10 year CAGR of above 22% each, this is a fund one can easily trust with their money.

HDFC Midcap Opportunities
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Fund -14.67 3.61 -11.52 -10.12 11.53 22.19 22.76
NIFTY Midcap 100 TRI -17.11 6.56 -8.99 -11.29 11.16 18.92 18.07
Category -15.37 4.42 -9.6 -10.15 9.27 21.24 20.19
Rank within Category 9 18 20 9 3 6 2
Number of funds in category 22 23 23 22 20 18 16
As on Nov 05, 2018
Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. He can be contacted on