If you are looking for best mutual funds to invest in 2013 in India, go here to read my article on the same.
Everything below is for 2012 and earlier so you might want to skip reading.
If you are looking for best mutual funds to invest in 2012 in India, do read our new articles:
- Best Large Cap Mutual Funds to invest in 2012 in India
- Best Large Cap and Mid Cap Mutual Funds to invest in 2012 in India
- Best Mid Cap and Small Cap Mutual Funds to invest in 2012 in India
- Best Tax Saving mutual funds to invest in 2012 in India
For best mutual funds to invest in india in 2011, carry on reading the below article -
It’s the right time in the year to revamp your portfolio of mutual funds to clear out the duds and hand pick those which will add value and stability apart from giving some decent returns in 2011. Obviously, the mutual funds that we want to pick are the ones that have been the stalwarts of performance over both bull and bear phases of the stock market in the last few years. Let’s see the best mutual funds to invest in 2011 for a robust portfolio.
As a side note, there is some interesting read on the mutual funds that notched the highest returns in 2010 for investors. Have a look at that as well.
While there a quite a few that make the list, I have chosen 10 from different categories. Let’s get to our list of best mutual funds to invest in 2011.
1. DSPBR Top 100 Equity Reg
DSPBR Top 100 Equity Reg is an open ended large cap equity fund bench-marked against BSE 100 running for 7 years now. It has returned a staggering 35% since launch, that is no small feat for a fund whose net assets have now swelled to Rs 2,773/- crores. With a low risk taking capacity and a above average return, this fund should be on the top of your shopping cart in 2011.
| Returns in % | ||||
| DSPBR Top 100 Eqt Reg | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 35.11 | 21.99 | 3.78 | 17.23 |
| Category | - | 16.38 | -0.09 | 18.2 |
2. DSPBR Balanced
DSPBR Balanced is a hybrid equity oriented mutual fund that is bench marked against CRISIL Balanced. With a track record of 11 years and a below average risk profile, the returns have been above average – around 18%. The corpus of around Rs 790/- crores makes it easy for the fund manager to manage the fund. As of writing, the portfolio allocation between equity and debt stood at 75% and 25% approx.
| Returns in % | ||||
| DSPBR Balanced | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 18.06 | 18.57 | 5.22 | 16.11 |
| Category | - | 14.28 | 2.02 | 16.49 |
3. Franklin India Bluechip
Franklin India Bluechip fund is a veteran of a fund – it’s running for some 17 years now. Bench marked against the Sensex, the returns have been high, around 26.5% since launch. With a low risk profile and a steep orientation towards large cap stocks, this fund is a great gem to have. It’s long term outlook on stocks and ability to give returns to investors without taking unnecessary risks makes it a top contender in your portfolio for 2011.
| Returns in % | ||||
| Franklin India Bluechip | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 26.64 | 19.24 | 4.89 | 19.87 |
| Category | - | 15.39 | -1.15 | 14.32 |
4. Birla Sun Life Frontline Equity
Bench marked against the BSE 200 this 9 year old fund has come in the lime light since 2006. Birla Sun Life Frontline Equity has an allocation to both large caps and mid caps – in fact, its allocation to mid caps has risen of late – currently mid caps account for 20% of the portfolio while the rest is held by large caps. With a below average risk profile and a great fund manager at the helm of affairs, Birla Sun Life Frontline Equity should feature as a must have open ended diversified equity fund in your portfolio for 2011.
| Returns in % | ||||
| Birla Sun Life Frontline Equity | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 30.66 | 21.79 | 3.83 | 14.66 |
| Category | - | 15.39 | -2.31 | 13.13 |
5. HDFC Top 200
This 14 year old fund needs no introduction. Up against BSE 200, it has delivered 26% returns since launch and has always maintained a low risk profile. This should form the core part of your portfolio – nearly 80% of its holdings are held in large cap and the rest in mid and small caps. A long term track record and process oriented management makes it one of the best equity diversified mutual funds for every portfolio in 2011.
| Returns in % | ||||
| HDFC Top 200 | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 25.89 | 22.06 | 8.53 | 20.86 |
| Category | - | 15.39 | -2.31 | 13.13 |
6. HDFC Prudence
HDFC Prudence has been in existence since 1994 and with an annual returns of around 22%, it has exhibited prudence in delivering returns for investors. It did falter in 2007 and 2008 but has come back strongly to show it can be relied upon. Nearly 50% of its portfolio is in large caps while the rest is in small and mid caps. As of writing, it has maintained a 75% allocation to equity and 25% in debt. A great choice in the hybrid category for year 2011.
| Returns in % | ||||
| HDFC Prudence | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 21.99 | 20.23 | 9.21 | 22.79 |
| Category | - | 13.74 | 1.27 | 13.07 |
7. HDFC Tax Saver
Another one from the HDFC stable, this ELSS (Equity Linked Saving Scheme) fund has returned a staggering 35% since its launch 15 years ago. Bench marked against S&P CNX 500, it has delivered high returns with a moderate risk profile. As of writing it has maintained 60% allocation to large cap stocks and the rest to mid and small cap. Nearly 90% of its holding is in equity.
| Returns in % | ||||
| HDFC Taxsaver | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 34.5 | 16.84 | 5.35 | 21.39 |
| Category | - | 13.42 | -2.75 | 14.53 |
8. Canara Robeco Equity Tax Saver
This 17 year old ELSS (Equity Linked Savings Scheme) mutual fund has delivered returns of 16% year on year. It’s bench marked against BSE 100 and nearly 60% of its holding is in large cap stocks and the rest in mid cap and small cap. A small net asset of Rs 230 crores makes it easier for the fund manager to manage this fund well. With a mantra of long term investment strategy and well diversified portfolio, its hard to avoid this fund this year.
| Returns in % | ||||
| Canara Robeco Equity Tax Saver | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 16.22 | 21.44 | 6.51 | 21.15 |
| Category | - | 13.42 | -2.75 | 14.53 |
9. Canara Robeco Income
Like Sahara Income (No. 10 down below), Canara Robeco Income is bench marked against CRISIL Comp BFI and is 9 years old. Majority of its holdings are in debentures, GOI securities and commercial paper. Certificate of deposits and treasury bills also feature in the portfolio. The average credit rating of AAA makes it a safe parking avenue for investors. With a return of 8.8% in the debt category, Canara Robeco Income makes for a great asset in your 2011 portfolio.
| Returns in % | ||||
| Canara Robeco Income | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 8.89 | 10.16 | 13.37 | 4.98 |
| Category | - | 6.32 | 6.35 | 4.74 |
10. Sahara Income
As the name goes, the intent of this open ended fund is to generate regular income through investments in debt instruments – most of its investments are in certificate of deposits and commercial paper. The average credit rating of holdings is AAA which makes it a safe mutual fund – hence the risk profile of the fund is very very low. The returns have been above average when compared to the benchmark CRISIL Comp BFI. Around for some 9 years now, Sahara Income is a must have debt oriented mutual fund in your portfolio in 2011.
| Returns in % | ||||
| Sahara Income | Since Launch | 5 yr | 3 yrs | 1 yr |
| Fund | 7.09 | 8.63 | 9.86 | 5.46 |
| Category | - | 6.32 | 6.35 | 4.74 |
Are there any mutual funds you know of which needed to make it to the list ?
Hello sir, I want to invest Rs.6000/- per month in Mutual fund in SIP basis for period of 10 to 12years, so i went to the financial advisor, he advised me to take the below plan:
1. Reliance Tax Saver Fund-Growth Plan(For Tax purpose)-2000/-
2. ICICI Prudential Mutual Fund-2000/-
3. SBI Mutual Fund-2000/-
Here my question is whether the above fund plan is profitable to me or not?? or else suggest me the good return plan.
Thanks in advance.
@Deepak,
I am surprised when your adviser mentioned Reliance Tax Saver. Also didn’t he mention the fund names of ICICI and SBI. Please do your own research before investing. I would go with the below funds.
HDFC Top 200
DSP Top 100
I have been investing in them for over four years and have earned decent returns.
@Rakesh,
why rakesh Is Reliance Tax Saver not that much good ah???
FYI:
The other two plans are:
i.) ICICI Prudential Tax Plan-Growth
ii.)SBI EMERGING BUSINESS
I asked the advisor to invest my money into HDFC Top 200 or DSP Top 100, he said: that and all very high risk fund so as you are beginner i suggest you to invest the above mentioned plan, he has been in the field around 10years, so i don’t know what to do. kindly help me.
@Deepak,
Canara Robeco Equity Tax Saver is a much better fund, Please do your own research before investing. I don’t track the other funds mentioned by you. I am surprised why your advisor suggested not to invest in HDFC & DSP funds these funds have been consistent performers over the years. As your horizon is that of long term why worry about immediate risks. Please go to valuereseach and check the performance of the funds recommended by your agent and HDFC & DSP funds and then decide.
Invest in tax related MFs only if your 80C limit is not completed. With the home loan you have taken I don’t think you need anything else to invest for 80C.
The MF options I have given you below but I also recommend you to go into the archives section of this blog and read articles on MFs. It will help you in taking an educated and informed decision.
@Vivek,
Sorry vivek currently am not availing any loan, i am going to take a loan to construct my dream home. Thats is the reason i am simultaneously investing my money into the mutual funds also, because i wants to repay my loan amt of Rs.20lacs within 12years instead of 25years, so am expecting huge profit amount(27 to 30lacs) from mutual funds. IS my idea is right??? or suggest me a better idea/plan.
Dear Sir,
My name is Deepak, my age is 25. am recently got married. i am working as a senior software engineer in reputed organisation and my wife is also working. our total take home salary is around 54,000/- per month. We used to save Rs.21000/- per month, so i decided to take a Home loan to built a house, This is my long term goal.
Loan amount: Rs.20lacs, ROI:10.50%(fixed) Tenor:20years EMI: 15,000
So after that paying my EMI’s, i had hardly saving Rs.6000/-per month, so i decided to invest Rs.6000/-per month in SIP basis for the period of 10 to 12 years,beacuse based on the returns which i received from the mutual fund i am going to repay my full loan amount as soon, so kindly advice me the good high returns plans with average risk to achieve my goal.
Thanks & Regards,
Deepak.M
@Deepak,
You made a wise decision on building your own home. May i know why you choose Fixed term? With correction in interest rates you could have opted for floating rate and interest rates would come down in the near future.
@Rakesh,
Your question is right, nothing big rakesh; i just did some research on the Home loan interest in the year of 2008-2010 all the banks in india were charging interest rate of 8.75 to 9.75% for home loans, From 2010 to 2012(till march) they charging interest rate of 10.50 to 10.75% so if RBI comes reduce the interest rate means they will reduce at max of .25 to .50% but if they increased means it will increase around max of 1.25 to 1.75% so, i thought to take a wise decision of taking a fixed interest rate instead of taking Floating rate.
You have planned your finances well Deepak. You can invest the extra 6000 in
equity MFs via SIP. You can look to invest in 2-3 MFs, pick one each from below groups: -
- DSPBR Top 100 Equity Reg
- Franklin India Bluechip
- ICICI Prudential Focused Bluechip Equity
- HDFC Top 200
- UTI Opportunities
- IDFC Premier Equity
- Quantum Long Term Equity
After investing keep checking the performance of the funds and switch if any fund is consistently under-performing.
Happy Investing!
@ Vivek,
Now i can’t change anything vivek, because my 1st account statement got generated so atleast for 3years i have to be in the tax saver mutual funds(Reliance & ICICI). Then i don’t have sufficient amount to invest further because i have already taken medical insurance for me and my wife and am paying monthly Rs.4260/- for LIC premium also, so i decided to invest further only by nxt year.
These are my Investment Savings:
i.) Four Mutual funds(2 for me to save tax, 1 for my wife to save tax, 1 for future purpose)- Total spending: Rs.8000/- permonth SIP basis.
ii.) LIC Insurance(Sum Assured Rs.10lacs/-(Maturity: 25years), Remaining Rs.10lacs/-(after my death)- Total Spending: Rs.4260/- permonth.
iii.) Mediclaim Policy -Total spending: Rs.4650/- Perannum, monthly- Rs.390/-
iv.) Going to avail home loan: EMI- Rs.18,960/-
The above are my spendings and savings vivek. kindly help/advised me Is this is enough to survive or anything i have to add???? Your valuable advice will going to change my future.
LIC monthly premium Rs. 4260 for policy SA – 10 lakhs, which policy is this? Looks like benefiting the agent.
I think you need to read on term plans. You can get a 50 lakhs policy for as low Rs. 5000 per year.
That’s fine Deepak, you can invest in MFs suggested when you have some extra cash to invest.
I think you should immediately look to take a term insurance. I don’t think coverage of 10 lacs is enough especially when you are now taking a home loan.
@ Radhey:
Hello sir, i am waiting for your suggestion and advice kindly help me.
Hello sir, I have invest (1) SBI MSFU contra growth 2000/-pm (2) Relience growth 2000/- per month in Mutual fund in SIP basis for period of 10 to 12years, please advised me correct or not. My only one son 2.5 yrs old I want to invest for his education purpose please advice me long term in one time investment. My income is 25000/-PM, PF 8000/-pm going to 6 lacks that I want to reduce pf and invest to MF please advice me. I have retirement about yr 2022. thanks
@Pradip,
Do check the performance of both your funds on valueresearchonline site. If they are underperforming for quite sometime then its better to swtich to good funds.
HDFC Top 200/ DSP Top 100 are some of the good funds.
Dear Thewelthwisher,
I want to secure my 3 year old child future. kindly suggest me should i go traditional child plan or should i go with SIP.
If SIP, please suggest me best SIP….
@Mohit,
SIP is the way to go. How much money do you want to invest. You can select from the above discussed MF.
@Rakesh
i would like to start with minimum 1000 PM..
@Mohit,
You can invest in DSPBR Top 100. Do note investment in MF is for long term.
Do not take traditional plans, go for mutual funds. Read the archive section to find out the best performing one’s.
@Rakesh
I have two more query kindly guide me.
I am 33 year of age with 3 year old son, me & my wife is working i have 14 lakh bank loan & my total family income is 6.0Lakh PA. Currently i am paying normal LIC premium around 30,000 PA.
Query 1- should i secure my home loan?
Query 2- Please suggest which one is good for me “LIC Jeevan Saral & Kokak Capital Multiplier Plan” if other please tell me.
@Mohit,
I am not a financial expert, I am also a reader like you who have gained knowledge reading various articles here. Do spend time reading here and you would gain good knowledge.
As fore your queries -
Yes, you should always secure your home loan.
Don’t buy plans from LIC and Kotak their premiums are high and returns are low, instead buy an online term plan and invest the difference in MF by SIP’s.
This link talks about the best way to protect your home loan.
http://www.thewealthwisher.com/2012/05/23/home-loan-insurance-or-term-insurance/
Rakesh , you are best of the lot !
Hello sir,
I want to invest Rs 5000/- per month in MF.
Kindly guide me .
Hello sir,
I want to invest Rs 5000/- per month in MF.
Kindly guide me .
For what purpose ?
sir,
I want to diversify my investment portfolio.
@Nabanita,
What is your time horizon? please invest in MF only if you can wait for over 10 years and can be prepared to take some losses too.
ok. time horizon is not a problem.
Can you please suggest regarding the plans, since I am new to this MF field.
@Nabanita,
Go with DSPBR Top 100, HDFC Top 200 and Birla sunlife frontline equity funds. Make sure to review them every year. I have invested in these funds. Do spend time here and read various articles on personal finance, you will gain knowledge.
Hi I am new in MF investment.
i am planning to invest 4000-4500 per month in MF as per bellow can you please suggest me in this.
its sufficeant amount in the starting or should i plan 6000-7000pm
my planning
HDFC top 200- rs. 1000/-
UTI Opportunity – rs. 500/-
Franklin India Tax shield- rs- 1000/-
Reliance Equity rs-500/-
ICICI Prudential focus blue chip rs. 1000/-
Birla MNC Mid Cap rs. 500/- (confused)
please suggest + or – of money investing as above
Thanks in Advenced
@Kripa,
You don’t need 6 funds, select 2-3 funds. Do remember investment in equity is for long term.
From the above HDFC top 200, ICICI pru are good funds and you can invest in them.
Why did you select Franklin India taxshield? Reliance equity has been under performer, avoid it.
Thanks Rakesh,
Got it. Thanks you much for suggestion,
also can you please guide money proportion for above Fund. and which another MF i can add in my portfolio for minimized my risk.
Regards- Kripa S
Kripa,
DSP Top 100 is a good fund too. You can split Rs 1500 each into these three funds.
Please do your own research before investing.
Also make sure to review your investments once every quarter.
Well Noted Thanks !!
Rakesh