Top 3 Equity funds to create wealth in long term

Numerous retail investors are joining the mutual funds family to create wealth. But most of them are not aware of mutual funds schemes available in the market thus they face their first hurdle of identifying the best mutual funds schemes to create wealth.

Oct 27, 2017 01:10 IST India Infoline News Service

Numerous retail investors are joining the mutual fund's investors family to create wealth. But most of them are not aware of mutual funds schemes available in the market thus they face their first hurdle of identifying the best mutual funds schemes to create wealth.

Investors should use certain criteria to short-list the schemes to invest. Some of the criteria are mentioned below:
  • Historical performance of the schemes
  • How consistently the schemes have performed
  • The investment philosophy of the fund manager
  • The history of the fund manager etc.

We have also selected the below-mentioned schemes based on the above criteria.

Investors can also invest in the below schemes to create wealth in long term.

Scheme Name AUM
(Rs cr) 
1 Y (%) 3 Y (%) 5 Y (%)
Aditya Birla SL Top 100 Fund(G) 3,390 20.2 13.6 19.0
HDFC Mid-Cap Opportunities Fund(G) 17,917 19.5 20.1 25.8
Tata Equity P/E Fund(G) 1,815 28.9 20.9 23.4
1 year returns are absolute; 3 years and 5 year returns are CAGR.
AUM as of September 2017, Returns are as on October 26, 2017

 
Aditya Birla SL Top 100 Fund is a large-cap equity fund which primarily invests in top 100 stocks by market capitalization. The fund has invested ~93% of its AUM in large-cap stocks. The fund follows growth cum value investment style to create wealth in long-term.
 
HDFC Mid-Cap Opportunities Fund is a mid-cap equity fund which does tactical allocation between large-cap, mid-cap, and small-cap to generate high returns for investors.  The fund has invested ~83% of its AUM in large-cap stocks, and ~17% in mid-cap and small-cap stocks. It has a well-diversified portfolio with no more than ~10% exposure to any particular sector. It has also managed its concentration risk, top 10 stocks account for only ~25% of the AUM.
 
Tata Equity P/E Fund is a value-conscious equity fund which aims to invest 70-100% of its AUM in stocks whose 12 months rolling PE ratio is lower than 12 month rolling PE ratio of BSE Sensex. The remaining AUM is allocated in other equity and debt instruments. The fund has invested ~85% of its AUM in large-cap stocks to generate higher returns.

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