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Top 5 Mutual Funds That Will Balance Your Portfolio of Rs 1 Lakh

Total Amount: Rs 1,00,00.00

Mutual Funds:
1) UTI Nifty Index Fund – Direct Plan – Growth (15%)
2) Axis Long Term Equity Fund – Growth (15%)
3) DSP Arbitrage Fund – Direct Plan – Growth (20%)
4) Canara Robeco Bluechip Equity Fund – Regular Plan – Growth (10%)
5) DSP Banking & PSU Debt Fund – Regular Plan – Growth (40%)


1) UTI Nifty Index Fund (Rs 15,000)

Fund Manager: Mr. Sharwan Kumar Goyal, CFA, MMS
Scheme Details: Click Here

Fund Size: Rs 2362.15 Cr

Risk: Moderately High

Crisil Ranking: 3 out of 5

Date Started:

Key Points:

  • Portfolio consists of Nifty’s Top 10 Stocks (by Market Capitalization) along with 51 other stocks. 89.36% of the portfolio consists of large cap stocks.
  • It is the largest fund in terms of assets managed when compared with its peers.
  • Fund was started in March, 2000

2) Axis Long Term Equity Fund – Growth (Rs 15,000)

Fund Manager: Jinesh Gopani

Scheme Details: Click here

Fund Size: Rs 20291.65 Cr

Risk: Moderately High

Crisil Ranking: 5 out of 5

Key Points:

  • Fund has 93.44% investment in indian stocks of which 62.94% is in large cap stocks, 16.49% is in mid cap stocks, 5.66% in small cap stocks.Fund has 0.13% investment in Debt of which , 0.13% in funds invested in very low risk securities.
  • It is the largest fund in terms of assets managed when compared with its peers.
  • Fund was started in January, 2013

3) DSP Arbitrage Fund – Direct Plan – Growth (Rs 20,000)

Fund Manager: Kedar Karnik , M. Suryanarayanan
Scheme Details: Click Here
Fund Size: Rs 1,146.47 Cr

Risk: Moderately Low

Crisil Ranking: 3 out of 5

Key Features:

  • Fund has 65.35% investment in indian stocks of which 56% is in large cap stocks, 8.99% is in mid cap stocks, 0.36% in small cap stocks.Fund has 4.43% investment in Debt of which , 4.43% in funds invested in very low risk securities.
  • Low risk and volatility
  • Good Performance Track record since inception (Jan-18)

4) Canara Robeco Bluechip Equity Fund – Regular Plan – Growth (Rs 10,000)

Fund Manager: Shridatta Bhandwaldar, Mr. Sanjay Bembalkar

Scheme Details: Click Here
Fund Size: Rs 533.11 Cr

Risk: Moderately High

Crisil Ranking: 5 out of 5

Key Features:

  • Fund has 94.49% investment in indian stocks of which 76.24% is in large cap stocks, 9.13% is in mid cap stocks.
  • Good Credit Rating Track record
  • Fund was started in August 2010

5) DSP Banking & PSU Debt Fund – Regular Plan – Growth (Rs 1,90,000)

Fund Manager: Vikram Chopra, Saurabh Bhatia

Scheme Details: Click Here
Fund Size: Rs 3142.66  Cr

Risk: Moderate

Crisil Ranking: 5 out of 5

Key Features:

  • Fund has 99.48% investment in Debt of which 11.34% in Government securities, 88.14% in funds invested in very low risk securities.
  • Portfolio consists of AAA bonds and NCDs (lowest credit risk)
  • Fund was started in Sept 2013

Capital Allocation

40% capital has been allocated to Blue Chip Equity divided into 3 funds. The proportion has been categorized to reduce risk. Benchmark Index Nifty is expected to grow at 7-8% YoY. These funds may outperform the index. These funds are moderately risky, thereby 40% capital has been allocated to Debt Fund. With good credit record and portfolio, this fund will be able to protect capital from unidentified risks. Remaining 20% of the capital has been allocated to an arbitrage fund. The fund chosen has grown consistently without any major price fluctuations. This fund will be able to further balance the portfolio.

Briefing

The above mentioned mutual funds have been selected on the basis of their historical performances, fund size, fund manager experiences and their credit score. 40% of the capital has been allotted to 3 Large Cap equity funds. 20% has been allocated to an arbitrage fund and 40% has been allocated to 1 Debt Fund. Keeping in mind about the volatility in current situation, one debt fund has been given heavy weightage which would be able to reduce any unidentified risks. On a personal note, for the next 2-3 quarters, markets will remain volatile. Bullish sentiments are prevailing in markets but key factors can’t be ignored. Healthy returns can be seen after 12-18 months. India has been getting heavy investment opportunities due to US-China trade war. Overall, it can be said that investing scenario now is improving than what it was before 3 months. The debt mutual fund selected above has all AAA (highest safety and lowest credit risks) Bonds and NCDs. If you prefer alternative to these mutual funds, you can go for Nifty Gold ETFs (Exchange Traded Funds). Gold ETFs have flourished during this pandemic.

Disclaimer: I have made these recommendations based on my personal research and studies. Viewers are advised to make their financial decisions after consulting their financial advisor/planner.

Thank You for Reading

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