RECOMMENDED MUTUAL FUNDS

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Selecting the right mutual fund can be a daunting task given the array of mutual funds available today. To help

you build a solid portfolio of mutual funds, we bring to you 5 Top recommendations from our Mutual Fund

Research Team.

Why?

5 funds recommended by Edelweiss

• Every fund in this portfolio is selected after a detailed

quantitative and qualitative analysis mid cap funds

• Continuous and detailed tracking on portfolio • All funds are in SIP form

• Buy all funds with one click • Diversified portfolio for reduced volatility

Funds are selected on the following qualitative and quantitative factors

• Investment style of the fund • Historical returns and volatility of returns

• Fund Manager profile • Outperformance over respective benchmark

• Asset Management Company (AMC) pedigree and Average • Asset allocation and systematic risk of the fund and many

Assets Under Management (AUM) more other factors

1. ICICI Prudential Focused Bluechip 4. IDFC Premier Equity – Plan A

2. HDFC Equity 5.

3. DSP BR Top 100 Reg

Please find below a brief factsheet on the above mentioned funds

• The all equity portfolio is a blend of large and

UTI Dividend Yield

R E C O M M E N D E D MUTUAL FUNDS


ICICI Prudential Focused Blue-chip Equity Fund

Fund House Inception Date

Fund Manager Benchmark

Type AUM

Category Min Investment

Entry Load Exit Load

ICICI Prudential AMC May, 2008

Prashant Kothari S&P CNX Nifty

Open Rs. 2,545.23 Cr (30th June, 2011)

Large CAP Rs. 5,000

Nil 1% on or before 1Y, NIL after 1Y

Portfolio Details:

Fund Performance:

Over time the fund has consistently managed to beat its category average as well as the Nifty (its benchmark). Over the last 3 years the fund has given close to 16% return over the 5% return of the benchmark. In 2010 the fund gave 27% return while the index gave 17%. During the bull market of 2009, the fund outperformed the index by a huge margin by presenting a return 88% while the index gave 88%. Rs. 1000 invested in the fund in May, 2008, would have grown to Rs. 1510 as against Rs. 1025 in nifty over the same period.

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ICICI Pru Focused Blue Chip Equity

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ICICI Pru Focused Blue Chip Equity -Ret Nifty

Analysis:

The fund started in May of 2008, at a time when Equity markets were going through turmoil. As the name suggests the fund primarily invests in blue-chip stocks with a universe of the top 200 highest market cap companies of NSE. The fund holds most of its stocks since inception. The top 10 stocks form about 54% of the portfolio making it a highly concentrated portfolio. The major exposure of its portfolio comes from IT followed by Banks.

The fund is an ideal for an investor looking to invest purely in the large cap blue-chip stocks. It is a good addition to one’s portfolio as a ‘Core’ investment.

Investment Objective:

Generate long term capital appreciation and income distribution to unit holders from a portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain and the balance in debt securities and money market instruments.

Below is a graphical representation of growth of Rs. 1000 invested in the Fund v/s Nifty.

Stocks % Sector %

Bharti Airtel Ltd. 6.95 IT – Software 14.05

Reliance Industries Ltd. 6.50 Bank – Private 12.72

Axis Bank Ltd. 5.56 Bank – Public 9.38

ITC Ltd. 5.32 Telecom 6.95

Cipla Ltd. 5.29 Other 6.92

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HDFC Equity Nifty



Aims at providing Capital Appreciation through investments predominantly in equity oriented securities.

HDFC Equity Fund



Type AUM



HDFC AMC January, 1995

Prashant Jain S&P CNX 500

Open Rs. 9,738.9Cr (30th June, 2011)

Large CAP Rs. 5,000

Nil 1% on or before 1Y, NIL after 1Y

Stocks % Sector %

State Bank Of India 7.95 Bank – Public 13.01

ICICI Bank Ltd. 6.05 IT – Software 8.29

TCS Ltd. 4.47 Bank – Private 7.65

Bharti Airtel Ltd. 4.12 Refineries 5.88

Infosys Ltd. 3.82 Telecom 4.12

Portfolio Details:

Fund Performance:

The fund has been performing inline with Nifty since inception, but its outperformance started in 2009, where it outperformed Nifty by a huge margin. It delivered 102% as against 71% of Nifty. In the fall of 2008, the fund's negative return was marginally better than that of the benchmark, where it fell 50% as against 52% of the benchmark. Over the last 3 years the fund returned an annulised 16% as against 5% in Nifty. Rs. 1000 invested in June, 2007 grew to Rs. 1535 as against Rs. 1165 in the benchmark.

Analysis:

One of the best funds in the large cap space, HDFC Equity has managed to maintain its outperformance over the years. The fund has almost always managed to outperform not only its benchmark, but also the category average. The fund's current portfolio holds 95% of its corpus its equities with a small percentage of cash. The fund holds about 33 stocks in its portfolio, with the top 5 holdings forming 26% of its corpus. The fund manager usually prefers to be fully invested by taking small cash calls even during the bear markets. The result of this can be seen in 2009 when it delivered a stellar performance of 102% as against 71% of the index.

The fund is an ideal large cap oriented fund which has had consistent performance all through.

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HDFC Equity Nifty

Below is a graphical representation of growth of Rs. 1000 invested in the Fund v/s Nifty.



To generate capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of 100 largest corporates by market capitalization listed in India.

DSR BR Top 100



Type AUM



DSP BlackRock Mutual Fund March, 2003

Apoorva Shah BSE 100

Open Rs. 2,987.26Cr (31st August, 2011)

Large CAP Rs. 5,000

Nil 1% before 12M, NIL on or after 12M

Stocks % Sector %

HDFC Bank Ltd. 7.88 Bank – Private 11.19

HDFC Ltd. 6.90 Pharmaceuticals & Drugs 9.75

Hindustan Unilever Ltd. 6.14 Household & Personal Products 8.95

Oil & Natural Gas Corpn. Ltd. 4.90 Other 7.01

Larsen & Toubro Ltd. 4.63 Power Generation/Distribution 6.51

Portfolio Details:

Fund Performance:

Over the last 3 years the fund has given an annualized return of close to 11% as against Nifty’s 5% hence placing it in the top quartile of other large cap focused funds. Though the fund marginally outperformed nifty in 2009, it managed to restrict the fall to 46% in 2008 as against negative 52% of nifty. For the year of 2011, the fund is down 13% as against negative 19% from nifty. Rs. 1000 invested in the fund and index in June, 2007 grew to Rs. 1445 in the fund and to Rs. 1160 in nifty.

Analysis:

The fund with close to Rs. 3000cr of assets has predominantly been a large cap fund. The current portfolio has close to 93% invested in equities with close to 40 stocks. The maximum exposure comes from the sector of banks in which it holds close to 11% of corpus. Relative to peers, the fund maintains an overall low exposure to individual sectors. The top 10 stocks hold close to 48% in the portfolio making it a diversified portfolio. The portfolio is a blend of momentum and defensive stocks.

Overall the fund can form a part of an investor’s core portfolio by investing regularly through SIPs.

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DSPBR Top 100 Equity -Reg Nifty

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DSPBR Top 100 Equity Nifty

Below is a graphical representation of growth of Rs. 1000 invested in the Fund v/s Nifty

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IDFC Premier Equity-A CNXMID Index



The Scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments.

IDFC Premier Equity



Type AUM



IDFC Mutual Fund September, 2005

Kenneth Andrade BSE-500

Open Rs. 2,383.55Cr (31st August, 2011)

Mid-cap Rs. 5,000

Nil 1% on or before 365D.

Stocks % Sector %

Asian Paints Ltd. 5.43 Textile 8.15

Page Industries Ltd. 5.36 Consumer Food 6.57

Coromandel International Ltd. 4.60 Paints 5.43

Glaxosmithkline Ltd. 4.33 Fertilizers 4.60

Bata India Ltd. 4.01 Leather 4.00

Portfolio Details:

Fund Performance:

The fund with its bias towards small and midcaps, has had its share of volatile returns, but has overall managed to outperform the midcap index by a huge margin. It returned 98% in the bull market of 2009, as against 95% of CNX Midcap. Over the last 3 years the fund has returned an annualized 19% as against 9% of CNX Midcap Index. Rs. 1000 invested in the fund in June, 2007 would have grown to Rs. 2015 in the fund versus Rs. 1280 in CNX Midcap index.

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IDFC Premier Equity-A CNXMID Index

Analysis:

IDFC Premier Equity was originally a close ended fund launched in 2008, but it turned open ended a year later in September, 2009. In fact the fund became open ended much before its scheduled March, 2011 date. The portfolio holds about 60-62% in large cap stocks and the remaining in small and mid cap stocks. The current portfolio has 86% invested in Equities for the current portfolio. The top 10 equity holdings hold close to 40% of the portfolio. In the current portfolio the fund holds nearly 25% of its corpus in consumer non durables. The fund is ideal for investors looking at exposure to small and mid cap stocks over a 3-5 year horizon.

Below is a graphical representation of growth of Rs. 1000 invested in the Fund v/s CNX Midcap.



An Open ended equity scheme which aims to provide medium to long term capital gains and/or dividend distribution by investing predominantly in equity and equity related instruments which offer high dividend yield.

UTI Dividend Yield



Type AUM



UTI Mutual Fund May, 2005

Swati Kulkarni BSE-100

Open Rs. 3304.26Cr (30th June, 2011)

Opportunity Rs. 5,000

Nil 1% before 1Y.Nil on or after 1Y

Stocks % Sector %

Infosys Ltd. 5.29 IT – Software 9.92

ITC Ltd. 4.84 Bank – Public 9.89

ICICI Bank Ltd. 4.62 Other 8.53

Tata Consultancy Services Ltd. 4.00 Cement & Construction Materials 5.74

NTPC Ltd. 3.94 Power Generation/Distribution 4.92

Portfolio Details:

Fund Performance:

Over the last 3 years the fund has delivered an annualized return of 17% as against 5% by the CNX 500. The fund participates in up trending markets as well as down trending markets. In the bull market of 2009, the fund performed in line with CNX500 with a return of 83% which is comparable to other equity diversified schemes. In the bear market of 2008, the fund contained its losses to 45% fall as against 57% fall in the CNX500 Index. Rs. 1000 invested in the fund and index in June, 2007 grew to Rs. 1730 and 1130 respectively.

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UTI Dividend Yield CNX500 INDEX

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UTI Dividend Yield CNX500 INDEX

Analysis:

With over Rs. 3000cr of assets, the fund has a clear large cap focus. The portfolio has about 80-85% in large caps and the remaining in small and mid caps. The fund is mandated to invest 65% of the portfolio in stocks that have dividend yield higher than that of Nifty. High dividend yield funds are known to perform only in market downturns, but this fund proves that they can perform well even in up trending markets. These funds have great ability to protect downside by moving into debt and cash. In the current portfolio, the manager holds close to 8% in cash and 1-2% in debt.

The fund is ideal for a conservative investor looking at decent returns and superior downside protection.

Below is a graphical representation of growth of Rs. 1000 invested in the Fund v/s CNX 500

Source: All NAV data from ACEMF


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RECOMMENDED MUTUAL FUNDS