There are close to 3,000 mutual funds schemes in the Rs16.5-trillion Indian mutual funds industry. If you think that zeroing down to a scheme or two to invest in, from this vast list, is like trying to solve a jigsaw puzzle the size of a football field, then you’re not alone.
Going into the details, there are about 675 debt funds, 524 equity funds, 23 gold funds, 41 international funds and 18 arbitrage funds. And we haven’t even counted the 1,000 or so fixed maturity plans that exist at the moment, though not all of them are necessarily open for subscription.
So how do you go about picking the right mutual fund schemes?
Enter Mint50. This is Mint’s curated list of 50 mutual fund schemes across categories, which we shortlist after extensive research of the mutual fund universe to bring you a list of schemes that aim to give you reasonably consistent returns, follow a strategy taking measured risks, and are managed by experienced fund managers.
We had started Mint50 in January 2010. How have we done since then?
We checked out the past 5-year performances of the schemes that have been present in Mint50 before this year’s update. For short-term bonds, we checked their last year’s performance. Of the 50 schemes, five were passively managed. As their mandate is to mimic the stock market index, and not outperform it, we leave those out. Of the remaining, 76% of the schemes outperformed their category averages. There were 43 schemes in our basket that we could ascribe some commonly acceptable benchmark indices to. Of these schemes, 91% outperformed these benchmark indices.
This year’s changes are probably the biggest in recent years, on account of extended market volatility and changes in fund managers. Read more about these schemes—which are in and which are out—below.
One scheme that went out of Mint50 more than a year ago is back, thanks to a revamp in its strategy. Let’s meet them, shall we?