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SUBSCRIBE TO E-NEWSLETTER Recommended Mutual Funds for 2014 This is our detailed note on the Recommended Funds for 2014. Author : Dr. Renu Pothen

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fundsupermart- List of Recommended Mutual Funds

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Recommended Funds as on June 2013 EQUITY FUNDS
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND FRANKLIN INDIA BLUECHIP FUND

Recommended Funds For 2014
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND FRANKLIN INDIA BLUECHIP FUND BSL FRONTLINE EQUITY FUND CANARA ROBECO EQUITY DIVERSIFIED SBI MAGNUM EQUITY FUND HDFC MID-CAP OPPORTUNITIES FUND IDFC STERLING EQUITY FUND SBI EMERGING BUSINESS FUND MIRAE ASSET EMERGING BLUECHIP FUND UTI OPPORTUNITIES FUND MIRAE ASSET INDIA OPPORTUNITIES FUND RELIANCE EQUITY OPPORTUNITIES FUND AXIS EQUITY FUND IDFC PREMIER EQUITY FUND PLAN A ICICI PRUDENTIAL DISCOVERY FUND SBI CONTRA FUND TATA DIVIDEND YIELD FUND FRANKLIN INDIA INDEX FUND BSE SENSEX PLAN ICICI PRUDENTIAL INDEX FUND HDFC INDEX FUND-SENSEX PLUS PLAN FRANKLIN INDIA TAXSHIELD CANARA ROBECO EQUITY TAX SAVER AXIS LONG TERM EQUITY FUND ICICI PRUDENTIAL TAX PLAN BNP PARIBAS TAX ADVANTAGE PLAN (ELSS) JPMORGAN GREATER CHINA EQUITY OFF SHORE FUND BSL INTERNATIONAL EQUITY FUND PLAN A L&T GLOBAL REAL ASSETS FUND ICICI PRUDENTIAL BANKING & FINANCIAL SERVICES FUND SBI PHARMA FUND PINEBRIDGE INFRASTRUCTURE & ECONOMIC REFORM FUND STANDARD PLAN DSP BLACKROCK INDIA T.I.G.E.R. FUND CANARA ROBECO INFRASTRUCTURE SBI FMCG FUND ICICI PRUDENTIAL TECHNOLOGY FUND NA

LARGE CAP

BSL FRONTLINE EQUITY FUND DSP BLACKROCK TOP 100 EQUITY FUND NA HDFC MID-CAP OPPORTUNITIES FUND

MIDCAP & SMALL CAP

IDFC STERLING EQUITY FUND SBI EMERGING BUSINESS FUND DSP BLACKROCK SMALL AND MID CAP FUND UTI OPPORTUNITIES FUND MIRAE ASSET INDIA OPPORTUNITIES FUND

MULTI CAP

RELIANCE EQUITY OPPORTUNITIES FUND NA NA

CONTRA & VALUE DIVIDEND YIELD

ICICI PRUDENTIAL DISCOVERY FUND RELIGARE INVESO CONTRA FUND BSL DIVIDEND YIELD PLUS FRANKLIN INDIA INDEX FUND BSE SENSEX PLAN

INDEX

ICICI PRUDENTIAL INDEX FUND HDFC INDEX FUND-SENSEX PLUS PLAN FRANKLIN INDIA TAXSHIELD CANARA ROBECO EQUITY TAX SAVER

ELSS

AXIS LONG TERM EQUITY FUND ICICI PRUDENTIAL TAX PLAN RELIANCE TAX SAVER ( ELSS ) FUND JPMORGAN GREATER CHINA EQUITY OFF SHORE FUND

GLOBAL

FRANKLIN ASIAN EQUITY DWS GLOBAL AGRIBUSINESS OFFSHORE FUND

BANKING PHARMACEUTICALS

RELIANCE BANKING FUND RELIANCE PHARMA FUND PINEBRIDGE INFRASTRUCTURE & ECONOMIC REFORM FUND STANDARD PLAN

INFRASTRUCTURE

DSP BLACKROCK INDIA T.I.G.E.R. FUND ICICI PRUDENTIAL INFRASTRUCTURE FUND

FMCG TECHNOLOGY SPECIALITY

SBI FMCG FUND ICICI PRUDENTIAL TECHNOLOGY FUND L&T INDIA SPECIAL SITUATIONS FUND

DEBT FUNDS
FLOATING RATE/FLOATER NA NA TEMPLETON INDIA ULTRA SHORT BOND FUND ULTRA SHORT TERM AXIS TREASURY ADVANTAGE FUND ICICI PRUDENTIAL FLEXIBLE INCOME PLAN TEMPLETON INDIA SHORT TERM INCOME PLAN SHORT TERM PINEBRIDGE INDIA SHORT TERM FUND STANDARD PLAN DWS SHORT MATURITY FUND NA BSL DYNAMIC BOND FUND NA NA NA NA NA TEMPLETON INDIA SHORT TERM INCOME PLAN PINEBRIDGE INDIA SHORT TERM FUND STANDARD PLAN UTI SHORT TERM INCOME FUND SUNDARAM SELECT DEBT SHORT TERM ASSET PLAN BSL DYNAMIC BOND FUND

. Hence. surprisingly replaced UTI Bond Fund which is one of the biggest players in this category. we would advice our investors not to get carried away by these noises but stay put. whose equity funds were once a part of every investor’s core portfolio. Though the mandate remains the same. 2014 seems to belong to ICICI Prudential Mutual Fund which has got the maximum number of funds in our recommended list. its sectoral and stock picks and whether they actively manage the portfolios or just follow a buy and hold strategy etc. a combination of all these factors is employed to get to the final selection. as a result of which we are not advising any more fresh exposures into any of these funds. The knee jerk reaction from Mint Street to control the currency volatility saw the safest instruments in the debt category like liquid and ultra short term funds entering into a negative zone. The other 2 fund houses that are competing for the top slots are SBI Mutual Fund and Canara Robeco Mutual Fund. it does not make sense to run them through a model whose parameters are based on a 5-year time horizon. (iii) the ability of the fund to withstand a downtrend in the market. things began to improve and by the time the erudite Rajan took over the reins at Mint Street. As for the hybrid category. 14 in the debt category and the remaining 4 in the hybrid category. we could not make it a part of our earlier recommended lists on account of its mandate that it will not accept lump sum investments. one of the changes that we have made is that from this year onwards. this time our model has severely punished these funds. The biggest killer was the US FED Chairman’s announcement in May regarding the tapering of the bond buying programme which had a serious impact on both the equity and debt markets. modified duration together with the kind of strategies that the fund manager follows during different interest rate cycles is studied. Hence. all funds available on the iFAST platform which are segregated into different categories depending on the investment strategies are taken as sample. Changes in the Recommended Funds Our Recommended Funds for 2014 stand at 53 with 35 of them belonging to the equity category. our all-time top picks in Gilt-short Term and Long Term Categories. Hence.Replacements The month of January is eagerly awaited by our associates and investors as it is that time of the year when the iFAST Investment Advisory Division comes out with the list of recommended funds. However. and share information about any concerns that we see in any of the funds which were taken up for analysis. Dalal Street was in a party mood and we see a similar euphoria this year as well. When UPA formed the government in 2004. we continued to recommend the same to our investors. The resultant top 10 funds are then run through a subjective test which includes analyzing factors like the fund’s investment strategies. This was due to the belief that every equity fund goes through a volatile phase and it is only a matter of time before they regain their lost glory. iFAST Recommended Funds Methodology Initially. we had been telling our investors to be in the patient mode for some time. (ii) Expense Ratio and. average maturity. we raise all our concerns and demand answers with regard to their respective funds during this interaction. we had started including a pharma fund in our list of recommended funds since June 2010 and Reliance Pharma Fund has always been our top pick. we have decided to give thumbs up to this fund and hence Kenneth’s biggest bet makes an entry into our recommended funds list for the first time. Before getting into the details of the recommended funds for 2014. The first one is that Reliance Banking Fund which has been a part of our list since June 2009 when we first launched the iFAST Recommended Funds. The State Elections in December clearly indicated that the country needs a bold government which can take decisive actions to propel the economy back to the 9% growth rates. SBI Mutual Fund’s reign at the top is a clear indication that Navneet Munot and his team is working hard to regain the lost glory of a fund house which was once a household name amongst mutual fund investors. but the same set of economist-led team at North Block made sure that we grow at 4% after more than 9 years at the centre. In case of debt funds. It is only last year that we had started classifying this fund as a multicap. has been replaced with ICICI Prudential Banking & Financial Services Fund. The dividend yield fund from the Tata stable has made sure that the veteran gets into our list for the first time this year. The Chennai Express seems to be on track and here we are referring to Sundaram Mutual Fund. Although it is only in January that we release the recommended funds list. Other macroeconomic indicators like IIP. I would like to give a gist of how the funds actually make it to the final selection. we will continue to maintain a conservative stance in fixed income and suggest only short term funds and dynamic bond funds to our investors. . we had been advocating duration funds in the beginning of the year on the basis of our views on interest rates. However. Once we finalize the sample. This year the fund had to be replaced with SBI Pharma Fund. it is UTI Mutual Fund’s debt team led by Amandeeep Chopra that is slowly making an inroad into investor portfolios this year with their short term and dynamic category funds clearing all the filters in our model. As this is an open discussion. and the currency created havoc in the economy. the most promising fund in the multicap space i. but in turn made a lot of investors lose their faith in debt funds. At this juncture. We only have one thing to say to our investors: all categories of mutual funds including both equity and debt are subject to volatility and they should be aware about the same before taking an exposure into any of the funds. ICICI Prudential Short Term Gilt Fund and ICICI Prudential Long Term Gilt Fund. However. After a thorough analysis of all the above mentioned factors. This note will not be complete without our views on the fund houses that have entered our recommended funds list this year. in the case of equity funds. factors like credit quality. even though the street has been chanting the “NaMo” Mantra. out of the 35 funds. As far as fixed income is concerned. This filtration is mandatory across all main categories of funds that include Equity. We don’t have any serious concerns on these 2 funds as we believe that they are going through short term volatility as of now. They are slowly recouping as can be seen from our model. We are aware about the fact that our investors had reposed a lot of faith in these 2 funds. Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund. However. Another surprise entrant into our recommended funds list this year is Tata Mutual Fund. This is the medium through which we inform our investors about the best funds in the industry that should be a part of their portfolio. (i) performance over a 5 year time horizon. There have been 2 big changes that have come up in the recommended funds this year. the fund house seems to be getting its bets right in the debt space. we were growing at more than 9%. we will not have any recommended Ultra Short Term Funds. my team runs the sample funds through our model which is based on 3 parameters namely. one of the oldest survivors in the industry. and our advice to all of them would be to stay invested in these funds and not stop any of the ongoing SIPs into the same. Secondly. Though the fund management team saw a few high profile exits in the last few years. as a result of which Sundaram Select Debt Short Term Asset Plan has become a part of our recommended short term funds. Debt and Hybrid. This is because we would also like to wait and watch what Rajan and team will be doing in the coming months. Next. Anoop Bhaskar and his UTI Opportunities Fund has been a part of our recommended funds from 2011 and continues to beat all the model parameters this year as well. There has been no looking back for this fund house with a total of 5 funds entering the recommended funds list this year. (ii) Their corpus for the last 1 year should be at least INR 50 crore. when we analyze the list of the top 10 funds in each category. being a relatively small fund. the result of this discussion also tends to have a bearing on the final outcome. the bad phase gave way to some positive sentiments with the government waking up from a long slumber and passing bills and legislations in a hurry. As for the debt category. The fund always used to be the top performer in whichever categories it was placed. The street could not hold onto last year’s party mood for long as both the domestic and global environment spoilt the jubilation. Finally. Although these funds had been going through short term volatility for some time now. we finally come out with the top performers in the respective categories which are then shared with our associates and investors so that they can take an appropriate call and invest wisely. but things went for a toss after the FOMC announcement on tapering.e. while in the previous years the fund belonged to the midcap space. CAD.Recommended Funds for 2014 Last year when I was introducing my Recommended Funds for 2013. IDFC Premier Equity Fund has been the favorite of many of our investors. These measures did not help the currency. While for a change. the team starts working on the model from December onwards and we are as anxious as our investors to see the outcome of our model. This is owing to our belief that since these funds are only used as a vehicle to park the surplus required for a short time period. which have been a part of our recommended funds list since 2011 have given way to SBI Magnum Gilt Fund Short Term Plan and IDFC Government Securities Fund Investments Plan B.BSL DYNAMIC BOND FUND UTI DYNAMIC BOND FUND DYNAMIC BOND FUND DSP BLACKROCK STRATEGIC BOND FUND IDFC DYNAMIC BOND FUND PLAN B SBI DYNAMIC BOND FUND TEMPLETON INDIA INCOME BUILDER ACCOUNT PLAN A INCOME CANARA ROBECO INCOME UTI BOND FUND GILT-SHORT TERM GILT-LONG TERM ICICI PRUDENTIAL SHORT TERM GILT FUND BSL GOVERNMENT SECURITIES FUND LONG TERM PLAN ICICI PRUDENTIAL LONG TERM GILT FUND BSL DYNAMIC BOND FUND UTI DYNAMIC BOND FUND DSP BLACKROCK STRATEGIC BOND FUND NA NA TEMPLETON INDIA INCOME BUILDER ACCOUNT PLAN A CANARA ROBECO INCOME BARODA PIONEER PUBLIC SECTOR UNDERTAKING (PSU) BOND FUND SBI MAGNUM GILT FUND SHORT TERM PLAN BSL GOVERNMENT SECURITIES FUND LONG TERM PLAN IDFC GOVERNMENT SECURITIES FUND INVESTMENT PLAN PLAN B HYBRID FUNDS BALANCED HDFC BALANCED FUND HDFC PRUDENCE FUND DSP BLACKROCK MIP FUND RELIANCE MONTHLY INCOME PLAN AXIS TRIPLE ADVANTAGE FUND HDFC BALANCED FUND ICICI PRUDENTIAL BALANCED FUND DSP BLACKROCK MIP FUND CANARA ROBECO MONTHLY INCOME PLAN NA MIP ASSET ALLOCATION -New Entrants . the debt market recovered from the mayhem witnessed in the month of July and the fixed income market moved into a positive zone. Specifically. UTI Short Term Income Fund and Sundaram Select Debt Short Term Asset Plan are the new entrants in the Short Term category. the superb performance of the funds is a clear indication that the processes at the fund house are robust. As for the equity category. and continue taking an exposure into Indian equities as we maintain our neutral stance on them. As far as the new entrants are concerned. the funds in each category are filtered depending on two major measures: (i) The fund should have been in existence for at least three years and. As far as debt funds are concerned. A piece of advice to our investors who have got into the funds recently: Hold onto it for some more time before pressing the exit button. inflation. an important exercise that we undertake before starting work on the recommended funds is to meet up with a majority of the fund houses to get acquainted with all the products that they have and the fund management’s views on the strategies. In the income category. we have decided to move out of 2 funds belonging to the DSP BlackRock Mutual Fund family namely DSP BlackRock Top 100 Equity Fund and DSP BlackRock Small and Mid Cap Fund. Gradually. Canara Robeco Mutual Fund first entered our recommended funds list in 2011 with Canara Robeco Floating Rate followed by Canara Robeco Equity Tax Saver in 2012 after which the income fund – Canara Robeco Income featured in our list in 2013. 10 are replacements while 3 of them are new entrants. Finally.

There is always a debate in the industry regarding domestic and foreign fund houses. If Fidelity and Morgan Stanley decided to take an exit route.com if you have any queries on any of our funds. it also calms down in a few days. We consider this fund to be our find and are happy to see it being accepted across the investor community in the last 1 year. No. and legal advice before making an investment or any other decision.U67190MH2008FTC183495.Mirae Asset India Opportunities Fund has been a part of our recommended funds list while this year their midcap fund. The exits in the last 2 years are creating confusion in the minds of investors if they should go ahead with the foreign fund houses or not. Mirae’s flagship fund . AMFI Reg. Gopal Agrawal and his team continues to put good performance on the table year after year and it is only a matter of time before investors start making these funds a part of their core portfolio. They always need to keep in mind that though the market might react to any sudden news. or be materially interested in any such.INA000000763 . No. No investment decision should be taken without first viewing a mutual fund's offer document/scheme additional information/scheme information document.(ARN) . Since 2012. purchase or sale of any mutual fund. iFAST Financial India Pvt Ltd iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual funds of any of the Asset Management Company mentioned or referred to in the article. Mirae Asset Emerging Bluechip Fund has competed with the goliaths in the industry to become the best performer. Company Reg.com *From 9am to 6pm on Monday to Friday (excluding PH) Follow Us At Connect with us through the following social media platforms! Visit our Twitter account Visit our Facebook account Share via RSS Visit our Youtube account FSM Mobile App Stay on top of markets and mutual funds with Fundsupermart’s mobile application specially designed for investors of the fast-moving mutual fund industry! It's free! Get the app Home |About Us|Privacy Policy|Investment Account Terms and Conditions © 2013. All Rights Reserved. Comments (0) | Comment on this Article (Click on Comments/Comment on this Article to show or hide comments/post a comment) USEFUL LINKS Recommended Funds Recommended Portfolios Chart Centre Risk Profiler Pages Open an Account Why Fundsupermart Buy Mutual Funds Client Investment Specialist Flexi SIP NAV For Further Assistance +91 22 4219 9494* LIVE CHAT* clienthelp. iFAST Investment Advisory Divison has never made a distinction between the 2 while recommending funds. Renu Pothen is Research Head. tax. Dr. we have been very positive on Mirae Asset Mutual Fund and PineBridge Investments. We wish all our investors a Happy and Prosperous 2014! Please feel free to get back to us on research.ind@ifastfinancial. in our last year’s note we had written about the transition that happened at PineBridge Investments and the confidence that we had placed in the fund house. The value of mutual funds and the income from them may fall as well as rise. SEBI Reg. Investment Advisory Division.com investmenthelp@fundsupermart. Our advice to investors is to stay invested in their portfolios and not lose faith. Finally. This article is not to be construed as an offer or solicitation for the subscription.in@fundsupermart. No. Please read our disclaimer in the website. and may from time to time add or dispose of. Investors should seek for professional investment. Conclusion 2014 will be filled with noises right from NaMo in Delhi to Yellen in the US and it is not possible to stay immune to all of it. In this space.67218. Although we introduced PineBridge Infrastructure & Economic Reform Fund in our recommended funds in 2012. Past performance and any forecast is not necessarily indicative of the future or likely performance of the mutual fund. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice. . it was their short term fund that we placed a big bet on and it turned out to be the best performer during times of huge volatility in the model. then we should also remember that others like Schroders and Invesco are placing their faith in the domestic market. because we believe that “survival of the fittest” is best applied in the mutual fund industry.