To help you create a well-rounded MF portfolio, Moneycontrol personal finance filtered a crisp set from a list of over 1,000 MF schemes.
There are 1,554 MF schemes in the market. Even if you remove 522 closed-end schemes, you are still left with close to a 1000 funds to scan and decide. Even if you break them into three broad categories, you have 351 equity, 313 debt and 140 hybrid funds on offer. Making choices among passive funds isn’t easier either. There are 49 index schemes and 11 gold exchange-traded funds (ETFs). In addition, there are 97 other equity, debt and international ETFs.
Moneycontrol has curated basket of 30 hand-picked MF schemes for you to choose from (MC30). That is not to say you must invest in all the 30 schemes. Instead, you should invest in just 6-10 MF schemes to build a strong investment portfolio.
MC30 Mutual Funds
| Large Cap (Core) | Canara Robeco Bluechip Equity Fund – Regular Plan – Growth |
| Mirae Asset Large Cap Fund – Regular – Growth | |
| Flexi Cap (Core) | |
| Kotak Flexi Cap Fund – Growth | |
| Parag Parikh Flexi Cap Fund – Growth | |
| UTI Flexi Cap Fund – Growth | |
| Mid Cap (Core) | Axis Midcap Fund – Growth |
| DSP Midcap Fund – Regular Plan – Growth | |
| Invesco India Mid Cap Fund – Growth | |
| Kotak Emerging Equity – Growth | |
| Small Cap (Satellite) | Axis Small Cap Fund – Growth |
| SBI Small Cap Fund – Regular Plan – Growth | |
| ELSS (Core/Satellite) | Canara Robeco Equity Tax Saver – Regular Plan – Growth |
| Kotak Tax Saver Scheme – Growth | |
| Focused (Satellite) | Axis Focused 25 Fund – Growth |
| SBI Focused Equity Fund – Regular Plan – Growth | |
| Aggressive Hybrid (Core) | Canara Robeco Equity Hybrid Fund – Regular Plan – Growth |
| DSP Equity & Bond Fund – Regular Plan – Growth | |
| Short Term (Core) | Axis Short Term Fund – Growth |
| HDFC Short Term Debt Fund – Growth | |
| ICICI Prudential Short Term Fund – Growth | |
| Corporate Bond (Core) | HDFC Corporate Bond Fund – Growth |
| Sundaram Corporate Bond Fund – Growth | |
| Banking and PSU Debt (Core) | IDFC Banking & PSU Debt Fund – Regular Plan – Growth |
| Kotak Banking and PSU Debt Fund – Growth | |
| Nippon India Banking & PSU Debt Fund – Regular Plan – Growth | |
| Index Funds/ETFs | ICICI Prudential Nifty Next 50 Index Fund – Growth |
| Motilal Oswal Nasdaq 100 ETF (MOSt Shares NASDAQ 100) | |
| Nippon India ETF Gold BeES | |
| Nippon India ETF Nifty BeES | |
| UTI Nifty Index Fund – Growth |
MC30 Mutual fund Returns:
| Large Cap (Core) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Canara Robeco Bluechip Equity Fund – Regular Plan – Growth | 19.02 | 16.8 | 15.46 |
| Mirae Asset Large Cap Fund – Regular – Growth | 15.89 | 16.08 | 17.76 |
| Category Average | 14.99 | 13.51 | 14.15 |
| Flexi Cap (Core) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Kotak Flexi Cap Fund – Growth | 14.62 | 14.52 | 17.19 |
| Parag Parikh Flexi Cap Fund – Growth | 24.36 | 21.44 | N/A |
| UTI Flexi Cap Fund – Growth | 20.6 | 18.36 | 17.63 |
| Category Average | 16.34 | 14.46 | 15.02 |
| Mid Cap (Core) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Axis Midcap Fund – Growth | 22.61 | 20.61 | 21.07 |
| DSP Midcap Fund – Regular Plan – Growth | 18.24 | 15.73 | 18.32 |
| Invesco India Mid Cap Fund – Growth | 18.63 | 17.24 | 19.18 |
| Kotak Emerging Equity – Growth | 21.31 | 17.47 | 20.74 |
| Category Average | 18.92 | 15.65 | 18.02 |
| Small Cap (Satellite) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Axis Small Cap Fund – Growth | 27.46 | 21.06 | N/A |
| SBI Small Cap Fund – Regular Plan – Growth | 20.64 | 21.93 | 24.86 |
| Category Average | 18.7 | 16.19 | 17.27 |
| ELSS (Core/Satellite) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Canara Robeco Equity Tax Saver – Regular Plan – Growth | 20.78 | 18.56 | 16.56 |
| Kotak Tax Saver Scheme – Growth | 17.47 | 15.1 | 15.55 |
| Category Average | 16.29 | 14.76 | 15.58 |
| Focused (Satellite) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Axis Focused 25 Fund – Growth | 16.95 | 18.26 | N/A |
| SBI Focused Equity Fund – Regular Plan – Growth | 18.9 | 17.34 | 18.11 |
| Category Average | 15.63 | 14.27 | 15.05 |
| Aggressive Hybrid (Core) | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| Canara Robeco Equity Hybrid Fund – Regular Plan – Growth | 16.65 | 14.4 | 15.11 |
| DSP Equity & Bond Fund – Regular Plan – Growth | 16.33 | 13.54 | 14.1 |
| Category Average | 14 | 12.29 | 13.43 |
| Short Term (Core) | 1 Y (%) | 2 Y (%) | 3 Y (%) |
| Axis Short Term Fund – Growth | 5.23 | 7.57 | 8.43 |
| HDFC Short Term Debt Fund – Growth | 5.9 | 8.21 | 8.8 |
| ICICI Prudential Short Term Fund – Growth | 5.86 | 8.03 | 8.61 |
| Category Average | 5.37 | 6.36 | 6.23 |
| Corporate Bond (Core) | 1 Y (%) | 2 Y (%) | 3 Y (%) |
| HDFC Corporate Bond Fund – Growth | 6.11 | 8.26 | 9.37 |
| Sundaram Corporate Bond Fund – Growth | 5.63 | 8.14 | 9.59 |
| Category Average | 5.63 | 6.71 | 8.47 |
| Banking and PSU Debt (Core) | 1 Y (%) | 2 Y (%) | 3 Y (%) |
| IDFC Banking & PSU Debt Fund – Regular Plan – Growth | 5.3 | 7.92 | 9.63 |
| Kotak Banking and PSU Debt Fund – Growth | 5.68 | 7.85 | 9.1 |
| Nippon India Banking & PSU Debt Fund – Regular Plan – Growth | 5.63 | 7.96 | 9.18 |
| Category Average | 5.28 | 7.4 | 8.57 |
| Index Funds/ETFs | 3 Y (%) | 5 Y (%) | 10 Y (%) |
| ICICI Prudential Nifty Next 50 Index Fund – Growth | 11.7 | 12.97 | 15.25 |
| Motilal Oswal Nasdaq 100 ETF (MOSt Shares NASDAQ 100) | 28.83 | 28.75 | 27.05 |
| Nippon India ETF Gold BeES | 14.34 | 7.06 | 4.12 |
| Nippon India ETF Nifty BeES | 15.61 | 15.64 | 14.32 |
| UTI Nifty Index Fund – Growth | 15.36 | 15.38 | 13.85 |
MC30 – the methodology behind curated basket
Despite SEBI having rolled out 37 categories, we decided to limit MC30 to just 11 categories. The idea behind MC30 is to recommend only simple, diversified and easy-to-understand funds.
- Thematic and sector funds are out because they are too risky for a common investor.
- We also left out Value and Contra funds because the definitions are too subjective.
- We have also left out the “Large & Mid-cap” category since one scheme in this category can look very different from another. A flexi-cap category is a better alternative as it gives a fund manager the freedom to choose stocks.
Similarly, on the debt funds side, we have kept things simple. Since this is an investment basket, we will only recommend short-term, corporate bond and Banking & PSU Debt funds. In our opinion, they are good enough for your fixed income allocation.
- Liquid, overnight and similar funds are more parking vehicles for the short term than being investment avenues. Hence, we’ve left such categories out. L
- Long-term bond funds and government securities can be volatile; a sudden interest rate reversal can wipe out an entire year’s gains. They are excluded from the MC30
There are six types of Hybrid funds. But MC30 has just one – aggressive hybrid
In MC30, five spots will be permanently reserved for passively-managed index and exchange-traded funds (ETFs).