A Simple Way To Select The Best Indian Equity Mutual Funds

This post will outline a simple method to identify good mutual funds to select for investing. The steps are as follows:

The first step is to go to Morningstar.in and then get the list of medalist funds. These are the funds ranked gold, silver or bronze. This is based on Morningstar Analyst Rating. Essentially it  is based on the analyst’s conviction in the fund’s ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over the long-term. If a fund receives a positive rating of Gold, Silver, or Bronze, it means Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years.

The second step is to go to both Morningstar India and Value Research Online and get the star ratings for each of these funds. The star rating is based on the fund’s past performance as compared to peers. Select the funds which have 4 or 5 star rating.

The third step is to list these funds, in which we can then invest with a fair amount of confidence. Invest in the direct plan and the growth option to get better returns.

The list of these funds as of today are:

Large Cap

  • Birla Sun Life Frontline Equity Fund Growth
  • ICICI Prudential Focused Blue Chip Equity Fund Growth
  • Reliance Top 200 Fund Growth
  • Franklin India Blue Chip Fund Growth

Mid Cap

  • Franklin India Prima Fund Growth
  • SBI Magnum Global Fund Growth

Multi-Cap

  • Franklin India High Growth Companies Fund Growth
  • Franklin India Prima Plus Fund Growth
  • ICICI Prudential Value Discovery Fund Growth
  • Franklin India Flexi Cap Fund Growth

Small Cap

  • DSP BlackRock Micro Cap Fund Growth
  • Franklin India Smaller Companies Fund Growth

I hope you find this method useful. Happy Investing.

God Bless.

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