Best 50 Mutual Funds : Superlative Show

Superlative Show

Last fortnight, returns from equity mutual funds in OLM 50 significantly exceeded those from the indices

In the last two weeks, the Sensex and the Nifty continued to remain in the positive zone, returning 0.73 per cent and 0.61 per cent, respectively. Over the same period, the average return of equity funds in OLM 50 was almost double the index return at 1.21 per cent. DSP BlackRock World Gold Fund and IDFC Premier Equity Fund stole the show, returning 4.98 per cent and 4.09 per cent, respectively. Almost all diversified equity funds in OLM 50 beat the two indices by a wide margin except UTI Dividend Yield, which returned 0.31 per cent.

Portfolio. As per the March 2010 fact sheet, most OLM 50 funds are relying on the banking sector. HDFC Top 200 and HDFC Equity, for example, continue to have more than 20 per cent holding in the sector. Among diversified equity funds in OLM 50, HDFC Equity and DSP BlackRock Top 100 are on top in terms of equity exposure, at around 98 per cent and 97 per cent, espectively.

OLM 50 is a list of our 50 mutual fund scheme recommendations, from among a thousand-plus schemes in the industry, that merit your attention. These schemes have made the cut after going through certain fi lters. OLM 50 is a guide for fresh investments only. Source: mutualfundsindia.com (returns and NAV), Morningstar (star ratings)

1. Less than five years old
2. NAV and returns for dividend plan only
3. Invests significantly in both large- and mid-cap scrips because of which Morningstar rates it in either category. The fund has historically invested in mid-caps and since we feel it suitable for conservative mid-cap investors, we have taken it in the mid-cap category
4. Morningstar has taken the scheme as large-cap for this rating
5. Less than three years old
6. Gold ETFs give similar returns. No scheme has crossed three years
7. This is the average one-year return for all schemes NR: Not rated Returns less than a year are absolute, else compounded annually Morningstar rating for the three-year period as on Dec 09-end NAV and returns as on 13 April 2010

 Source:http://money.outlookindia.com/article.aspx?265217