A mutual fund is a professionally managed investment fund
that pools money from many investors to purchase securities. These investors
may be retail or institutional in nature.
Following is the list of the top Mutual
Funds India has in terms of Assets under management in descending order.
A lot of investors consider AUM as an important factor while taking investment
decisions when comparing between similar schemes of two or more fund houses.
Fund Houses themselves use AUM as a marketing tool to attract investors.
AUM is an indicator of a company’s operations relative to its competitors.
|
AUM
|
(₹ Cr.)
|
|
HDFC Mutual
Fund
|
362762.79
|
|
ICICI
Prudential Mutual Fund
|
338768.2
|
|
SBI Mutual
Fund
|
307841.17
|
|
Birla Sun
Life Mutual Fund
|
254181.98
|
|
Reliance
Mutual Fund
|
223271.93
|
|
Kotak
Mahindra Mutual Fund
|
161381.68
|
|
UTI Mutual
Fund
|
157865.86
|
|
Franklin
Templeton Mutual Fund
|
126034.46
|
|
Axis Mutual
Fund
|
102267.4
|
|
IDFC Mutual
Fund
|
82493.29
|
|
DSP Mutual
Fund
|
77619.03
|
|
L&T
Mutual Fund
|
73496.7
|
|
Tata Mutual
Fund
|
53640.7
|
|
Sundaram
Mutual Fund
|
31220.13
|
|
Mirae Asset
Mutual Fund
|
29260.92
|
|
Invesco
Mutual Fund
|
24647.9
|
|
Motilal Oswal
Mutual Fund
|
19694.49
|
|
LIC Mutual
Fund
|
16293.94
|
|
Canara Robeco
Mutual Fund
|
15886.68
|
|
Edelweiss
Mutual Fund
|
12128.22
|
|
HSBC Mutual
Fund
|
12039.7
|
|
Baroda Mutual
Fund
|
11180.52
|
|
JM Financial
Mutual Fund
|
7710.09
|
|
Principal
Mutual Fund
|
7279.79
|
|
BNP Paribas
Mutual Fund
|
7243.52
|
|
IDBI Mutual
Fund
|
6486.44
|
|
DHFL
Pramerica Mutual Fund
|
5411.56
|
|
Mahindra
Mutual Fund
|
4971.83
|
|
Indiabulls
Mutual Fund
|
4529.96
|
|
Union Mutual
Fund
|
4307.03
|
|
BOI AXA
Mutual Fund
|
3127.89
|
|
PPFAS Mutual
Fund
|
2116.02
|
|
IIFL Mutual
Fund
|
1522.58
|
|
Quantum
Mutual Fund
|
1513.64
|
|
YES Mutual
Fund
|
1421.44
|
|
Essel Mutual
Fund
|
1040.54
|
|
Taurus Mutual
Fund
|
434.87
|
|
Quant Mutual
Fund
|
216.74
|
|
Shriram
Mutual Fund
|
132.57
|
|
ITI Mutual
Fund
|
66.5
|
|
Sahara Mutual
Fund
|
53.87
|
The mutual fund industry was open to private sector competition in 1993.
The erstwhile Kothari Pioneer Mutual Fund (now Franklin Templeton Mutual Fund)
launched Prima Fund and Bluechip Fund on December 1, 1993.
|
Scheme Name
|
Inception date
|
|
|
|
UTI mastershare Reg(D)
|
15-Oct-86
|
|
|
SBI Magnum Equity ESG Fund Reg(D)
|
01-Jan-91
|
|
|
UTI Equity Fund Reg(D)
|
18-May-92
|
|
|
Tata Large and Mid cap fund (G)
|
25-Feb-93
|
|
|
SBI Large and Mid cap fund Reg(D)
|
28-Feb-93
|
|
|
Canara Rob Equity Tax Saver Fund Reg(D)
|
31-Mar-93
|
|
|
SBI Magnum Taxgain 93 Reg (D)
|
31-Mar-93
|
|
|
Franklin india blue chip (G)
|
01-Dec-93
|
|
|
Franklin india prima fund(G)
|
01-Dec-93
|
|
There are three primary structures of mutual
funds: open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange.
Open-end mutual funds must be willing to buy back
("redeem") their shares from their investors at the net asset
value (NAV) computed that day based upon the prices of the securities
owned by the fund. Most open-end funds also sell shares to the public every
business day; these shares are priced at NAV.
Closed-end funds generally issue shares to the
public only once, when they are created through an initial public offering. Their shares are then listed for
trading on a stock exchange. Investors
who want to sell their shares must sell their shares to another investor in the
market; they cannot sell their shares back to the fund. The price that
investors receive for their shares may be significantly different from NAV; it
may be at a "premium" to NAV (i.e., higher than NAV) or, more
commonly, at a "discount" to NAV (i.e., lower than NAV).
Unit investment trusts (UITs) are issued to the public
only once when they are created. UITs generally have a limited life span,
established at creation. Investors can redeem shares directly with the fund at
any time (similar to an open-end fund) or wait to redeem them upon the trust's
termination. Less commonly, they can sell their shares in the open market.
Unlike other types of mutual funds, unit investment trusts
do not have a professional investment manager. Their portfolio of securities is
established at the creation of the UIT.
Exchange-traded funds (ETFs) are structured as
open-end investment companies or UITs. ETFs combine characteristics of both
closed-end funds and open-end funds. ETFs are traded throughout the day on a
stock exchange. An arbitrage mechanism
is used to keep the trading price close to net asset value of the
ETF holdings.
Mutual funds are normally classified by their principal
investments, as described in the prospectus and investment objective. The four
main categories of funds are money market funds, bond or fixed income funds,
stock or equity funds, and hybrid funds. Within these categories, funds may be
sub-classified by investment objective, investment approach or specific focus.
Debt funds invest in fixed income or debt securities. Debt funds can be
sub-classified according to:
·
The
specific types of bonds owned (such as high-yield or junk bonds,
investment-grade corporate bonds, government bonds )
·
The
maturity of the bonds held (i.e., short-, intermediate- or long-term)
·
The tax
treatment of the interest received (taxable or tax-exempt)
|
Debt Funds
|
Characteristics
|
Few recommended funds
|
|
Gilt funds
|
Minimum investment in Gsecs-
80% of total assets (across maturity)
|
Edelweiss Government Securities Fund
Aditya Birla Sun Life Government Securities
Fund
DSP Govt Sec Fund
IDFC G Sec Fund - Investment Plan
DHFL Pramerica Gilt Fund
ICICI Prudential Gilt Fund
|
|
Banking & PSU funds
|
Minimum investment in Debt
instruments of banks, Public Sector Undertakings, Public Financial
Institutions- 80% of total assets
|
Axis Banking & PSU Debt Fund
IDFC Banking & PSU Debt Fund
DSP Banking & PSU Debt Fund
LIC MF Banking & PSU Debt
Sundaram Banking & PSU Debt Fund
|
|
Credit Risk funds
|
Minimum investment in corporate
bonds- 65% of total assets (investment in below highest rated instruments)
|
IDFC Credit Risk Fund
Axis Credit Risk Fund
Franklin India Credit Risk Fund
Kotak Credit Risk Fund
Principal Credit Risk Fund
|
|
Corporate Bond funds
|
Minimum investment in corporate bonds- 80% of total assets (only in
highest rated instruments)
|
IDFC Corporate Bond Fund
L&T Triple Ace Bond Fund
HDFC Corporate Bond Fund
Invesco India Corporate Bond Fund
Sundaram Corporate Bond Fund
|
|
Dynamic Bond funds
|
Investment across duration
|
DHFL Pramerica Dynamic Bond Fund
Quantum Dynamic Bond Fund
Franklin India Dynamic Accrual Fund
IDFC Dynamic Bond Fund
Kotak Dynamic Bond Fund
|
|
Medium to Long Duration funds
|
Investment in Debt & Money Market instruments such that the
Macaulay duration of the portfolio is between 4 - 7 years
|
Reliance Income Fund
ICICI Prudential Bond Fund
LIC MF Bond Fund
Aditya Birla Sun Life Income Fund
Canara Robeco Income Fund
|
|
Medium Duration funds
|
Investment in Debt & Money Market instruments such that the
Macaulay duration of the portfolio is between 3 years - 4 years
|
IDFC Bond Fund -Medium Term Plan
Axis Strategic Bond Fund
Franklin India Income Opportunities Fund
HDFC Medium Term Debt Fund
DSP Bond Fund
|
|
Short Duration funds
|
Investment in Debt & Money
Market instruments such that the Macaulay duration of the portfolio is
between 1 year - 3 years
|
DSP Short Term Fund
IDFC Bond Fund - Short Term
L&T Short Term Bond Fund
Canara Robeco Short Duration Fund
HDFC Short Term Debt Fund
|
|
Money Market funds
|
Investment in Money Market
instruments having maturity upto 1 year
|
Reliance Money Market
Aditya Birla Sun Life Money Manager Fund
Franklin India Savings Fund
HDFC Money Market Fund
DSP Savings Fund
|
|
Low Duration funds
|
Investment in Debt & Money Market instruments such that the
Macaulay duration of the portfolio is between 6 months- 12 months
|
Canara Robeco Savings Fund
IDFC Low Duration Fund
DSP Low Duration Fund
HDFC Low Duration Fund
ICICI Prudential Savings Fund
|
|
Ultra Short Duration funds
|
Investment in Debt & Money
Market instruments such that the Macaulay duration of the portfolio is
between 3 months - 6 months
|
L&T Ultra Short Term
Fund
Kotak Savings Fund
SBI Magnum Ultra Short Duration Fund
Aditya Birla Sun Life Savings Fund
Franklin India Ultra Short Bond Fund
|
|
Liquid funds
|
Investment in Debt and money
market securities with maturity of upto 91 days only
|
IDFC Cash Fund
Indiabulls Liquid Fund
Kotak Liquid
Baroda Liquid Fund
DSP Liquidity Fund
|
Stock or equity funds invest in common stocks. Stock funds may
focus on a particular area of the stock market, such as
·
Stocks
from only a certain industry
·
Stocks
from a specified country or region
·
Stocks of
companies experiencing strong growth
·
Stocks
that the portfolio managers deem to be a good value relative
to the value of the company's business
·
Stocks
paying high dividends that provide income
·
Stocks
within a certain market capitalization range
|
Equity funds
|
Characteristics
|
Few recommended funds
|
|
Large Cap funds
|
Minimum investment in equity & equity related instruments of large
cap companies- 80% of total assets
|
HDFC Top 100 Fund
Reliance Large Cap Fund
Mirae Asset Large Cap Fund
Axis Bluechip Fund
ICICI Prudential Bluechip
Fund
|
|
Large & Mid Cap funds
|
Minimum investment in equity
& equity related instruments of large cap companies- 35% of total assets
Minimum investment in equity & equity related instruments of mid cap
stocks- 35% of total assets
|
Invesco India Growth
Opportunities Fund
Canara Robeco Emerging Equities
Kotak Equity Opportunities Fund
SBI Large & Midcap Fund
DSP Equity Opportunities Fund
|
|
Multi Cap funds
|
Minimum investment in equity
& equity related instruments- 65% of total assets
|
HDFC Equity Fund
ICICI Prudential Multicap Fund
Canara Robeco Equity Diversified
Reliance Multicap Fund
DSP Equity Fund
|
|
Mid Cap funds
|
Minimum investment in equity & equity related instruments of mid
cap companies- 65% of total assets
|
Axis Midcap Fund
Invesco India Mid Cap Fund
DSP Midcap Fund
Franklin India Prima Fund
Reliance Growth Fund
|
|
Small Cap funds
|
Minimum investment in equity
& equity related instruments of small cap companies- 65% of total assets
|
HDFC Small Cap Fund
L&T Emerging Businesses Fund
SBI Small Cap Fund
Aditya Birla Sun Life Small Cap Fund
DSP Small Cap Fund
Franklin India Smaller Companies Fund
|
|
Value/Contra funds
|
Scheme should follow a value investment strategy. Minimum investment
in equity & equity related instruments - 65% of total assets
|
Kotak India EQ Contra Fund
HDFC Capital Builder Value Fund
Invesco India Contra Fund
Reliance Value Fund
IDFC Sterling Value Fund
|
|
Focused funds
|
A scheme focused on the number
of stocks (maximum 30). Minimum investment in equity & equity related
instruments - 65% of total assets. Funds will mention where the scheme
intends to focus, viz.,multi cap, large cap, mid cap, small cap
|
Franklin India Focused Equity Fund
SBI Focused Equity Fund
Sundaram Select Focus
Aditya Birla Sun Life Focused Equity Fund
Axis Focused 25 Fund
ICICI Prudential Focused Equity Fund
|
|
Thematic - Infrastructure funds
|
Minimum investment in equity
& equity related instruments of a particular sector/ particular theme-
80% of total assets
|
Franklin Build India Fund
LIC MF Infrastructure Fund
DSP India T.I.G.E.R. Fund
ICICI Prudential Infrastructure Fund
Invesco India Infrastructure Fund
|
|
Equity Linked Savings Schemes (ELSS)
|
Minimum investment in equity
& equity related instruments - 80% of total assets. An open ended equity
linked saving scheme with a statutory lock in of 3 years and tax benefit
|
Canara Robeco Equity Tax Saver
Mirae Asset Tax Saver Fund
Taurus Taxshield
Aditya Birla Sun Life Tax Relief 96
ICICI Prudential Long Term Equity Fund (Tax Saving)
Kotak Tax Saver Scheme
|
|
Index funds
|
An index fund is a type of mutual fund with a portfolio constructed to
match or track the components of a financial market index, such as the
Standard & Poor's 500 Index (S&P 500). An index mutual fund is said
to provide broad market exposure, low operating expenses and low portfolio
turnover
|
Kotak Nifty ETF
SBI - ETF Nifty 50
SBI - ETF SENSEX
HDFC Sensex ETF
Kotak Sensex ETF
|
Hybrid funds invest in both bonds and stocks or in convertible
securities. Balanced funds, asset allocation funds, target date or target risk
funds, and lifecycle or lifestyle funds are all types of hybrid funds.
Hybrid funds may be structured as funds of funds,
meaning that they invest by buying shares in other mutual funds that invest in
securities. Many funds of funds invest in affiliated funds (meaning mutual
funds managed by the same fund sponsor), although some invest in unaffiliated
funds (i.e., managed by other fund sponsors) or some combination of the two.
|
Hybrid funds
|
Characteristics
|
Few recommended funds
|
|
Aggressive Hybrid funds
|
Equity & Equity related instruments- between 65% and 80% of total
assets; Debt instruments- between 20% 35% of total assets
|
Mirae Asset Hybrid -Equity
Principal Hybrid Equity Fund
Canara Robeco Equity Hybrid Fund
HDFC Hybrid Equity Fund
Sundaram Equity Hybrid Fund
|
|
Conservative Hybrid funds
|
Investment in equity &
equity related instruments- between 10% and 25% of total assets; Investment
in Debt instruments- between 75% and 90% of total assets
|
ICICI Prudential Regular Savings Fund
LIC MF Debt Hybrid Fund
BNP Paribas Conservative Hybrid Fund
Canara Robeco Conservative Hybrid Fund
IDFC Regular Savings Fund
|
|
Arbitrage funds
|
Scheme following arbitrage
strategy. Minimum investment in equity & equity related instruments- 65%
of total assets
|
UTI Arbitrage Fund
IDFC Arbitrage Fund
Kotak Equity Arbitrage Fund
Reliance Arbitrage Fund
DSP Arbitrage Fund
|
Once you have
decided to invest in mutual funds, there are ways to analyse mutual funds such
as looking at each funds past performance history, management team and expense
ratio.
Ask yourself:
Are you looking for
short term or long-term gains?
Does money need to
fund your child’s education or your retirement?
Can you tolerate
ups and downs of your portfolio?
Once investor has
answer to above questions, he/she can choose funds from one or multiple mutual
fund houses as per his goal and risk tolerance.
If you have high
risk tolerance, you can choose funds from Equity funds. You can create a
portfolio with a mix of equity fund, money market, hybrid, Debt.
Example, investor
want to do a SIP of 10000 in three funds, he/she can choose one equity fund
with SIP of 5000, one hybrid fund and debt fund with SIP of 2500.
The key is to
remain disciplined, rational, and avoid being moved by short-term price
movements in the market.
