Equity MF buying in 2017 – which ones to buy?

As I discussed in an earlier post, equity is an asset class which will probably perform the best in 2017. While I think it is a good idea to have both an MF and stocks portfolio, for most investors an MF portfolio will be a good place to start. In any case, I think most of my readers are having an MF portfolio and will definitely like to continue the same in 2017.

In this post, let me share the names of a few top funds in different categories which will make a great deal of investment sense in 2017. There are two important things to note here. Firstly, do not get swayed into buying MF through all kinds of statistical analysis and tools. These methods are amateurish even though I daresay they are sincere. Like every industry, the MF industry has professionals who are knowledgeable and neutral. It is very logical to go with their recommendations, reinventing the wheel has always been a rather poor idea. The funds suggested in this post are taken from the TV program “Investors Guide”. Secondly do not change your portfolio just because these funds are not there in it. There are several good MF schemes from different fund houses and changes should only be done when your annual review has shown some funds in your portfolio to be performing poorly. For new MF investors, I think it will make a lot of sense to pick some funds out of the ones mentioned in this post.

Coming to the fund categories, let us start with the multi-cap category. You must have this in your portfolio even if you are having only one category. Based on performance and potential, the following funds are recommended ones :-

  • ICICI Value Discovery fund
  • Franklin India High Growth companies fund
  • Birla Sun Life Equity fund
  • SBI Magnum Multi-cap fund

It will be important to have the mid-cap category fund in your portfolio too as these are the potential large caps of the future. Recommended funds in this category are :-

  • Mirae Asset Emerging Blue chip fund
  • Principal Emerging Blue Chip fund
  • UTI Mid-cap fund
  • Franklin India Prima fund

You also need to have the small cap category fund in your portfolio as, despite the risks, these are likely to reward you substantially in the future. Recommended funds are :-

  • DSP BR Micro cap fund
  • Franklin India Smaller Companies fund
  • Reliance Small cap fund
  • SBI Mid and Small cap fund

Finally the large cap category is important as it is likely to do well in 2017 and it provides some stability to your portfolio. Recommended funds in this category are :-

  • Mirae Asset India Opportunities fund
  • SBI Blue Chip fund
  • Birla Sun Life top 100 fund
  • Quantum Long Term Equity fund

For a good long term MF portfolio you just need to pick a fund from each category and invest in them regularly. You can decide on your allocation based on your risk taking ability, but even if you allocate 25 % of your money to each category, you will be fine.

Should you do SIP – not in general and in 2017 it will be a particularly bad idea. I will explain how you can invest in your portfolio in the next post.

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10 thoughts on “Equity MF buying in 2017 – which ones to buy?

  1. As per one of your post you mentioned about 4 funds in which you are invested and will remain invested till you have active income.
    Are you still in favor of them I noticed you did not mentioned
    1. ICICI focused blue chip – large cap
    2. Hdfc mid cap – mid cap
    In the above lists.

    Are you still invested in them or you are planning to discontinue as per your yearly review?

    Like

  2. As per one of your post you mentioned about 4 funds in which you are invested and will remain invested till you have active income.
    Are you still in favor of them I noticed you did not mentioned
    1. ICICI focused blue chip – large cap
    2. Hdfc mid cap – mid cap
    In the above lists.

    Are you still invested in them or you are planning to discontinue as per your yearly review?

    Like

  3. Sir
    I like your investing approach . Can you do a post on index MF and ETF sometime ? Are they worth the salt – viz. index MF are showing very poor returns over long time and are ETFs really safe or just new fancy instruments ?

    Like

  4. Hi my name is Deepak bhor 29 yrs old married man
    Can you help me out regarding my Mutual fund Portfolio
    My Currnetly Portfolio :

    DSP BR Micro-Cap Fund (G) (Growth) – 1000
    Canara Robeco Emerging Equities (G) (Growth) -1000
    Birla Sun Life Frontline Equity Fund (G) (Growth) -3000
    Mirae Asset Emerging Bluechip Fund (G) (Growth) – 1000
    Tata Balanced Fund – Regular (G) (Growth) -1500
    ICICI Prudential Value Discovery Fund (G) -1000
    ICICI Prudential Focused Bluechip Equity Fund (G) -1000

    I have started my monthly SIP in above mutual fund schemes before one year. As you have seen i have purchased too may schmes
    Investing in too many funds will not help me gain maximum profit,So i have decided to close some scheme
    for e.g I am planning to close either DSP BR Micro-Cap Fund (G) (Growth) – 1000 or
    Canara Robeco Emerging Equities (G) (Growth) -1000 and contine with one schme with monthly sip 2000 Because both the schmes are in Small & Mid cap
    Same in case of Birla Sun Life Frontline Equity Fund (G) (Growth) -3000 & ICICI Prudential Focused Bluechip Equity Fund (G) -1000
    Kindly advice me which should i close and contine.
    My risk taking ability is Moderate and I have a long term wealth creation horizon(10 Years Or More than 10 Years)

    Like

  5. Sir,

    I have 2 doubts

    1. How do you decide asset allocation amongst each fund?
    2. How often you review fund returns and makes decision to switch to other

    Like

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