Saturday, January 16, 2016

Best Diversified Equity Mutual Funds for 2016

Best Diversified Equity Mutual Funds Invest Online
 
Diversified Equity Funds article in Advisorkhoj - Best Diversified Equity Mutual Funds: Consistent Performers for investment in 2015
 

In our previous article Best mutual fund consistent performers in 2015: Large Cap Funds, we discussed the most consistent large cap funds based on CRISIL's ranking of consistent performers. In this blog, we will discuss the top 8 most consistent flexi cap diversified equity funds. Consistent flexi cap performers outperformed their market benchmark and their peers, generating good returns across different market conditions. CRISIL has a special ranking for consistent performers across all equity fund categories. CRISIL ranks consistent performers based on mean return and volatility over 5 years, in addition to the CRISIL cluster rank for the 3 year performance of the fund. CRISIL calculates mean return and volatility for five years, with each one-year period being weighted progressively with the most recent period having the highest weight.

Top 10 flexi cap diversified equity consistent performers

The table below lists the top 8 consistent large cap fund performers based on CRISIL ranking. The funds are listed in descending order of 3 years trailing annualized returns. Returns in the table are for growth options in regular plans. Trailing returns are based on NAVs on September 09, 2015. While the table shows trailing returns from the funds across different timescales, investors should not give too much importance to short term returns. Equity mutual fund investments should always be made with a long term investment horizon. Short term performance is influenced by the market conditions prevailing during the time period. Long term performance (over an investment horizon of 3 years or more) reflects the strength of the fundamentals and the structural macro-economic growth.


Diversified Equity Funds - Top 10 flexi cap diversified equity consistent performers


If we compare the returns of the top 8 consistent performers with that of the flexi cap diversified equity funds category, most of these funds have outperformed the category both in the short term and the long term.

Rolling Returns of the Top 8 most consistent performers

Rolling returns is the best measure of a fund's performance in terms of consistency. Trailing returns have a recency bias and point to point returns are specific to the period in consideration. Rolling returns, on the other hand, measures the fund's absolute and relative performance during the timescale in question, without bias. We will see that the Top 10 flexi cap diversified equity funds in question have delivered outstanding rolling returns over the long term.

ICICI Prudential Exports and Other Services

The chart below shows the 3 year rolling returns of the ICICI Prudential Exports and Other Services fund over the last 5 years. Rolling returns are the absolute returns of the scheme taken for a specified period on every day/week/month and taken till the last day of the duration. We have chosen 3 years as the rolling returns time period because it is always recommended that long term investors should hold equity funds for at least 3 years. In this chart we are showing returns on every day during the specified period and comparing it with the benchmark. The orange line shows the 3 year rolling returns of the ICICI Prudential Exports and Other Services (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX 500 index. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) since the beginning of 2011. From mid 2011 onwards, the fund has given more than 100% absolute 3 year returns (more than 26% on an annualized basis).


Diversified Equity Funds - Rolling Returns of ICICI Prudential Exports and Other Services

 


Franklin India High Growth Companies Fund

The chart below shows the 3 year rolling returns of the Franklin India High Growth Companies Fund over the last 5 years. The orange line shows the 3 year rolling returns of the Franklin India High Growth Companies Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX 500. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the September of 2011.


Diversified Equity Funds - Rolling Returns of Franklin India High Growth Companies Fund

 


UTI MNC Fund

The chart below shows the 3 year rolling returns of the UTI MNC Fund over the last 5 years. The orange line shows the 3 year rolling returns of the UTI MNC Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX 500. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the end of 2011 onwards.


Diversified Equity Funds - Rolling Returns of UTI MNC Fund


Franklin India Prima Plus Fund

The chart below shows the 3 year rolling returns of the Franklin India Prima Plus Fund over the last 5 years. The orange line shows the 3 year rolling returns of the Franklin India Prima Plus Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX 500. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the beginning of 2012.


Diversified Equity Funds - Rolling Returns of Franklin India Prima Plus Fund

Source: Advisorkhoj Rolling Return Calculator


Birla Sun Life India Gennext Fund

The chart below shows the 3 year rolling returns of the Birla Sun Life Gennext Fund over the last 5 years. The orange line shows the 3 year rolling returns of the Birla Sun Life Gennext Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX Nifty. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the beginning of 2012.


Diversified Equity Funds - Rolling Returns of Birla Sun Life India Gennext Fund

Source: Advisorkhoj Rolling Return Calculator


Tata Ethical Fund

The chart below shows the 3 year rolling returns of the Tata Ethical Fund over the last 5 years. The orange line shows the 3 year rolling returns of the Tata Ethical Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark CNX 500 Shariah index. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the beginning of 2012.


Diversified Equity Funds - Rolling Returns of Tata Ethical Fund

Source: Advisorkhoj Rolling Return Calculator


Mirae Asset India Opportunities Fund

The chart below shows the 3 year rolling returns of the Mirae Asset India Opportunities Fund Fund over the last 5 years. The orange line shows the 3 year rolling returns of the Mirae Asset India Opportunities Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark BSE 200. We can see that the fund has consistently given more than 50% absolute 3 year returns (more than 14% on an annualized basis) from the middle of 2011 and more than 100% absolute 3 year returns (more than 26% annualized) from the end of 2011 onwards.


Diversified Equity Funds - Rolling Returns of Mirae Asset India Opportunities Fund

Source: Advisorkhoj Rolling Return Calculator


L&T Equity Fund

The chart below shows the 3 year rolling returns of the L&T Equity Fund over the last 5 years. The orange line shows the 3 year rolling returns of the L&T Equity Fund (Growth Option) and the black line shows the 3 year rolling returns of the benchmark BSE 200. We can see that the fund has consistently given more than 50% absolute 3 year returns (14% on an annualized basis) from September of 2011 and more than 100% absolute 3 year returns (26% annualized) from the beginning of 2012 onwards.


Diversified Equity Funds - Rolling Returns of L&T Equity Fund

Source: Advisorkhoj Rolling Return Calculator


Conclusion

In this article, we have discussed about the top 8 consistent performers among flexi cap diversified equity funds category, as per the most recent CRISIL ranking. In our next article, we will discuss the consistent performers among small and midcap funds. You may contact your financial advisor if you want to invest in these funds.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

0 comments: