Given this performance of the stock market, all equity mutual fund schemes ended in the red. IT and FMCG stocks were able to restrain the fall. Such schemes investing in this space were among the top performing mutual funds for the week. Those mutual funds that have aggressively invested in PSU Banks and Pharma sectors would have suffered the most.

In terms of valuations, the price-to-earnings (P/E) multiple of the S&P BSE Sensex hovers around 23 times. The P/E of the S&P BSE MidCap is lingers under 40x and that of the S&P BSE SmallCap index remains above 100 times.

All the indices are trading over twice their long-term average P/E. Hence, could come under pressure with adverse news.

On shifting the focus on sectoral performances, shares of IT, FMCG and Auto sectors managed to restrict the losses. The Nifty IT, Nifty FMCG and Nifty Auto indices, reported losses of 0.17%, 1.78% and 2.32% respectively. Mutual funds investing in these sectors would have been able to lower the losses.

Among the sectoral indices that declined, the most were the Nifty Metal, Nifty PSU Bank and Nifty Pharma index. Shares of these sectors fell 6.89%, 5.41% and 4.51% respectively.  Banks came under pressure once again, as PSU banks extended their losses. Mutual funds investing heavily in these sectors would have suffered.

Among equity-diversified mutual funds, Parag Parikh Long Term Equity Fund, Axis Multicap Fund, Sundaram Equity Plus, Invesco India Dynamic Equity Fund and UTI India LifeStyle Fund topped the list with returns of -0.85%, -1%, -1.16%, -1.24%, and -1.25% respectively.

Top Mutual Funds of The Week

Scheme Name	1 Week (%)	3 Months  (%)	6 Months  (%)	1 Year (%)
Parag Parikh Long Term Equity Fund	-0.85	0.48	7.13	20.27
Axis Multicap Fund	-1.00	-1.59
Sundaram Equity Plus	-1.16	1.20	2.61	11.01
Invesco India Dynamic Equity Fund	-1.24	-1.90	-0.99	15.86
UTI India LifeStyle Fund	-1.25	-1.75	3.93	15.13
Canara Rob F.O.R.C.E. Fund	-1.26	-1.97	0.14	18.32
Taurus Ethical Fund	-1.37	1.03	8.20	20.09
Axis Midcap Fund	-1.38	-1.44	4.72	25.71
Sundaram Select Focus	-1.38	-1.35	1.94	20.21
UTI Equity Fund	-1.39	0.93	3.88	15.59
UTI Bluechip Flexicap Fund	-1.40	0.63	5.12	21.27
Invesco India Business Leaders Fund	-1.41	-0.23	3.66	16.11
ICICI Pru Multicap Fund	-1.48	-0.62	5.03	12.60
Axis Equity Fund	-1.49	-0.93	1.62	22.50
Taurus Discovery Fund	-1.59	0.20	5.44	26.94
ICICI Pru Dynamic Plan	-1.59	-1.42	6.14	13.13
Escorts Leading Sectors Fund	-1.62	-2.40	5.27	16.38
Sahara R.E.A.L Fund	-1.64	-0.97	0.41	22.57
Tata Ethical Fund	-1.66	-2.38	5.37	19.24
Tata India Consumer Fund	-1.67	-3.24	4.81	33.84

Data as on March 10, 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  – Sundaram Equity Plus, Invesco India Dynamic Equity Fund, Canara Robeco F.O.R.C.E. Fund, Sundaram Select Focus and UTI Equity Fund were the top large cap funds with a return of -1.16%, -1.24%, -1.26%, -1.38%, and -1.39%.

Axis Midcap Fund, Taurus Discovery Fund, HDFC Mid-Cap Opportunities Fund, DSPBR Small & Mid Cap Fund, and Franklin India Prima Fund were the top mid cap funds & small cap funds with a return of -1.38%, -1.59%, -1.76%, -1.78%, -1.79% respectively.

Among multicap funds, Parag Parikh Long Term Equity Fund, Axis Multicap Fund, UTI India LifeStyle Fund, Taurus Ethical Fund and UTI Bluechip Flexicap Fund were the top multicap funds with returns -0.85%, -1%, -1.25%, -1.37%, and -1.40% respectively.

Top Performing ELSSs of the week

In the ELSS category, MOSt Focused Long Term Fund, Taurus Tax Shield Fund, Axis Long Term Equity Fund, ICICI Prudential Long Term Equity Fund and Aditya Birla SL Tax Relief '96 were the top ELSS funds, generating a return of -1.39%, -1.40%, -1.51%, -1.62%, and -1.73% respectively.

Top Performing Balanced Funds of the week

Balanced funds were able to deliver restrict losses better with the debt component, but were not able to stay out of the red. The top balanced funds for the week Tata Regular Saving Equity Fund, Principal Smart Equity Fund, L&T Dynamic Equity Fund, ICICI Prudential Balanced Advantage Fund and MOSt Focused Dynamic Equity Fund. These schemes delivered a return -0.46%, -0.51%, -0.60%, -0.60% and -0.69% respectively.

How to invest in 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.

While we acknowledge that, even the best systems and processes cannot predict the top mutual funds of the future, as an investor, you need to pick the right and suitable funds to meet your financial goals.

Hence, a process that combines both quantitative and qualitative factors has a good chance of picking funds that can deliver decent market-beating returns. The quantitative factors will cover the fund’s performance across multiple periods and market cycles, as well as the fund’s ability to manage risk among other factors.

The qualitative factors will take into account the fund manager’s experience, the performance of the fund house across multiple schemes, as well as the quality of assets in the portfolio, to name a few. Thus, when analysing a fund across both quantitative and qualitative parameters, you will be able to pick a fund that has a promising future.

PersonalFN adopts such a process to shortlist the potentially best mutual funds for its subscribers.

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. 

In times of volatility, a Systematic Investment Plan (SIP) would undoubtedly be a prudent route as compared to investing your corpus as a lumpsum. When investing in equity, it is important to keep a long-term investment horizon of five to seven years or more, even if you are investing via a SIP.

Editor's note: If you are worried about the unpredictability of the equity markets and confused about which mutual funds to invest in this year, don’t worry. PersonalFN’s latest exclusive report: Top 5 Equity Funds To Invest In 2018 has been created keeping the current Investment Scenario in mind. This exclusive report is already gaining popularity among our readers. So do not miss it for anything. Subscribe now!

 

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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. 

Quantum Information Services Private Limited (QIS) is registered as Investment Adviser under SEBI (Investment Adviser) Regulations, 2013 and having Registration No.: INA000000680. In terms of second proviso to Regulation 3 (1) of SEBI (Research Analysts) Regulations, 2014 the Company is not required to obtain Certificate of registration from SEBI.
Disciplinary history

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

and condition on which its offer research report. For the terms and condition for research report click here.
Details of associates

1. Money Simplified Services Private Limited;
2. PersonalFN Insurance Services 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.
5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report

General disclosure

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

SEBI-registered Investment Adviser. Registration No. INA000000680, SEBI (Investment Advisers) Regulation, 2013

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