Top Mutual Funds in Best Performing Equity Mutual Funds in India

The best performing Large-Cap Mutual Funds India

The best performing Mutual Funds in Dividend Yield Mutual Funds India

The best performing Midcap Mutual Funds

The best performing Mutual Funds in Liquid and Ultra Short-Term Mutual Funds

Liquid funds, money market funds, ultra short-term Mutual Funds are good for parking surplus funds that is likely to be deployed elsewhere in less than 2-3 months.  Liquid mutual funds hold securities with maturities of less than 91 days. Liquid mutual funds provide opportunity to earn returns higher than savings bank account. Ultra short-term bond funds can hold securities of maturity longer than 91 days and hence can provide marginally higher returns than liquid funds. Money in a liquid fund can be redeemed within a day. Tax on dividend income is 25 per cent for liquid funds and 12.5 per cent for other debt funds. Capital gains tax is applicable on liquid funds and indexation benefits apply for debt funds.

When considering investing in debt schemes, it's important to consider the average maturity profile of the portfolio (published in AMC website). To reduce the risk of volatility, the investor's holding period for the fund should be close to the fund's average maturity profile.

How have Liquid Funds performed? The following are the best performing Liquid mutual funds ranked based on risk adjusted performance. These funds have produced annual returns in the 7-8% range, which is much better than your bank account.  LIC MF Liquid Fund, HDFC Cash Management Fund and HDFC Liquid Fund have performed very well over short as well as longer period of time.  So, check your savings account balance and park your money in these funds instead.

FUND	AUM (Rs Cr)	NAV	1wk	1mo	3mo	6mo	1yr	2yr	3yr	5yr
LIC MF Liquid Fund	8,053.79	18.05	0.1	0.7	2	3.8	6.7	11.7	21.8	41.8
HDFC Cash Management	2,403.08	20.63	0.1	0.7	2.1	3.9	6.8	11.7	21.2	40.9
HDFC CMF-Treasury Advg	5,782.69	21.40	0.1	0.7	2	3.8	6.7	11.6	20.9	40.6
Principal Cash Management	731.77	15.36	0.1	0.7	2	3.9	6.7	11.3	20.8	40.2
HDFC Liquid Fund	539.17	19.51	0.1	0.7	2	3.8	6.6	11.2	20.5	39.8
Birla Sun Life Cash Manager	234.81	24.01	0.1	0.7	2	3.7	6.5	11.1	20.2	38.8
UTI Money Market Fund	125.00	2,742.94	0.1	0.7	1.9	3.7	6.3	10.9	20.5	38.9
SBI Magnum Insta Cash	3,320.77	21.92	0.1	0.7	2	3.9	6.8	11.1	20.2	38.8
IDFC Liquid Fund	478.73	1,392.95	0.1	0.8	2.3	4.2	7.2	11.9	19.5	38.4
Reliance Liquid Fund TP	727.57	23.58	0.1	0.7	2	3.8	6.4	11.1	20.4	38.5
Birla SL Cash Plus - RP	202.46	26.07	0.1	0.7	1.9	3.7	6.1	10.1	19	37.7
Templeton Treasury MA	199.33	2,419.35	0.1	0.7	1.9	3.7	6.4	10.6	19.8	38.1
UTI Liquid Cash Plan	354.99	1,588.70	0.1	0.7	1.9	3.7	6.3	10.5	19.5	37.9
ICICI Pru Liquid Plan	406.55	236.96	0.1	0.6	1.9	3.6	6.1	10	18.8	37.3
L&T Liquid	238.58	19.60	0.1	0.7	2	3.8	6.4	10.7	19.8	37.7
DSP-BR Liquidity Fund	163.65	23.42	0.1	0.7	2	3.8	6.7	10.4	18.9	35.8
HSBC Cash Fund	102.55	15.79	0.1	0.6	1.8	3.3	5.7	8.1	15.4	33.1
IDFC Cash Fund	102.26	17.52	0.1	0.7	1.9	3.7	6.4	10.6	19.3	34.6
Reliance Liquid - Cash	638.21	16.00	0.1	0.7	2.1	3.9	6.4	8.9	15.5	29.5

The numbers are absolute return.

See this article for ultra short-term funds.

Happy Investing!

The best performing Mutual Funds in MIP - Best Monthly Income Plan

AUM of at least 100 crores Performance over different periods of time are taken into account. Source of data: moneycontrol.com

India's demand for Gold.

 

Gold demand in India will continue to grow in the next decade. The steep rise in the price of gold over the lst 10 years makes it look like a bubble. However, there is a key factor at work. The rise of India!.  During this period, India's demand for Gold went up by 25%. India's demand for gold is expected to grow  by almost 3% per annum over the next decade.

"“The rise of India as an economic power will continue to have gold at its heart. India already occupies a unique position in the world gold market and, as private wealth in India surges over the next ten years, so will Indian demand for gold....“Indians tend to be risk averse and place great faith in the wealth preservation qualities of gold, which inspires confidence, stability and security. Therefore, the view that Indian demand for gold will be driven by the concept of enduring value, not price." - World Gold Council.

 

Source: www.usagold.com

Warren Buffett on Gold: "[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

Laddering of Fixed Deposits

Bank FD rates are around 9.25%. Some Corporates are offering rates as high as 12%. Will rates go up another 1-2%? The markets are ambiguous. What do you do now?
It's not a great idea to lock all your money in a 3 yr term deposit (currently at 9.25%) and lose liquidity and potential to earn a higher interest rate in 6 months. Instead, go for a multiple FD deposits with a ladder in terms of maturity. I suggest a FD ladder of 6-months, 1 yr, 1.5 yrs, and 2 years. When the 6-month term deposit matures, renew it to a 2-year term. This gives you access to funds (without any penalty) every year. If you think rates have peaked (and you don't need the liqidity), you can always renew for a longer duration.