Top Mutual Funds That Begun 2018 On A High Note   Jan 08, 2018


Mutual-Fund

In the first week of 2018, ended January 5th, the S&P BSE Sensex closed higher by 0.28%. The CNX Nifty 50, was up 0.27% over the same period. In comparison, the S&P BSE MidCap Index delivered a stronger performance, generating a return of 1.39%. Stocks present in the S&P BSE SmallCap Index drove the benchmark up 2.47% in the first week of January.


Given this performance, clearly equity mutual fund schemes investing in the midcap space were the clear beneficiaries and ended up among the top performing mutual funds for the week.

Among equity diversified mutual funds, SBI Small & Midcap Fund, Indiabulls Value Discovery Fund, SBI Magnum Comma Fund, L&T Emerging Businesses Fund and BOI AXA Equity Fund were the top performers with a return of 4.08%, 3.99%, 3.85%, 3.23% and 3.05% respectively.

Top Mutual Funds of The Week

Scheme Name 1 Week (%) 3 Months  (%) 6 Months  (%) 1 Year (%)
SBI Small & Midcap Fund 4.08 28.53 43.94 81.31
Indiabulls Value Discovery Fund 3.99 15.16 12.57 36.32
SBI Magnum Comma Fund 3.85 15.12 22.62 39.12
L&T Emerging Businesses Fund 3.23 18.12 23.21 66.61
BOI AXA Equity Fund 3.05 13.17 20.96 43.50
L&T India Spl. Situations Fund 2.89 13.19 15.20 43.74
IDFC Sterling Equity Fund 2.85 14.25 22.42 60.69
DSPBR Micro-Cap Fund 2.62 20.64 18.17 42.73
Edelweiss Mid and Small Cap Fund 2.52 19.50 24.05 51.66
Reliance Small Cap Fund 2.45 22.90 27.96 61.67
Reliance Growth Fund 2.42 15.25 18.82 43.84
HDFC Small Cap Fund 2.41 22.16 27.46 60.48
ICICI Pru Midcap Fund 2.41 15.19 20.65 43.65
Reliance Mid & Small Cap Fund 2.27 16.63 17.27 42.07
HSBC Midcap Equity Fund 2.23 20.02 26.33 58.98
Principal Growth Fund 2.20 13.87 19.04 48.73
IDBI Midcap Fund 2.17 10.52 15.23
L&T Midcap Fund 2.17 12.43 17.67 52.17
Invesco India Mid Cap Fund 2.06 15.98 19.52 43.04
Union Small and Midcap Fund 2.04 16.47 18.59 41.45
Data as on January 5, 2018. Returns are absolute
(Source: ACE MF, PersonalFN Research)

*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.

Category-wise Top Performing Equity Mutual Funds of the week

On taking a look at the category wise performance, BOI AXA Equity Fund, Reliance Growth Fund, LIC MF Equity Fund, IDFC Focused Equity Fund and Tata Equity P/E Fund were the top performers in the large-cap category with a return of 3.05%, 2.42%, 1.85%, 1.73% and 1.59%.

IDFC Sterling Equity Fund, Edelweiss Mid and Small Cap Fund, ICICI Pru Midcap Fund, Reliance Mid & Small Cap Fund and HSBC Midcap Equity Fund were the top performers in the mid-cap category with a return of 2.85%, 2.52%, 2.41%, 2.27 and 2.23% respectively.

Among multicap funds, Indiabulls Value Discovery Fund, SBI Magnum Comma Fund, L&T India Spl. Situations Fund, Principal Growth Fund and L&T India Value Fund were the top performers with returns like 3.99%, 3.85%, 2.89% and 2.20% respectively.

In the ELSS category, BOI AXA Tax Adv Fund, L&T Tax Advantage Fund, Principal Tax Savings Fund, IDFC Tax Advantage (ELSS) Fund and Principal Personal Tax saver Fund were the top performers, generating a return of 2.68%, 2.64%, 2.20%, 2.03% and 1.82% respectively.

In terms of valuations, the S&P BSE Sensex is commanding a price-to-earnings (P/E) valuation of 25 times. The P/E of the S&P BSE MidCap is around 48 times and that of the S&P BSE SmallCap index is 118 times. All the indices are trading over twice their long-term average P/E. 

On shifting the focus on sectoral performances, shares of metal, infrastructure and media companies were among the top gainers. The NIFTY METAL, NIFTY INFRA, NIFTY MEDIA, closed with gains 4.83%, 2.72% and 1.88% respectively. Mutual funds focused on these sectors gained traction during the week.

Among the sectoral indices that were laggards were the NIFTY PSU BANK, NIFTY IT and NIFTY AUTO index. Shares of these sectors returned -0.16%, -0.28% and -0.67% respectively. Mutual funds investing heavily in these sectors would have suffered.

Top Performing Balanced Funds of the week

Balanced funds too capitalised on the market rally in the first week of 2018. The top performing balanced funds for the week were BOI AXA Mid Cap Equity & Debt Fund, Principal Balanced Fund, Escorts Balanced Fund, L&T India Prudence Fund and LIC MF Balanced Fund. These schemes delivered a return of 2.79%, 1.79%, 1.76%, 1.58% and 1.56% respectively.

Going ahead, inflation data, December quarter earnings, factory output data etc., will set the tone and direction of the market.

How to find the best mutual fund schemes?

PersonalFN suggests that you must take a closer look at the performance of your mutual funds. Staying invested in funds with a proven track-record of consistent performance may pay off in the long run.

Thus, in the interest of your long-term financial wellbeing, it is best that you wisely structure and review your mutual fund portfolio. If you are unsure where to invest fresh investible surplus currently, to strike the correct risk-return tradeoff we recommend adopt a ‘core and satellite approach’ to investing. 

Constructing a portfolio with a stable core of long-term investments and a periphery of more specialist or shorter-term holdings can help to deliver the benefits of asset allocation and offer the potential to outperform the market. The satellite portfolio provides the opportunity to support the core by taking active calls determined by extensive mutual fund research.

So, PersonalFN offers you a great opportunity, if you’re looking for “high investment gains at relatively moderate risk”. Based on the ‘core and satellite’ approach to investing, here’s PersonalFN’s latest exclusive report: The Strategic Funds Portfolio For 2025. In this report, PersonalFN will provide you with a readymade portfolio of its top recommended equity mutual funds schemes for 2025 that have the ability to generate lucrative long-term returns. We highly recommend you to opt for The Strategic Funds Portfolio For 2025.

DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014
 

About the Company including business activity 

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989. 

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

'PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services. 

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Disciplinary history

There are no outstanding litigations against the Company, it subsidiaries and its Directors. 

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Details of associates

  1. Money Simplified Services Private Limited;
  2. PersonalFN Insurance Services India Private Limited ;
  3. Equitymaster Agora Research Private Limited;
  4. Common Sense Living Private Limited;
  5. Quantum Advisors Private Limited;
  6. Quantum Asset Management Company Private Limited;
  7. HelpYourNGO Private Limited;
  8. HelpYourNGO Foundation;
  9. Natural Streets for Performing Arts Foundation;
  10. Primary Real Estate Advisors Private Limited;
  11. Rahul Goel;
  12. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest

  1. Neither QIS, it’s Associates, Research Analyst or his/her relative have any financial interest in the subject Company , except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF.
  2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
  3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS (PersonalFN) is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS (PersonalFN) is also at arm's length and as per prevailing market practices

Disclosure with regard to receipt of Compensation
 

  1. Neither QIS nor it's Associates have any compensation from the subject Company in the past twelve months.
  2. Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company in the past twelve months.
  3. Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company in the past twelve months.
  4. Neither QIS nor it’s Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months except from Axis Bank Limited under a service agreement.
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  1. The Research Analyst has not served as an officer, director or employee of the subject Company.
  2. QIS or the Research Analyst has not been engaged in market making activity for the subject Company.

Subject Company means Mutual Fund Schemes

Quantum Information Services Private Limited CIN: U65990MH1989PTC054667 Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 16 Jolly Maker Chambers II, Nariman Point, Mumbai 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

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