I want to start investing in the stock market through a mutual fund SIP for a very long time. I want to start with Rs 1,000 per month. Please suggest the best diversified large-cap fund which I don't have to worry about.
Chandresh Rawka
To find investment worthy large-cap funds we applied the following filters to the universe of open-end equity funds. All these funds have:
- Over 3-year history
- Must have a 5- or 4-star Value Research Fund Rating, the risk-adjusted performance rating
- Must have net assets of over Rs 100 crore
- Minimum average allocation of 60 per cent to large cap stocks over the past 1-year
- Maximum allocation of 10 per cent in small cap stocks.
Only 13 funds were filtered out of 217 open-ended equity funds. These include Birla Sun Life Equity, Birla Sun Life Frontline Equity, Fidelity Equity, Franklin India Bluechip, HDFC Top 200, HSBC Equity, ICICI Prudential Growth, Kotak 30, Kotak Opportunities, Magnum Contra, Magnum Equity, Sundaram BNP Paribas Growth and Tata Pure Equity.
All these funds often qualify as Value Research's Analyst's Choice in their recommendation. These funds are also part of Value 50. You could start your SIP of Rs 1,000 with any of these funds.
This article was originally published on January 28, 2009.
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