The S&P BSE Sensex & CNX Nifty 50 closed the week up 0.61% and 0.67% respectively. In comparison, the S&P BSE MidCap Index closed higher with a gain of 0.33%. The S&P BSE SmallCap Index declined by 0.54% over the week. Over the past month, small-cap indices have lost over 7% each.

Given this performance of the stock market, most large-cap oriented equity mutual fund schemes closed in the black. Funds with an exposure to Pharma stocks and certain PSU Bank stocks were among the top-performing mutual funds for the week. Those mutual funds that invested aggressively in Infrastructure 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 34x and that of the S&P BSE SmallCap index has again risen to 93 times on poor earnings.

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 Pharma, PSU Bank, and Energy sectors ranked at the top of the list. The Nifty Pharma, Nifty PSU Bank, and Nifty Energy indices, returned 4.76%, 2.76%, and 2.70% 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 Infra, Nifty Bank and Nifty PSE index. Shares of these sectors fell 1.62%, 0.91%, and 0.11% respectively. Mutual funds investing heavily in these sectors would have trailed behind the others.

Among equity-diversified mutual funds, Reliance Vision Fund, UTI Bluechip Flexicap Fund, Reliance Large Cap Fund, Taurus Largecap Equity Fund, and Aditya Birla SL Midcap Fund topped the list with returns of 1.75%, 1.46%, 1.44%, 1.16%, and 1.10% respectively.

Top Mutual Funds of The Week

Scheme Name	1 Week (%)	3 Months  (%)	6 Months  (%)	1 Year (%)
Reliance Vision Fund	1.75	-3.09	-11.54	1.14
UTI Bluechip Flexicap Fund	1.46	6.12	10.51	23.69
Reliance Large Cap Fund	1.44	2.08	-0.66	9.69
Taurus Largecap Equity Fund	1.16	1.91	-2.67	1.20
Aditya Birla SL Midcap Fund	1.10	0.06	-4.94	5.10
Baroda Pioneer Large Cap Fund	1.10	4.62	0.07	3.06
Quantum Long Term Equity Value Fund	1.07	2.24	0.88	5.47
Reliance Focused Large Cap Fund	1.05	-5.47	0.88	8.51
DHFL Pramerica Large Cap Fund	1.02	3.11	1.19	6.08
Kotak Equity Opp Fund	0.98	2.00	-1.44	5.53
UTI Core Equity Fund	0.97	1.47	-0.74	7.28
Parag Parikh Long Term Equity Fund	0.91	2.70	3.14	15.61
Taurus Starshare (Multi Cap) Fund	0.90	-0.66	-3.49	2.49
UTI Mid Cap Fund	0.89	0.27	-3.19	8.66
Mirae Asset India Equity Fund	0.89	3.35	0.27	10.61
IIFL Focused Equity Fund	0.89	5.47	-1.89	8.47
Invesco India Midcap Fund	0.88	3.41	-2.84	10.65
Kotak Standard Multicap Fund	0.88	3.73	0.88	7.62
Invesco India Growth Opp Fund	0.85	4.34	3.69	17.07
UTI Mastershare(D)	0.85	4.78	4.07	11.26

Data as on June 8, 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 Reliance Large Cap Fund, Taurus Largecap Equity Fund, Baroda Pioneer Large Cap Fund, Reliance Focused Large Cap Fund, and DHFL Pramerica Large Cap Fund were the top large cap funds with a return of 1.44%, 1.16%, 1.10%, 1.05%, and 1.02%.

Aditya Birla SL Midcap Fund, UTI Mid Cap Fund, Invesco India Midcap Fund, Reliance Growth Fund, and Axis Midcap Fund were the top mid cap funds & top small cap funds with a return of 1.10%, 0.89%, 0.88%, 0.76%, and 0.52% respectively.

In the Large and Mid Cap Fund category, Reliance Vision Fund, Kotak Equity Opp Fund, UTI Core Equity Fund, Invesco India Growth Opp Fund, and Franklin India Equity Advantage Fund were the top mutual funds with returns of 1.75%, 0.98%, 0.97%, 0.85%, and 0.71% respectively.

Among multicap funds, UTI Bluechip Flexicap Fund, Parag Parikh Long Term Equity Fund, Taurus Starshare (Multi Cap) Fund, Mirae Asset India Equity Fund, and Kotak Standard Multicap Fund were the top multicap funds with returns 1.46%, 0.91%, 0.90%, 0.89%, and 0.88% respectively.

Top Performing ELSSs of the week

In the ELSS category, Reliance Tax Saver (ELSS) Fund, Quantum Tax Saving Fund, Invesco India Tax Plan, Escorts Tax, and DSPBR Tax Saver Fund were the top ELSS funds, generating a return of 1.28%, 1.10%, 0.92%, 0.71%, and 0.69% 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 Reliance Equity Hybrid Fund, DHFL Pramerica Hybrid Equity Fund, HSBC Dynamic Asset Allocation Fund, Shriram Equity & Debt Opp Fund, and UTI Hybrid Equity Fund. These schemes delivered a return of 0.57%, 0.54%, 0.48%, 0.48%, and 0.47% respectively.

How to invest in the best mutual fund schemes?

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.

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.

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: Investing Changes Forever From 2nd July We are launching our much awaited Robo Adviser on the 2nd of July. However, there is a way you can sign up for it right away and become a FOUNDER MEMBER with a& “Never Before, Never Again offer” PS: We will only be accepting 1000 sign ups under this FOUNDER MEMBER offer. YES, MAKE ME A MEMBER 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.

This service is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Quantum Information Services Private Limited or its affiliates to any registration or licensing requirement.

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: 103, Regent Chambers, 1st Floor, 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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