Best Equity Diversified Mutual Funds?

Dear All,

I am a first time investor in Mutual Funds. After going through Value Research online, I have selected the following funds for SIP (Rs. 14k pm).
Please tell whether my decision is correct:

Franklin India Prima (Growth) :: Rs.1000
Franklin India Prima (Dividend with Reinv) :: Rs.1000
HDFC Equity (Growth) :: Rs.1000
HDFC Equity (Dividend with Reinv):: Rs.1000
Magnum Contra (Growth) :: Rs.1000
Magnum Contra (Dividend with Reinv) :: Rs.1000
Magnum Global (Growth) :: Rs.1000
Magnum Global (Dividend with Reinv):: Rs. 1000
Reliance Growth (Growth) :: Rs.1000
Reliance Growth (Dividend with Reinv):: Rs. 1000
Reliance Vision (Growth) :: Rs.1000
Reliance Vision (Dividend with Reinv):: Rs. 1000
Sundaram BNP Select Midcap (Growth) :: Rs.1000
Sundaram BNP Select Midcap (Dividend with Reinv) :: Rs. 1000

5 Replies to “Best Equity Diversified Mutual Funds?”

  1. The mutual fund where you want to invest should have credibility and good track record of at least 3 years. The fund must have outperformed sensex.

    Your selection is100% okay.

    But I would suggest you to opt for “dividend reinvest”. The dividend is tax free and reporting in returns is very easy. The aspect of income accrued is clear yearwise from income tax point of view. In Growth that too with SIP there will be some difficulty in working out capital gain figures. Though the capital gains are income tax free if investment remains more than 1 year but reporting of capital gains will force you to work out which investment group you have redeemed (FIFO will have to be followed up – no such encumbrances in dividend reinvest).

    Another suggestion is you may consider to open SIP in ELSS of any of above mutual funds. ELSS are outperforming comparatively and the investment is eligible to get you deduction under section 80C.
    In case you want more opinion please email me.


  2. magnum contra (growth)is a good fund for sip.its a equity based fund gives a good return like 15 to 20 % per annum .but for this the sip period should not less than 3 years. franklin prima (growth) is also agood fund.

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