Rising crude oil prices continue to be a concern. The Indian rupee traded close to its all-time low of Rs70/$. Traders suggest that the rupee may continue to spiral to record lows.

The S&P BSE Sensex & CNX Nifty 50 closed the week up 0.22% and 0.08% respectively. In comparison, the S&P BSE MidCap Index closed flat with a negligible gain of 0.05%. The S&P BSE SmallCap Index declined by 1.01% over the week. Over the past month, the mid-cap and small-cap indices have lost nearly over 5% each.

Given this performance of the stock market, most equity mutual fund schemes closed in the red. Funds with an exposure to IT stocks and certain PSU Bank stocks were among the top-performing mutual funds for the week. Those mutual funds that invested aggressively in energy stocks or small-cap stocks would have lagged behind.

In terms of valuations, the price-to-earnings (P/E) multiple of the S&P BSE Sensex is just under 23 times. The P/E of the S&P BSE MidCap is now at 33x and that of the S&P BSE SmallCap index has fallen to around 74 times on the drop in prices.

Despite the easing valuations, the indices continue to trade over twice their long-term average P/E. Hence, could come under pressure with the adverse news.

On shifting the focus on sectoral performances, shares of PSU Banks, IT, and Bank sectors ranked at the top of the list. The Nifty PSU Bank, Nifty IT, and Nifty Bank indices, returned 11%, 2.25%, and 1.54% respectively. Mutual funds investing in these sectors would have been able to deliver good returns to investors.

Among the sectoral indices that plunged the most were the Nifty Realty, Nifty Energy and Nifty FMCG index. Shares of these sectors fell 2.39%, 1.54%, and 0.89% respectively. Mutual funds investing heavily in these sectors would have trailed behind the others.

Among equity-diversified mutual funds, HDFC Equity Fund, HDFC Top 100 Fund, SBI Large & Midcap Fund, Franklin India High Growth Cos Fund, and UTI Bluechip Flexicap Fund topped the list with returns of 1.79%, 1.55%, 1.52%, 1.49%, and 1.46% respectively.

Top Mutual Funds of The Week

Scheme Name	1 Week (%)	3 Months  (%)	6 Months  (%)	1 Year (%)
HDFC Equity Fund	1.79	-3.24	-5.65	7.40
HDFC Top 100 Fund	1.55	-2.74	-4.76	6.16
SBI Large & Midcap Fund	1.52	-1.16	-1.96	12.68
Franklin India High Growth Cos Fund	1.49	-3.44	-6.72	5.30
UTI Bluechip Flexicap Fund	1.46	6.12	10.51	23.69
ICICI Pru Focused Bluechip Equity Fund	1.16	0.28	-0.10	12.95
Franklin India Bluechip Fund	1.11	-1.42	-2.56	5.77
Reliance Focused Large Cap Fund	1.05	-5.47	0.88	8.51
ICICI Pru Select Large Cap Fund	1.00	-2.00	-2.47	4.95
Tata India Consumer Fund	0.99	6.30	4.91	34.40
HDFC Growth Opp Fund Fund	0.98	-0.73	-3.33	5.60
SBI Magnum Equity ESG Fund	0.93	1.81	1.92	10.43
Franklin India Prima Plus Fund	0.91	-1.29	-2.10	8.22
Reliance Focused Equity Fund	0.86	-3.51	-5.18	10.28
LIC MF Growth Fund	0.79	1.92	1.06	8.29
ICICI Pru Top 100 Fund	0.77	-2.18	-4.33	6.30
Principal Multi Cap Growth Fund	0.69	-1.97	-3.27	13.95
ICICI Pru Dynamic Plan	0.69	-2.06	-1.63	10.24
Sundaram Smart NIFTY 100 Eq Weight Fund	0.61	-2.51	-3.70	8.32
IIFL Focused Equity Fund	0.59	0.43	-5.38	9.83

Data as on May 25, 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 of future returns. The percentage returns shown are only for indicative purposes.

Category-wise Top Performing Equity Mutual Funds of the week

On having a look at the category wise performance ICICI Pru Focused Bluechip Equity Fund, Franklin India Bluechip Fund, Reliance Focused Large Cap Fund, ICICI Pru Select Large Cap Fund, and HDFC Growth Opp Fund were the top large cap funds with a return of 1.16%, 1.11%, 1.05%, 1.00%, and 0.98%.

HDFC Small Cap Fund, BNP Paribas Mid Cap Fund, DHFL Pramerica Midcap Opp Fund, IDFC Sterling Equity Fund, and Mirae Asset Emerging Bluechip were the top mid cap funds & top small cap funds with a return of 0.13%, 0.06%, 0.05%, 0.04%, and 0.04% respectively.

Among multicap funds, HDFC Equity Fund , HDFC Top 100 Fund, SBI Large & Midcap Fund, Franklin India High Growth Cos Fund, and UTI Bluechip Flexicap Fund were the top multicap funds with returns 1.79%, 1.55%, 1.52%, 1.49%, and 1.46% respectively.

Top Performing ELSSs of the week

In the ELSS category, SBI Magnum TaxGain'93, Principal Personal Tax saver Fund, HDFC TaxSaver, Principal Tax Savings Fund, and ICICI Pru LT Equity Fund (Tax Saving) were the top ELSS funds, generating a return of 1.11%, 0.87%, 0.80%, 0.73%, and 0.63% 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 HDFC Prudence Fund, Principal Balanced Fund, ICICI Pru Equity & Debt Fund, SBI Equity Hybrid Fund, and UTI Hybrid Equity Fund.  These schemes delivered a return of 1.63%, 0.73%, 0.70%, 0.69%, and 0.41% 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.

Must read

Are These Top Large Cap Mutual Funds Worth Your Investment in 2018?

Editor's note: PersonalFN has a long track record of offering unbiased mutual fund research services. It analyses thousands of data points to shortlist schemes and also applies a whole host of qualitative parameters to select only a handful schemes for your portfolio. Want to try PersonalFN’s Premium Mutual Fund Research service ‘FundSelect’? Every month, our FundSelect service will provide you with an insightful and practical guidance on which mutual fund schemes to buy, hold or sell, which will assist in creating the ultimate portfolio that has the potential to beat the market. And there’s more great news! FundSelect is turning FIFTEEN. And on this auspicious 15th anniversary of FundSelect, we intend to make it “ultra-special” for you. How? Well, how about getting 1 Year of access to FundSelect virtually Free? And if you wish, perhaps even MORE... Check out the exciting offers that can be availed on subscriptions to FundSelect here. Go ahead and subscribe to PersonalFN’s FundSelect NOW!

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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.

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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;
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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

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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: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

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