A Mutual Fund is a registered body corporate that pools up money from investors and invests the same on behalf of the investors in bonds, shares, securities, etc and distributes the profit after deducting their administrative and other expenses. It gives investors an indirect access in a basket of assets; it gives investors cheap access to expensive stocks. Your ideal choice of a mutual fund plan depends on your age, income, tax status, risk taking capacity, financial responsibility and investment objective.
Few quick facts on mutual fund:
- Mutual funds and all financial assets are totally exempt from Wealth Tax Act.
- If any mutual fund unitholder gifts any number of units of mutual fund to another, such gift is exempted under Gift Tax Act with effect from 1st October 1998.
- Any income generated from any mutual fund under equity or growth scheme where at least 50% of the corpus of the fund have been invested in equity, such income is exempt from the calculation of taxable income as per provisions of Indian Income Tax Act.
- Mutual fund investments are ideal for investors with medium term or long term return expectation in mind. Short term abnormal profits hardly sustain in long run. On the other hand, mutual funds in medium to long term returns outperform most other forms of investments.
Presently there are 45 Asset Management Companies in India with total assets under their management worth Rs. 816,657 crore at the end of 31 March 2013. The figure rose from earlier figure of Rs. 807,546 crore that stood at the end of November 2009. The following table shows the names of the best performers selected among all fund types in the year 2012.
Top 10 Indian Mutual Funds as Per Last 1 Year Return (2012-2013)
The above list will remain incomplete unless we mention the names of 9 Indian Mutual Funds (equity fund class) that managed seat in the LIPPER list of world’s best performing funds in 2012. Thomson Reuters Lipper, to prepare this list, tracked 27,153 actively managed equity mutual funds all over the world. The top 100 list includes 14 equity funds, each from Thailand and Pakistan and 9 from India. Five of these 9 Indian mutual funds are banking sector funds. The names of these 9 funds with their overall ranks and return with fund value in the year 2012 are shown below:
Indian Mutual Funds (Equity) in The World Top 100 List:
Name of the Mutual Fund Scheme
|Return in 2012 (%)||Fund Size(30Mar 2013)Rs. crore|
|22||ICICI Prudential Banking & Financial Service||72.21||255.10|
|50||Reliance Banking FD Retail Growth( Plan Growth Option)||60.52||1865.38|
|67||UTI Banking Sector Fund-Regular Plan-Income||58.71||378.29|
|77||Sahara Banking and Financial Services Fund Growth||58.16||18.89|
|78||Religare Banking Fund-Growth||58.13||51.45|
|79||Reliance Media & Entertainment Fund-Growth Plan||57.96||102.65|
|89||SBI MSFU Emerging Business Fund-Growth||56.31||1,214.96|
|93||SBI Magnum Sector Funds Umbrella-FMCG||55.30||2539.41|
|94||Principal Emerging Blue chip Fund||55.03||277.47|