By Prashant Mahesh | ET Bureau | 8 Jun, 2015, 10.18AM IST | Economic Times
For investors willing to stay invested in stocks for the next 20 years it is important to find mutual fund schemes with a track record. ET identifies five MF schemes which have been in existence for the last 20 years and have returned an average of 20% every year
Reliance Growth Fund
Fund Manager: Sunil Singhania
Primarily a midcap fund with some exposure to large cap stocks, the fund was a favourite of investors during the bull run of 2003-2007, where its assets under management surged rapidly. Though the fund manager was quick to move to cash during the stock market crash in 2008-2009, he was late in deploying it back as the markets recovered. This led to an under-performance in that period. Investors with a higher risk appetite willing to bet on midcaps can take exposure to this fund, said wealth managers.
Franklin India Blue Chip Fund
Fund Managers: Anand Radhakrishnan & Anand Vasudevan
A good scheme for first-time investors in equity mutual funds, analysts recommend it for its consistency and quality of stock picks. Over the last two decades the fund has managed to stick to its philosophy of sticking to bluechips with healthy balance sheets, and has managed to stay away from momentum sectors or stocks. As a result, the scheme tends to underperform in rallies driven by momentum over the short term, but eventually catches up over the long term.
Fund Manager: Prashant Jain
With about Rs 18,000 crore in assets, it is the largest mutual fund equity scheme in the country. The product is one of the rare ones to have the same fund manager for the last 20 years. That is also perhaps one of the biggest selling points of this fund. Jain is trusted by wealth managers for his strong conviction, which is known to play out over a longer period of time. But, its short-term under-performances have frustrated many new investors. Some have raised concern that the fund has lost its nimbleness because of its size. Financial planners recommend this fund only to investors with investment horizon of 5 years and above and those with a higher risk appetite.
Birla Sun Life Advantage Fund
Fund Manager: Satyabrata Mohanty
A multicap fund, it has had its share of ups and downs. The fund went through volatile phases due to high exposure to a few stocks and sectors in its initial phase. It performed well in 1999, led by gains in IT, pharma and FMCG. However, a high 65% exposure to technology led to its gains being erased subsequently. Mohanty claims it has reoriented its focus to now position itself from changing business cycles and believes in identifying growth stocks. The scheme is recommended for high risk takers, looking to ride the economic recovery cycle.
Franklin India Prima Fund
Fund Manager: R Janakiraman
The fund is one of the most consistent performers in the mid and smallcap space. Mid- and small-cap investing is usually considered risky but this scheme has managed to avoid sharp fluctuations in its performance, by and large. The fund manager at times does add some largecap stocks, which could be about 10-15% of its portfolio size to tone down the risk profile. Though it is not the best performing fund, it consistently beats the category average and stays in the top-to-mid rankings of midcap funds. The fund is known to have identified stock winners like Torrent Pharma, Finolex Cables and Amara Raja Batteries in the last three years.
Source : http://goo.gl/7hsl8M