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5 mutual fund schemes that returned 20%-plus over 3 years

( 17:11, 22-Jun-16)

Mid-cap stock valuations have risen sharply over the last couple of years making them expensive compared to the largecap stocks. The Nifty Midcap 150 now trades at a PE of 34.68 which is at a sharp premium in comparision to the Nifty 50 PE of 22.43. Financial planners believe investors should play safe by staying with large-cap oriented equity mutual funds. ET takes you through five such mutual fund schemes that have given an annualised return of more than 20 per cent over the last three years.

SBI Bluechip Fund AUM: Rs 6,344 crore, No. of stocks: 50, 3-year return: 22.15 per cent, Fund manager: Sohini Andani, Top holdings: HDFC Bank, Infosys, Reliance

A conservative growth-oriented fund, with a small exposure to midcap stocks. A good performance led to a sharp jump in assets. The fund was one of the early ones to shun PSU banks. This strategy along with going overweight on automobiles and cement helped the fund come out as a winner.

Quantum Long Term Equity Fund AUM: Rs 515 crore, No. of stocks: 26, 3-year return: 19.94 per cent, Fund manager: Atul Kumar and Nilesh Shetty, Top holdings: Bajaj Auto, Infosys, Hero Motocorp

The fund follows a value investing style and is one of the few funds which do not hesitate to book profit and take cash calls. Post the euphoria of a Modi-led government not being accompanied by a rise in earnings, the fund booked profits. As the market corrected in 2015-16, the fund prune its cash allocation to 5 per cent, which helped it come back amongst the top performers.

DSP Focus 25 Fund AUM: Rs 1,466 crore, No. of stocks: 26, 3-year return: 20.19 per cent, Fund manager: Harish Zaveri and Jay Kothari, Top holdings: IndusInd Bank, HDFC Bank, Infosys

The fund manager follows a bottom-up approach and does not hesitate from taking concentrated bets. Staying away from debt-laden companies helped deliver good returns in the last couple of years. The fund stayed away from PSU banks and remained overweight on private banks and NBFC. Select automobile stocks and exposure to cement helped performance.

Birla Sun Life Top 100 Fund AUM: Rs 1,951 crore, No. of stocks: 73, 3-year return: 20.83 per cent, Fund manager: Mahesh Patil, Top holdings: HDFC Bank, Infosys, Reliance Invests predominantly in quality large-cap stocks, with mid-cap holdings staying at about 10 per cent of its portfolio. Wealth managers recommend this fund to conservative equity investors for its consistency of returns and low-risk approach. Due to the sharp rise in valuations, the fund has reduced exposure to banking sector and stayed with only private banks.

Reliance Top 200 Fund AUM: Rs 2,137 crore, No. of stocks: 33, 3-year return: 20.07 per cent, Fund manager: Ashwani Kumar and Sailesh Raj Bhan, Top holdings: HDFC Bank, SBI, Larsen & Toubro

A large-cap fund which buys growth at a reasonable price. Many distributors recommend it as a core portfolio for investors who begin investing into equity mutual funds. The portfolio is concentrated with the top 10 stocks accounting for 52 per cent of the portfolio. The fund manager is playing the domestic economic recovery theme. 

Source: Economic Times

 

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