With more than 1,200 schemes worth Rs19.26 trillion spread across around 45 firms, the Indian mutual funds industry has plenty to offer. The choice is a lot if you wish to make a portfolio of seven to eleven schemes, which is what we recommend. There are more than 400 equity funds, around 300 debt schemes and around 426 hybrid schemes out there. And we’re not even counting the 883 fixed maturity plans (more are being launched as we speak, as many schemes keep winding up or getting rolled over), and between a dozen and three dozen schemes each for international funds, sector funds and arbitrage funds.
Enter Mint50. This is a curated basket of 50 mutual fund schemes that, based on our research are worthy of your money. You don’t need to invest in all the 50—but more on that later.
Every year in February, we update our list. Some schemes go out and an equal number get in. Sometimes, around mid-year, certain events happen that make some schemes a definite sell. Because February of following year may be too late for an update, we come out with a mid-year review. In the 2017 mid-year review, we take out two schemes in the short-term category and two new ones enter in their place. We have also tweaked our strategy on passively managed funds. For some time, we will not recommend exchange-traded funds because of lack of liquidity in many of them, but we will continue with the index funds named in the list, despite slightly higher costs. And finally, two schemes graduate from being in the ‘satellite’ category to the ‘core’ category because of their strategies. They had been down in the dumps for that reason. They have now worked themselves out and these schemes seem set for a good run ahead.
Let’s meet them, shall we?