Given this performance of the stock market, most equity mutual fund schemes closed with marginal gains. Funds with a mid-cap and small-cap focus gained the most and were among the top performing mutual funds for the week. Those mutual funds that invested aggressively in PSU Bank and Media stocks would have lagged behind. While those with a predominant exposure to Auto and Energy stocks would have gained.

In terms of valuations, the price-to-earnings (P/E) multiple of the S&P BSE Sensex hovers around 24 times. The P/E of the S&P BSE MidCap is now at 38x and that of the S&P BSE SmallCap index remains around 100 times.

The recent relief rally over the past couple of weeks has pushed valuations higher and the indices continue to trade over twice their long-term average P/E. Hence, could come under pressure with adverse news.

On shifting the focus on sectoral performances, shares of Auto, Energy and Infrastructure sectors managed to close with reasonable gains. The Nifty Auto, Nifty Energy and Nifty Infra indices, gained by 2.75%, 2.15% and 2.03% respectively. Mutual funds investing in these sectors would have been able to deliver good returns to investors.

Among the sectoral indices that traded in the red were the Nifty PSU Bank, Nifty Media and Nifty Bank index. Shares of these sectors fell 4.23%, 0.67% and 0.21% respectively. Mutual funds investing heavily in these sectors would have trailed behind the others.

Among equity-diversified mutual funds Aditya Birla SL India Opportunities Fund, Reliance Regular Savings Fund, Sundaram S.M.I.L.E Fund, HDFC Small Cap Fund, and Taurus Ethical Fund topped the list with returns of 2.56%, 2.41%, 2.16%, 2.02%, and 1.97% respectively.

Top Mutual Funds of The Week

Scheme Name	1 Week (%)	3 Months  (%)	6 Months  (%)	1 Year (%)
Aditya Birla SL India Opportunities Fund	2.56	2.25	17.82	34.43
Reliance Reg Savings Fund-Equity Option	2.41	-4.61	4.33	18.04
Sundaram S.M.I.L.E Fund	2.16	-4.47	8.22	15.37
HDFC Small Cap Fund	2.02	0.70	17.90	36.08
Taurus Ethical Fund	1.97	1.23	10.56	19.30
Indiabulls Value Discovery Fund	1.93	-6.70	2.71	4.78
LIC MF Midcap Fund	1.90	-0.80	5.96	16.83
Invesco India Mid Cap Fund	1.85	-3.72	8.05	15.03
Aditya Birla SL Special Situations Fund	1.65	-3.54	4.28	21.25
Tata India Consumer Fund	1.63	0.89	12.29	34.19
UTI India LifeStyle Fund	1.62	1.61	7.81	18.01
Aditya Birla SL Small & Midcap Fund	1.54	-6.11	3.37	15.19
Invesco India PSU Equity Fund	1.54	-6.34	-5.81	-2.33
Sundaram Rural India Fund	1.47	-2.10	4.21	15.26
Sundaram Select Midcap	1.47	-3.33	5.00	13.25
Aditya Birla SL Equity Fund	1.46	-2.51	2.72	14.91
Invesco India Mid N Small Cap Fund	1.45	-3.37	8.60	16.54
Kotak Classic Equity Scheme	1.44	1.20	6.16	22.42
Principal Growth Fund	1.44	-4.51	5.67	21.16
Reliance Small Cap Fund	1.40	-4.51	11.41	25.52

Data as on April 20, 2018. Returns are absolute
(Source: ACE MF, PersonalFN Research)
 

*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.

Category-wise Top Performing Equity Mutual Funds of the week

On having a look at the category wise performance Kotak Classic Equity Scheme, ICICI Prudential Select Large Cap Fund, LIC MF Growth Fund, Tata Retirement Savings Fund, and Canara Rob Large Cap+ Fund were the top large cap funds with a return of 1.44%, 1.38%, 1.37%, 1.33%, and 1.28%.

Sundaram S.M.I.L.E Fund, HDFC Small Cap Fund, LIC MF Midcap Fund, Invesco India Mid Cap Fund, and Aditya Birla SL Small & Midcap Fund, were the top mid cap funds & top small cap funds with a return of 2.16%, 2.02%, 1.90%, 1.85%, and 1.54% respectively.

Among multicap funds, Aditya Birla SL India Opportunities Fund, Reliance Regular Savings Fund, Taurus Ethical Fund, Indiabulls Value Discovery Fund, and Aditya Birla SL Special Situations Fund, were the top multicap funds with returns 2.56%, 2.41%, 1.97%, 1.93%, and 1.65% respectively.

Top Performing ELSSs of the week

In the ELSS category LIC MF Tax Plan, Principal Tax Savings Fund, Principal Personal Tax saver Fund, Quantum Tax Saving Fund, and DHFL Pramerica LT Equity Fund were the top ELSS funds, generating a return of 2.18%, 1.49%, 1.22%, 1.21%, and 1.14% respectively.

Top Performing Balanced Funds of the week

Balanced funds were able to deliver restrict losses better with the debt component, but were not able to stay out of the red. The top balanced funds for the week LIC MF ULIS, Principal Balanced Fund, IDBI Hybrid Equity Fund, Tata Retirement Savings Fund - Mod Plan, and SBI Magnum Balanced Fund. These schemes delivered a return of 1.64%, 1.33%, 1.19%, 1.10%, and 1.08% respectively.

How to invest in the best mutual fund schemes?

PersonalFN suggests that you must take a closer look at the performance of your mutual funds. Staying invested in funds with a proven track-record of consistent performance may pay off in the long run.

While we acknowledge that, even the best systems and processes cannot predict the top mutual funds of the future, as an investor, you need to pick the right and suitable funds to meet your financial goals.

Hence, a process that combines both quantitative and qualitative factors has a good chance of picking funds that can deliver decent market-beating returns. The quantitative factors will cover the fund’s performance across multiple periods and market cycles, as well as the fund’s ability to manage risk among other factors.

The qualitative factors will take into account the fund manager’s experience, the performance of the fund house across multiple schemes, as well as the quality of assets in the portfolio, to name a few. Thus, when analysing a fund across both quantitative and qualitative parameters, you will be able to pick a fund that has a promising future.

PersonalFN adopts such a process to shortlist the potentially best mutual funds for its subscribers.

Thus, in the interest of your long-term financial wellbeing, it is best that you wisely structure and review your mutual fund portfolio. If you are unsure where to invest fresh investible surplus currently, to strike the correct risk-return tradeoff we recommend adopt a ‘core and satellite approach’ to investing.

In times of volatility, a Systematic Investment Plan (SIP) would undoubtedly be a prudent route as compared to investing your corpus as a lumpsum. When investing in equity, it is important to keep a long-term investment horizon of five to seven years or more, even if you are investing via a SIP.

Editor's note: PersonalFN understands that not all investors are equipped with wherewithal to select the best mutual fund schemes for their portfolio. One would have to spend hours analysing mutual fund schemes in order to arrive at the right list for them. Thus, PersonalFN saves you the trouble and does all the tedious number-crunching work for you. SIP is only a method of investing in mutual funds. To support this investment method, you also need to pick the right mutual funds. PersonalFN offers a report titled "The Super Investment Portfolio – For SIP Investors." After a rigorous shortlisting process, PersonalFN goes a step ahead when selecting funds that are SIP-worthy. Under this, PersonalFN conducts a detailed analysis on how SIPs in the top shortlisted funds have performed across multiple market conditions and timeframes. Only those funds that successfully pass this evaluation are suggested. You can read more about the report and the subscription details here: The Super Investment Portfolio – For SIP Investors. Don't miss out on special discounts. Subscribe Now!

 

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DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014

About the Company including business activity 

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989. 

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

'PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services. 

Quantum Information Services Private Limited (QIS) is registered as Investment Adviser under SEBI (Investment Adviser) Regulations, 2013 and having Registration No.: INA000000680. In terms of second proviso to Regulation 3 (1) of SEBI (Research Analysts) Regulations, 2014 the Company is not required to obtain Certificate of registration from SEBI.
Disciplinary history

There are no outstanding litigations against the Company, it subsidiaries and its Directors. 

and condition on which its offer research report. For the terms and condition for research report click here.
Details of associates

1. Money Simplified Services Private Limited;
2. PersonalFN Insurance Services Private Limited ;
3. Equitymaster Agora Research Private Limited;
4. Common Sense Living Private Limited;
5. Quantum Advisors Private Limited;
6. Quantum Asset Management Company Private Limited;
7. HelpYourNGO Private Limited;
8. HelpYourNGO Foundation;
9. Natural Streets for Performing Arts Foundation;
10. Primary Real Estate Advisors Private Limited;
11. Rahul Goel;
12. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest

1. Neither QIS, it’s Associates, Research Analyst or his/her relative have any financial interest in the subject Company , except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF.
2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS (PersonalFN) is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS (PersonalFN) is also at arm's length and as per prevailing market practices

Disclosure with regard to receipt of Compensation

1. Neither QIS nor it's Associates have any compensation from the subject Company in the past twelve months.
2. Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company in the past twelve months.
3. Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company in the past twelve months.
4. Neither QIS nor it’s Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months except from Axis Bank Limited under a service agreement.
5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report

General disclosure

1. The Research Analyst has not served as an officer, director or employee of the subject Company.
2. QIS or the Research Analyst has not been engaged in market making activity for the subject Company.

Subject Company means Mutual Fund Schemes

Quantum Information Services Private Limited CIN: U65990MH1989PTC054667 Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

SEBI-registered Investment Adviser. Registration No. INA000000680, SEBI (Investment Advisers) Regulation, 2013

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