New year, new aspirations, new goals. This calls for the review of your plans made or actions taken in last year to make necessary changes, if required. Investments are one of an important part of your financial plan and Mutual funds are important part of your investments. So the review of mutual funds’ investments is imperative to fine tune the investment plan.
Before moving ahead with my list of Best mutual funds to invest in 2015 as per my quantitative parameters I would like to put down one disclaimer here. Don’t look at the list of best mutual funds to invest in 2015 as exhaustive one and this is also not any advice from my side. Neither does it mean to redeem your existing funds if they don’t come under this list.
This list of best mutual funds to invest in 2015 is based on parameters like quartile rankings, alpha generation with reference to the benchmark of the fund, on a particular day (1/1/2015). The list may keep varying on day to day, month on month basis due to the volatile nature of equity market , fund manager expertise, portfolio of the fund, economy in general and many other factors .
The further filtering of funds depends on the expense ratio, fund manager tenure, risks associated based on standard deviation etc. where you need to consult your personal adviser or search the fact sheets of the specific fund houses.
Some advisers may consider rolling returns of the fund for final selection. But keep in mind that the best mutual fund to invest in 2015 or to stay invested in your existing funds in 2015 completely depends on your goals targeted and your risk profile. This selection by me can be used for further filtering before finalizing.
Parameters of selecting best mutual funds to invest in 2015:
- Fund should be top quartile in 3 and 5 years tenure
- Fund should have generated alpha in 3 and 5 years tenure
- Same Fund manager should have been managing the fund for at least last 2 years.
- Further you and your adviser can filter the funds based on expense ratio, standard deviation and suitability
Best Mutual funds to invest in 2015 – Large Cap (click the image to enlarge)
Performance of Large cap Mutual funds (click the image to enlarge)
Best Mutual funds to invest in 2015 – Large and Mid cap (click the image to enlarge)
Performance of Large and Mid Cap funds (Click the image to enlarge)
Best Mutual funds to invest in 2015 – Mid and small cap (Click the image to enlarge)
Performance of Mid and small cap funds (Click the image to enlarge)
Best Mutual funds to invest in 2015 – Multi cap (Click the image to enlarge)
Performance of Multicap funds (Click the image to enlarge)
Best Mutual funds to invest in 2015 – Balanced (Click the image to enlarge)
Performance of Balanced mutual funds (Click the image to enlarge)
The mantra to generate good returns is “Regular Investing”. Most of the time it has been observed that specific fund is not satisfying any of the selection criteria but still is giving decent return , in fact returns comparable to the top quartile funds.
There are many funds which are not coming in the above lists but i have advised it to many of my clients as per their requirement and my understanding of their goals and risk profile. Sometimes softwares that advisers are using are not showing the clear picture. For e.g. in the large cap list above – L&T Equity and UTI Opportunities, comes under Large and Mid cap category but value research treats it as Large cap. These things may confuse you.
So while designing a fundtastic mutual funds portfolio , which is well diversified, one may use the quantitative parameters as mentioned above, but final selection depends on your own understanding of mutual funds, the process the fund management follow, Philosophy of the fund house and many other such kind of qualitative parameters.
Hope you find the article “Best mutual funds to select in 2015” useful. Do share it among your friends. and if you have any question feel free to use the comments section below.