Best Indian Mutual Funds for 2013

One of the common asked question here is which is the best mutual fund to invest. I get this query number of times via email, comments etc. So, I decided to list them in different categories for the benefit of all.

While selecting funds, I’ve taken many factors in mind like past performance of fund, objective of fund, AUM, expense ratio, age of the fund, consistent return, standard deviation, Beta, portfolio of fund, AMC reputation etc.

Equity Mutual Funds

The best way to create wealth either for yourself, or for your child’s education or marriage or your own retirement planning, just invest in these funds. Suitable for long-term investors i.e. more than 5 years of time. You can invest lump-sum and/or invest via SIP mode also. Don’t see NAV on daily basis and don’t stop your investment if market is down. These schemes invest around 80%- 100% in stock market.

HDFC Top 200
HDFC Mid-Cap Fund
HDFC Equity Fund
IDFC Premier Equity Fund
Reliance Regular Savings Fund – Equity

Thematic Funds

These funds invest in one particular sector rather than diversifying the portfolio. So, such funds carries more risks. Invest only 10% of your portfolio in such funds.

Reliance Pharma Fund
Reliance Banking Fund
SBI FMCG Fund

Balanced Fund

If your time horizon is less than 3-5 years, you can invest in Balanced Funds as they invest around 60% in equity & balance 40% in debt.

HDFC Prudence Fund
HDFC Balance Fund
Reliance Regular Savings Fund – Balanced

 

Gold Funds



These funds invest in Gold. There is already full article titled “13 ways to invest in Gold” which explains further these funds.

SBI MF Gold ETF
Reliance Gold ETF or Reliance Gold Fund
HDFC Gold Fund

MIP

These are Monthly Income Plans. They offer monthly income in the form of dividend. But remember, it’s not mandatory that company will give dividend every month. Since about 20% of money will be invested in equity, it’s possible that company fails to give dividend in case stock market is down like in 2008. So, if you’re looking for regular monthly income, without any break, forget these mutual funds, & go for Post office MIS or Bank FDs with monthly interest payout. Although in long term, these plans can give better returns than post office MIS.

HDFC MIP Long Term Growth
Reliance MIP
Birla Sun Life MIP II -Savings 5 Plan

ELSS

Equity Linked Savings Scheme also invest upto 100% in equity like equity diversified fund. The only difference is that it has a lock-in period of 3 years. So, you get tax-advantage of Sec80C by investing in these schemes as per the current tax rules.

Reliance Tax Saver Fund
HDFC Long Term Advantage Fund
Franklin India Tax Shield

All of the above mentioned funds various options like Growth, Dividend-reinvest, dividend payout etc. If you’re a long-term investor and your objective is to create wealth for yourself or for child’s education or marriage or simply for retirement purpose, just go with Growth option.

Note: I STRONGLY suggest to invest in above mutual funds (except MIP) via SIP rather than lump-sum amount.

If you’ve got any doubt, please feel free to ask that under comments section below.

Best Indian Mutual Funds for 2013
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17 thoughts on “Best Indian Mutual Funds for 2013”

  1. SIR,
    MY Name Pradeep kumar my enrolment no2008/03255/00135 NPR Rcpt no==510513002707400030027066005
    mere paas 11 jui 2014 ko apka SMS aya tha. but mujhe kya karna hai nahi pta. abtak aadhaar card nhi mila hai.plz help me

  2. Hi.
    I am 30 yrs old unmarried person. I want to invest 35000 /-per month. I’ve planned to invest as follows:
    1 unit(Around 5000)gold etf (sbi etf)
    7000 ICICI FOCUSED BLUECHIP
    7000 HDFC TOP 200
    7000 RELIANCE REGULAR SAVING FUND
    Rest of the money in Bank RD or PPF
    Is my planning is good enough? If not, please suggest changes accordingly.
    Thanks & Regards
    ATIREK

    1. You’ve selected right funds. Just monitor them carefully especially Reliance Regular Savings Fund.
      Also, add IDFC Premier Equity Fund to your portfolio.
      Admin

  3. Hi,
    The fund allocation percentage is not specified pls specify. For example if i want to invest 10000 per month in mutual funds and my goal is 50 lac in 15 years. So pls sugest the the % allocation in mutual funds.

  4. Dear sir,my age 29 & monthly income is rs 18000,i m a beginner.I want to invest rs 3000/month in mf.should I take 3 or 2 fund?and in which company?plz suggest me.i want to take some risk also…regards…abhi

    1. Hello Abhijit,

      You can start SIP in mutual funds. Start with HDFC Top 200 and IDFC Premier Equity Fund. Later on add Gold ETF or Gold mutual fund also in your portfolio.
      Admin

    1. This is a common question / doubt in the beginning. I suggest you to go with few articles under Mutual Funds section. It will help you to understand the basics.

      Admin

  5. have followed Mr Dhirendra Kumar’s articles while in India, and have found them extraordnarily useful. I am delightd to have found this link.
    Although, I am a very late starter, & am 61yrs. I would like his advice on MF SIP’s

  6. Dear sir,
    Is L & T MF good for investing online or is there any other MF house which are good in terms of reliability and returns, I would opt for SIPs
    for 3 to 4 years atleast Please inform.
    Regards
    Raghu

    1. Hello Raghu,

      Leave L&T at this moment. Check the list from the above article for the scheme names. Start with balanced mutual fund and increase your time horizon to at least 5 years.

      Hope it will help you.
      Admin

      1. SIR,
        I AM INVESTING Rs 5000/- PER MONTH IN METLIFE INSURANCE, IN “MET SMART PLUS” SCHEME FROM LAST 3 YEARS.
        IS IT BETTER TO CONTINUE IN THE SAME SCHEME? OR TO SWITCH OVER TO SOME OTHER SCHEME. PLEASE LET ME KNOW.
        NANDAGOPAL J

        1. Check the charges for the coming years. Generally, insurance plans have higher charges. It’s better to invest in mutual funds to create wealth and take online term insurance plans to cover risk.
          Admin

    1. Equity means money will be invested in stock market. It can be directly or via mutual funds. Equity carries high risk also with chances of high returns.
      Debt means NO stock market. Only safe instruments like Govt. Bonds, good ratings bonds, FD, FMPs etc. It carries very low risk (interest rate fluctuation), so returns are also low.

      Hope it will help you.
      Admin

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