4 of CRISIL's Top Ranked Equity Mutual Funds: Should You Invest In Them?

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Credit rating agency, CRISIL from time to times comes-up with the top ranked mutual funds in India, based on various parameters.

4 of CRISIL's Top Ranked Equity Mutual Funds: Should You Invest In Them?
These parameters are largely on international best practices and there is little doubt that the selection of CRISIL cannot be questioned.

Here is a list of the Top Ranked Equity Mutual Funds by CRISIL

CRISIL Rating 3 Year Return
Birla Sun Life Top 100 Number 1 25.20%
Franklin India Opportunities Number 1 25.50%
SBI Blue Chip Fund Number 1 27.30%
Tata Equity Opp Fund Number 1 24.60%

There is no doubt that investors have earned stupendous returns in the last three years in each of the above mutual funds. If you see the one year returns in most of the schemes the returns are more then 50 per cent in some cases.

Will these give returns in the future?

If you carefully analyse the portfolio of these funds, you would find that bulk of them have blue chip stocks in their portfolio. These include index heavyweights like ICICI Bank, HDFC Bank, Infosys, TCS, Maruti and L&T among others.

Now, for these funds to continue to give returns in the future, the index heavyweights must rally and the markets themselves should rally. So returns would largely be a function of how the index performs, since most of these stocks are index heavyweights.

If you are expecting a return of 50 per cent like in the last one year, just forget it. That might not be forthcoming. One can look at a more realistic return of 10 per cent in the next one year, say until the end of the current financial year.

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