Top 10 Mutual Funds to invest in July 2019

Let us look at rolling performance of 24 funds across 8 key MF categories as of the end of June.

Jul 03, 2019 01:07 IST India Infoline News Service

Mutual Funds
A common disclaimer in any mutual fund brochure or advertisement is that past performance may not be reflective of future returns. While that is true, from an analytical perspective, a combination of market returns and consistency of performance can be a useful insight for fund investors. We look at rolling performance of 24 funds across 8 key MF categories as of the end of June. This should be a good starting point to start creating your mutual fund shopping list for July 2019. Of course, for the purpose of comparability, we have considered only the growth option of regular plans in each of the cases.
 
1. Equity Large Cap Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Focused Fund (G) 3.3824% 10.006% 15.426%
Mirae Large Cap Fund (G) 13.676% 16.106% 14.781%
Reliance Large Cap Fund (G) 15.7328% 15.848% 12.931%
Data Source: Morningstar
 
2. Equity Multi Cap Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Motilal Multi Cap 35 Plan (G) 3.099% 13.815% 17.713%
Kotak Standard Multi cap (G) 12.264% 14.794% 15.257%
SBI Magnum Multi Cap (G) 10.316% 13.109% 15.039%
Data Source: Morningstar
 
3. Equity Linked Savings Schemes (ELSS)
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Quant Tax Plan (G) 7.977% 12.114% 17.005%
Axis Long Term Equity (G) 7.484% 14.032% 15.149%
Kotak Tax Saver Fund (G) 14.953% 14.158% 14.145%
Data Source: Morningstar
 
4. Balanced Funds (Aggressive Allocation)
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
SBI Equity Hybrid Fund (G) 11.229% 11.828% 12.872%
ICICI Pru Equity & Debt (G) 11.570% 12.861% 12.245%
DSP Equity & Bond Fund G) 9.177% 11.027% 12.228%
Data Source: Morningstar
 
5. Equity Index Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Nifty Next 50 (G) -1.413% 11.332% 11.293%
HDFC Index Sensex Fund (G) 13.178% 14.992% 10.482%
UTI Nifty Index Fund(G) 12.379% 14.238% 10.418%
Data Source: Morningstar
 
6. Arbitrage Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Edelweiss Arbitrage Fund (G) 6.369% 6.274% 6.882%
Reliance Arbitrage Fund (G) 6.566% 6.402% 6.827%
Kotak Equity Arbitrage (G) 6.487% 6.308% 6.738%
Data Source: Morningstar
 
7. Government Securities Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Reliance Gilt Sec Fund (G) 14.833% 9.831% 10.605%
SBI Magnum Gilt Fund (G) 13.451% 9.381% 10.533%
Aditya Birla G-Sec Fund(G) 13.685% 9.335% 10.387%
Data Source: Morningstar
 
8. Credit Risk Funds
 
The leaders in this category based on five year returns (as of 28th June 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Franklin India Credit Risk (G) 7.322% 8.074% 8.489%
HDFC Credit Risk Fund (G) 7.839% 7.382% 8.481%
ICICI Pru Credit Risk Fund (G) 7.751% 7.778% 8.294%
Data Source: Morningstar
 
Key takeaways
These are rolling returns over different time periods, although we have taken 5 years as the benchmark for rankings. Normally, a 5-year return tends to normalize cycles in performance and hence gives a better picture of the long term potential of the fund. The second aspect is consistency of the fund when adding a fund to your portfolio. There are two ways to look at consistency. Firstly, you can stay away from funds where the variation in return is too high between 1-year, 3-year and 5-year returns. Secondly, check if the winners repeat in most of the months presented. These could be the winners for you!

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