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Over the past few years, mutual fund schemes in India have significantly grown. As a result, we see the best performance funds keep changing. In India, systems like CRISIL, Morning Star, and ICRA evaluate the performance of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> on the basis of the returns they assure, standard deviation, qualitative and quantitative aspects and other factors. When these findings are summed up, we get the list of top performing <keyword id="864677" type="PERSON" weightage="20" keywordseo="Mutual-Funds-in-India">mutual funds in India</keyword> for a given financial year. This list can guide the investors in choosing the right kind of avenues to invest in the domain of mutual funds. Here we discuss the <keyword id="35457" type="PERSON" weightage="20" keywordseo="Best-Mutual-Funds">best mutual funds</keyword> for FY 2019-20. <table style="width: 279pt;"> </colgroup> <tbody><tr> <td class="xl65" style="height:15.0pt;width:162pt">Mutual Fund Name</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 117pt;">12-month change (%)</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Mirae Asset Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">58.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Invesco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">49.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">AXIS Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">23.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Canara Robeco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.5</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">SBI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Kotak Mahindra Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">16.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.8</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">IDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.6</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">PRINCIPAL Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">UTI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">ICICI Prudential Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Reliance Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.2</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">L&amp;T Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Motilal Oswal Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">BNP Paribas Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Sundaram Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Aditya Birla Sun Life Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-9.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Franklin Templeton Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-12.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">DSP Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-13.3</td> </tr></tbody></table>Source: August'19 (Motilal Oswal - Indian Mutual Fund Tracker) Nifty changed by -5.6% during the same period. The background Following the market correction in 2018, the valuations in several categories have reached highly attractive levels. This has opened up new opportunities for the investors and the fund managers. India’s top performing mutual funds are all set to assure strong returns to the investors in 2019-20. Axis Blue Chip Fund Incepted on January 5, 2010, the AUM of this large cap fund is Rs. 4,802 crore. The outperformance of this fund over the recent past is impressing the industry experts during a time when a large number of actively managed funds failed during last year. As of May 2019, the 5 year CAGR of Axis Bluechip Fund is 15.16%. This can offer a solid platform for a very powerful mutual fund portfolio in 2019. Kotak Standard Multicap Fund Considered under the category of Equity Multicap fund, the AUM of Kotak Standard Multicap Fund incepted on September 11, 2009, is Rs. 23,881 crore. It has delivered a return of 19.48% over the past five years. This fund also presents immense growth prospects in the mid cap space. Fairly diversified across 56 sticks, the investors feel they are taken care very well when they invest in it. HDFC Small Cap Fund Found under the category of small cap funds and incepted on April 3, 2008, the AUM of HDFC small cap fund is Rs. 7,660 crore. Despite the severe test of the times in 2018, the fund has managed to provide the investors a 5 year CAGR at 20.83%. About 57% of this funds has been invested in small cap companies while 36% is invested in mid-cap space leaving the remaining 6% to large caps. Franklin India Prima Fund Incepted on December 1, 1993, this fund has completed 25 years in the stock market. Categorized as mid cap fund, the AUM is Rs. 7,116 crore. It could deliver a highly amazing 19.52 CAGR. This will mean that if a sum of Rs 1 lakh was invested in during its inception, it will value at Rs 90.70 lacs now. Axis Long Term Equity Fund Incepted on December 29, 2009 and categorized as ELSS tax saving fund, the AUM of this fund is Rs. 18,852 crore. This fund is considered as a legend in the arena of tax saving schemes. For a long time, it has continuously outperformed till it reached a point when a majority of investors always had a portion of their tax saving investment in this fund. See Also:<a data-type="tilCustomLink">Top Mutual Funds to invest this Diwali for long-term prosperity of your Family</a>

Top performing mutual funds in India 2019

<ul><li>Indian markets have had a volatile one year with Nifty clocking gains of about 10% in the one year ending June 30, 2019.</li><li>While six equity mutual funds performed better than the benchmark, only one of them manged to clock double the growth rate.</li><li>3 of the top 20 equity funds, by assets under management, showed a loss in investor wealth.</li></ul>Indian markets have had a volatile one year with Nifty clocking gains of about 10% in the one year ending June 30, 2019. Only six mutual funds performed better than the benchmark. And only one of them, the ICICI Pru Value Discovery Fund, managed to clock double the growth rate compared to Nifty and Sensex. The following is the list of top 20 schemes in descending order of assets under management at the end of June 2019, and the change in value compared to June 30, 2018. <table style="width: 400pt;"> </colgroup></colgroup> <tbody><tr> <td class="xl67" style="height:31.5pt;width:200pt">Rank</td> <td class="xl68" style="border-left-width: initial; border-left-style: none; width: 200pt;">Gains in the last one year</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Kotak Standard Multicap Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">10.80%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Equity Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">18.30%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">SBI Blue-Chip Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">7.80%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Midcap Opportunities Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">-0.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">ICICI Pru Blue-Chip Fund </td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">9%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Frontline Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">6.20%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">AXIS Long Term Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">6.70%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Top 100 Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">18.30%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">ICICI Pru Value Discovery Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">21.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Mirae Asset Large Cap Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">12.10%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Motilal Oswal Multicap 35 Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.60%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Large Cap Fund</td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">14%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Franklin India Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.40%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">4.40%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Tax Saver ELSS Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Multicap Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">15.20%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">UTI Equity Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.50%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Tax Relief'96</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.50%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Franklin India Focussed Equity Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">14.40%</td> </tr> <tr> <td class="xl72" style="height: 15.75pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Small Cap Fund</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.10%</td> </tr></tbody></table> Mutual funds -- a pool of money collected from many investors to invest in stocks, bonds, money market instruments, and other assets-- in India ended June 2019 with record money under management. The inflow into these funds were ₹107 billion, the highest in the last seven months. People invest in mutual funds in India for financial security, to grow their wealth as well as to save on taxes. The Indian government allows a rebate on income tax on money invested in mutual funds up to a maximum of ₹150,000 a year to every individual under section 80C of the Income Tax Act. The amount of money coming into mutual funds had slowed down in the last few months as investors became wary of betting more money in the market for a variety of reasons-- from slowing economy to the risk of elections to growing global tensions, both geopolitical and economic. People who have been investing in systematic investment plans -- small monthly investments-- continued their practice. However, new signings have been lower four out of the last six months showing that there is still palpable fear among investors. SEE ALSO: <a href="https://www.businessinsider.in/videos/business/unhappy-with-salary-hikes-market-expert-nilesh-shah-explains-a-good-way-to-evaluate-your-appraisal/videoshow/70037563.cms" data-type="tilCustomLink" target="_blank">Unhappy With Salary Hikes? Market Expert Nilesh Shah Explains A Good Way To Evaluate Your Appraisal</a> Correction: The data and inference had multiple errors in the earlier version of the story which have now been fixed.

The top 20 mutual funds in India and their performance over the last one year

<ul><li><keyword id="8196525" type="UNKNOWN" weightage="20" keywordseo="Kotak-Pioneer-Fund">Kotak Pioneer Fund</keyword> is a new mutual fund that will be investing in companies that focus on technology and innovation. </li><li>It is uncommon for mutual funds in India to invest in unlisted equities since they pose a high-risk. </li><li>The new fund will be managed by Harish Krishnan, the Senior Vice President and Equity Fund Manager at <keyword id="119509" type="ORGANIZATION" weightage="20" keywordseo="Kotak-Mutual-Fund">Kotak Mutual Fund</keyword>. </li></ul>Kotak Pioneer Fund launched today will invest in new-age companies be it technology pioneers innovators and ground-breaking disruptors. "The investment objective of the scheme is to generate capital which invests into such companies that utilize new forms of production, technology, distribution or process which are likely to significantly challenge existing markets and value networks, displace established market operators, products and/or business models," it said in a press release. And, it will invest in companies which are either listed or unlisted too. It’s not usual for <a href="https://www.businessinsider.in/mutual-funds-types-in-india/articleshow/69285779.cms">mutual funds</a> to invest in unlisted companies since they balance exposure between equity and debt securities. Kotak Pioneer Fund, on the other hand, will be looking to invest in unlisted equities that fall within the guidelines stipulated by market regulator, the Securities Exchange Board of India (<a href="https://www.businessinsider.in/topic/sebi">SEBI</a>). But, this fund has an underlying requirement. These startups or companies have to either be working on a new a new product, a new process, a new application of an existing process or a new way to reach out to customers — something the fund puts under the umbrella on ‘pioneering innovations’. The new fund will be managed by Harish Krishnan, the Senior Vice President and Equity Fund Manager at Kotak Mutual Fund. It has opened for subscription today, October 9, and will close on October 23. "Kotak Pioneer Fund will follow a thematic approach of investing in companies that have a proven track record of multiple revenue streams, resulting in improved customer salience," said Krishnan. High-risk bets on innovation According to <a href="https://www.businessinsider.in/topic/Kotak">Kotak</a>, the fund is recognising that business models are quickly changing in today’s economic climate. It proposes that companies that innovate and adapt to the changing environment, are more likely to succeed in the future. The aim is to bring more companies on board that are looking to apply new forms of production, technology, distribution or processes that will challenge the existing status-quo in the markets. A <a href="https://corpgov.law.harvard.edu/2017/02/26/should-mutual-funds-invest-in-startups/">University of Utah</a> <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2911394">study</a> notes that mutual fund investments in startups pose certain concerns for investors, which is why they are uncommon. It states that liquidity can be a concern since as startups don’t trade shares in the stock market. It also points out that valuations of these startups are based on the management’s discretion, as there’s no market price for guidance. And, because of the discretion in valuation, it’s possible that these funds have a greater vulnerability for misconduct. Looking beyond India The Kotak Pioneer Fund won’t exclusively be looking at companies in India, but across the globe. Nearly 35% of the funds raised could be invested in overseas securities or funds. That being said, India recently moved up on the Global Innovation Index from ranking 57th in 2018 to 52nd in 2019. So many Indian startups could gain as well. "The fund is diversified across sectors and stock to achieve risk mitigation and provides diversification across geographies as well," said Krishnan. As much as 80% to 100% of the Kotak Pioneer Fund will make investments in pioneering innovation themes while 20% can be geared towards debt security and equity. See also: <a href="https://www.businessinsider.in/top-20-mutual-funds-in-india-latest-data/articleshow/70256239.cms">The top 20 mutual funds in India and their performance over the last one year</a> <a href="https://www.businessinsider.in/google-pays-new-tactic-to-take-on-rivals-paytm-phonepe-in-india-introduces-digital-gold-offerings/articleshow/68609832.cms">Google Pay wants to offer Indians their favourite investment option – gold</a>

Kotak’s new mutual fund is looking for investors with an appetite for risk to bet on startups

<ul><li>The campaign talks about ETW Approach (E- Easy to invest, T - a taxing saving investment, W – helps in long term wealth creation).</li><li>It has been conceptualized and creatively led by Mirum India.</li></ul><keyword id="112970" type="General" weightage="20" keywordseo="axis-mutual-fund" source="Orion">Axis Mutual Fund</keyword>, one of the country’s leading <keyword id="6354820" type="General" weightage="20" keywordseo="mutual-fund" source="Orion">mutual fund</keyword> houses, unveiled its new campaign for the upcoming tax season called #ELSSHaiNa. The investor education campaign aims to reiterate the importance of investing in ELSS (Equity Linked Savings Schemes that offer tax benefits under section 80C of the Income Tax Act) as a preferred and hassle-free option to save on tax. One of the most crucial mistakes that most investors make is that they leave tax planning for the last minute. Towards the end of the year, people realise that they need to invest in the right financial instruments to save tax but aren’t able to choose the right one. One can often hear the phrase “Tax ka kya socha hai?” and conversations around it gain momentum as investors rush to understand how can they save tax or how much time is left to make the right investment or even what are the right instruments to invest in! Chandresh Nigam, MD &amp; CEO, Axis AMC said, “At Axis AMC, we have always upheld the importance of Responsible Investing. As money managers, it is our duty to not only educate investors about the significance of investing in quality assets over the long term but also help them grow wealth while saving on tax in an efficient manner. ELSS is an option that is known to all investors. But without having spent the adequate time to optimize the right tax planning solution, investors often make hasty decisions and miss out on the most logical and easy option.” The new campaign by Axis Mutual Fund builds on the insight that the tax season can be anxiety-inducing, only if you have not planned well in advance. Through a series of three films, #ELSSHaiNa aims to make investors realise that at any given point in their lives, investing in ELSS for tax saving should be a ‘no-brainer’ option. The films use humour as a tool to highlight how planning for tax via ELSS is simple and hassle free. In the first film, the protagonist is aware that he needs to plan for the tax saving season. He has taken the advice of several people around him but has still reached no desirable solution. <div type="Youtube" id="JwaLZz_U0QU" title="Tax savings ke liye sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/JwaLZz_U0QU/mqdefault.jpg"></div> In the second film, a newly married couple is can’t seem to decide on their honeymoon destination despite the multiple suggestions by their family members. <div type="Youtube" id="Qp9H3uQ-V-g" title="Iss tax season sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/Qp9H3uQ-V-g/mqdefault.jpg"></div> On the other hand, in the third film, the key character is confused over what to gift an extended cousin for their wedding. <div type="Youtube" id="XR8764psAN8" title="When it's about tax-saving, tab sochna kya hai, #ELSSHaiNa!" thumbUrl="https://i.ytimg.com/vi/XR8764psAN8/mqdefault.jpg"></div> All three films tie back to the proposition that all these aforementioned decisions seem worrying at best. But, when it comes to tax planning, “Sochna Kya Hai?”, because “#ELSSHaiNa”. Raghav Iyengar, Chief Business Officer, Axis AMC asserted, “Thanks to the continued efforts by MF industry, ELSS has started to gain widespread acceptance amongst the investor community. However, tax planning is still viewed as a strenuous and chaotic task. We need more awareness initiatives and campaigns such as ours, will be instrumental in connecting with the wider masses. The three distinct narratives of #ELSSHaiNa focus on capturing investment sentiment across age categories, genders, geographies. Furthermore, Axis Mutual Fund’s 360-degree approach for the campaign will leverage the power of digital, TV, radio, and the print medium to resonate and engage with the target audience.”

Axis Mutual Fund’s investor awareness campaign aims to reiterate the importance of investing in ELSS

<ul><li><keyword id="8536595" type="UNKNOWN" weightage="20" keywordseo="Tata-Quant-Fund">Tata Quant Fund</keyword> is India’s first fund that claims it can beat the market using artificial intelligence by cutting out human bias. </li><li>Business Insider spoke to <keyword id="1124629" type="PERSON" weightage="20" keywordseo="Utpal-Sharma">Utpal Sharma</keyword>, the Head of Business Analytics at Tata Asset Management about how the fund works and how it would react in case of unpredictable events — like wire.</li><li>Sharma also explains why the Tata Quant Fund doesn’t use National Language Processing (NLP) and what the main challenges are in using AI for predicting the market.</li></ul>Your next mutual fund might be managed by an AI algorithm instead of a man in a suit. But it is not a very new concept. In fact, there are already plenty of funds using AI in the US and Europe. India is joining the trend with <keyword id="1515303" type="COMPANY" weightage="20" keywordseo="Tata-Mutual-Funds">Tata Mutual Funds</keyword> launching its first AI-driven quant fund based on the BSE 200 index. Instead of having fund managers analyse market trends to pick the best stocks, a combination of rule-based algorithms picks the winners and losers. Some, like the $54 billion Pangora Asset Management Quant Fund, even use natural language processing (NLP) to keep tabs on traders to predict upcoming market trends. "We have tried that, we didn’t get much of a lift from using that data. So, currently, we are not reading opinions and we’re not reacting to events. We have got structured data in place and making calls based on that structured data," Utpal Sharma, the Head of Business Analytics at Tata Asset Management told Business Insider. But, human intervention comes with its own set of advantages like experience, the ability to understand complex problems and instinct. And, Indian markets — since they are a part of a developing economy — can sometimes be unpredictable. "In our structure, though we are machine-driven, we have a fund manager. In the event of something seriously very different from what has happened in the past years occurs — like a war — he can intervene," explained Sharma. Why do we want to remove human judgement? One of the primary reasons to use AI to beat the market is to remove human bias from affecting choices. But it’s not that easy to measure what needs to be left out. "It’s very hard to pinpoint how human biases impacted what performances by quantum. That’s not something that we measured. We definitely think if you do it in a systematic manner where you are eliminating judgements which are not completely objectively, which are not non-deterministic," said Sharma. Using AI to beat the market Tata Mutual Funds plans to use artificial intelligence (AI) and machines learning (ML) to beat the market. It is India’s first mutual fund to offer an AI-driven investment strategy. Even though the fund may not know how to react to a situation like an unexpected war, that’s not a day-to-day occurrence. For normal events like policy changes, budget declarations and earnings, the model is geared to predict how the market will react — and figure out how to beat it. It relies on data from the past 22 years to forecast how the market will move and they claim that they’ve been testing the model since 2011. "Yes [it will beat the market]. So our index is the BSE 200. Our objective would be to deliver better results than the index. The index itself has generated around — from January to December — 10.25 per cent. Our objective is to do better than those returns," he said. However, not every quant fund is a story of success. The AI Global Equity Fund managed by Aberdeen Standard Investment underperformed in comparison to the market. The explanation offered by the fund manager was that financial market data is finite and that algorithms can only learn so much from past data. "We got two models. One which chooses the best portfolio to invest in, in the coming period. Another model which predicts whether the absolute direction is positive or negative. When we combine them, we have the ability to participate in uptrending markets while avoiding markets which are headed downwards," said Sharma. The model makes its predictions on a monthly basis and is retrained every six months, learning from past events. "We have tried this for different frequencies of relearning and tweaking the model based on recent data. We found that when we take six months incremental data and rebalance or readjust our models, that when we see the best results," explained Sharma. See also: <a href="https://www.businessinsider.in/tech/news/artificial-intelligence-in-2020-needs-to-be-about-ethics-in-india/articleshow/72935214.cms">Rise of the machines: 2020 will be a good year for India to teach AI some ethics</a> <a href="https://www.businessinsider.in/tech/news/india-wants-to-be-on-the-cusp-of-artificial-intelligence-but-lacks-the-laws-to-back-it-up/articleshow/72349825.cms">India wants to be on the cusp of artificial intelligence but lacks the laws to back it up</a> <a href="https://www.businessinsider.in/tech/enterprise/news/5g-airports-ai-powered-safe-cities-and-many-more-that-huawei-has-on-offer-at-the-india-mobile-congress-2019/articleshow/71591351.cms">5G airports, AI-powered safe cities and many more that Huawei has on offer at the India Mobile Congress 2019</a>

Exclusive: Here's how Tata's new AI-driven mutual fund plans beat the market and how it will react if a war breaks out

By the term ‘Mutual Funds’, we mean the money pooled out through the contribution of many investors who intend to save and make money through their investments. The corpus thus created with the investment of these individuals is then invested in different categories namely debt funds, liquid assets and others. The individuals investing in mutual funds have to share the profits and losses equally in proportion to the value of their contribution to the corpus of the mutual funds. Here are the different kinds of mutual funds in India. <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">Mutual fund</keyword> types based on asset class Equity funds Equity funds are those that are invested in stocks or shares of different companies. Since these investments can provide higher results, they are also called as high risk funds. Debt funds Debt funds are those that are invested in debt such as government bonds, fixed income assets and company debentures. These are considered as safe investment options since they provide fixed retruns to the investors. Money market funds Money market funds are those that are invested in liquid instruments. Some examples to this type are CPs and T-bills. These are also deemed as safe investment options since you will get an immediate return on your investment though the returns might be moderate. Balanced or hybrid funds Hybrid funds also called as balanced funds are invested in different kinds of asset classes. When the proportion of debts are found lower than the equity or when the equity is found lower than the proportion of debts, this kinds of funds enable striking a balance between risks and returns. Sector funds Sector funds are those kinds of investments in which the investor chooses to invest in a particular sector or the division of the market. For example, infrastructure fund investors invest in sectors confined to the infrastructure. They might also choose the investment instruments offered by the infrastructure companies. Returns on sector funds investments are directly related to how the given sector performs. The risk factor with regard to these investments vary between sectors. Index funds Index funds are investment tools that represent a specific index on the stock exchange for the purpose of monitoring the returns and how the index moves. In other words, it is like purchasing shares from the BSE Sensex. Tax-saving funds Tax-saving funds are those that are invested predominantly in equity shares. Tax-saving funds enable an investor to claim the tax deductions under the income tax act. The risk factors that are involved in such kinds of investments are very high. Also, in case these funds perform well, higher returns are possible. The tax saving aspect is one of the major attractions connected with these kinds of investments. Those that are willing to take high risks for the sake of inviting higher returns prefer this model. Funds of funds Funds of funds are those that are invested in other mutual funds. The returns on such investments depend on how the target funds perform on the whole.

Different types of Mutual Funds that you can buy in India

Focused <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword>, which invest in a concentrated portfolio of <keyword id="19905382" type="General" weightage="20" keywordseo="stocks" source="keywords">stocks</keyword>, are gaining traction among investors with the <keyword id="22748135" type="General" weightage="20" keywordseo="asset-base" source="keywords">asset base</keyword> of the category growing to Rs 1.43 lakh crore in three months ended June 2024, marking an increase of 31% from a year ago. Interestingly, some of the focused funds offered by the mutual fund houses such as <keyword id="22748136" type="General" weightage="20" keywordseo="Invesco-India-Focused-Fund" source="keywords" meta.keywordsubtype="org" meta.entityname="Invesco India Focused Fund" meta.hostid="261" meta.entityid="Invesco India Focused Fund">Invesco India Focused Fund</keyword>, Mahindra Manulife Focused Fund, JM Focused Fund, and <keyword id="19896378" type="General" weightage="20" keywordseo="hdfc" source="keywords">HDFC</keyword> Focused 30 Fund delivered a remarkable return of 40-60% in the past year, industry data showed. Focused funds are a type of mutual fund where the fund manager selects a concentrated portfolio of stocks, typically limited to a maximum of 30 due to regulatory constraints. This requires the fund manager to be highly skilled in stock selection, as they need to identify the best investment opportunities across the market without bias toward any specific market cap or sector. According to data from the <keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India (Amfi), the assets under management (AUM) of the focused funds were at Rs 1.43 lakh crore in the June quarter 2024-25 as compared to Rs 1.09 lakh crore in April-June FY24. This growth highlights the appeal of focused funds as an alternative to portfolio management services (<keyword id="19950020" type="General" weightage="20" keywordseo="pms" source="keywords">PMS</keyword>), especially with recent tax changes that make PMS less attractive due to higher costs and tax implications, Feroze Azeez, Deputy CEO, of Anand Rathi Wealth Ltd, said. "With the increase in taxation on both small-term capital gain tax and long-term capital gain tax, PMS portfolios are expected to see a drop in post-tax returns. For example, a PMS portfolio generating a pre-tax return of 14 % could see post-tax returns drop from 11.73 % to 11.29 %. This shift could lead to fund managers churning portfolios less frequently, which in turn will be affecting returns for investors," he added. Focused funds follow a similar concentrated portfolio strategy where the fund manager picks the top stocks and offers flexibility across market caps. Thus, becoming a more attractive option for investors looking to optimize their returns. Industry experts recommend investing in focused funds through systematic investment plans (SIPs) as a smart strategy in the current market environment of sector rotation and high valuations. Since these funds invest in a small number of stocks, SIPs can help reduce risk by spreading out investments over time. Overall, there are 31 focused schemes offered by different mutual fund houses in the category. These schemes have given returns of 19-60% in the last one year. In terms of returns, smaller funds have performed exceptionally well. The Invesco India Focused Fund delivered a remarkable return of over 60% in the past year, while Mahindra Manulife Focused Fund provided around 50% returns and JM Focused Fund offered a return of 45% during the period. With a corpus of Rs 1,552 crore as of June 2024, Mahindra Manulife Focused Fund has consistently performed well, securing the second rank for 1, 2, and 3-year periods. The fund delivered returns of 50%, 32%, and 26% over these periods, respectively. HDFC Focused 30 Fund achieved the top rank over the 3 years with a return of 28.63 %, while JM Focused Fund secured the third rank with a 25 % return during the same period. "The success of focused funds underscores the importance of skilled fund management and strategic stock selection," an industry expert said. Focused funds opt for a more targeted strategy rather than the broad diversification typical of traditional mutual funds. This approach helps fund managers make investments in a carefully selected group of stocks, reflecting their strongest investment beliefs. The concentrated nature of these portfolios requires careful selection of each stock, as the fund's performance heavily depends on these choices. Although these funds hold a limited number of stocks, they are structured to be sufficiently diversified to effectively manage risk. Overall, the assets of the equity mutual funds rose to Rs 27.6 lakh crore in June 2024 from Rs 17.43 lakh crore in June 2023.

Focused MFs' asset base rises 31% to Rs 1.43 lakh cr in June qtr; up to 60% returns last year

<ul><li>On April 28, <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> released a circular asking mutual fund companies to provide 20% of salary in <keyword id="44804" type="COUNTRY" weightage="20" keywordseo="MF">MF</keyword> units to key employees. </li><li>The move came after the <keyword id="74229" type="PERSON" weightage="20" keywordseo="Franklin-Templeton">Franklin Templeton</keyword> fiasco to align the interest of the key employees with that of investors. </li><li>The heads of several mutual fund companies are disappointed as the new rule by SEBI translates 20% of their salary into mutual fund units. </li></ul>On April 28, 2021, SEBI informed the asset management companies (AMC) to provide a minimum of 20% salary/perks/bonus/non-cash compensation of key employees in the form of a mutual fund unit. The idea was to align the interest of the key employees with that of investors. A mutual fund unit is a portion of one’s investment from the pool of funds set by the mutual fund company. The move came after the Franklin Templeton <a href="https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms">fiasco </a>wherein the fund house one day suddenly closed six debt mutual fund schemes overnight citing poor liquidity condition in debt markets due to the pandemic-induced crisis. This led to panic among investors who were unable to access their investment thereon. The new mandate by the market’s regulator is applicable for key employees including chief executive officer (CEO), chief investment officer (CIO), chief risk officer (CRO), chief information security officer (CISO), chief operation officer (COO), fund manager, compliance officer, sales head, investor relation officer (IRO), heads of other departments and dealers of the AMC. Direct reportees to the CEO (excluding personal assistant/secretary), fund management team and research team are also included in this list. “After the Franklin Templeton incident, there is no enthuthiasm among newcomers to join the industry. Basically, it is no more an attractive career opportunity with so many regulations in place. These professionals would prefer working in a private equity, PMS (portfolio management services), AIF (alternative investment funds), fintech company which has less regulatory complications. With this, top talents will have one more reason to not choose the mutual fund industry as a career option,” said the chief executive of one of the top mutual fund companies on condition of anonymity. There is complete misalignment of mandatory investment for employees with varied risk appetite and investment time horizon, he added. “The circular on skin in the game, while a good idea in spirit, is going to be extremely problematic in implementation. This circular applies to not just senior employees but junior research staff, dealers, and support function heads. These people don’t earn the kind of money CEOs and CIOs do,” said Radhika Gupta, managing director and CEO of <keyword id="222564" type="COMPANY" weightage="20" keywordseo="Edelweiss-Mutual-Fund">Edelweiss Mutual Fund</keyword> in <a href="https://twitter.com/iradhikagupta/status/1387433870623055880?lang=en">a tweet </a>on April 28, the day SEBI released this circular. “It is forcing them to lock 20% of their income for 3 years. It mandates how much one saves. For a guy earning ₹15-20 lakh [in a year], imagine how difficult it is to put away ₹3-4 lakh [per annum]. We are constraining employee cash flows. Just because I run a mid-cap fund doesn’t mean this is my risk appetite. And a liquid fund manager has to park money in liquid funds for 3 years,” she added. In simpler terms, why would a 30-year-old fixed income fund manager invest a significant portion of his salary in a debt scheme. The objective of a debt fund is to grow wealth in a stable manner with typically lower returns and low risk compared to equity funds. Further, the fund houses have addressed these concerns to SEBI through Association of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">Mutual Funds</keyword> in India (AMFI). It expects some sort of relief from the regulator in terms of reducing the percentage of salary to be given in MF units and cutting some junior level employees from the initiative. Considering this, SEBI has deferred the implementation of the new compensation norms by three months to October 1, 2021. The new rules were supposed to come into effect from July 1, 2021. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrencies-exchanges-can-run-into-trouble-with-investors/articleshow/84205889.cms">Cryptocurrencies aren't all diamonds and roses — lawsuits from people who lost big are piling up with exchanges</a> <a href="https://www.businessinsider.in/business/auto/news/simple-energy-new-electric-scooter-promises-240km-range-on-a-70-minute-charge/articleshow/84164967.cms">This new electric scooter promises 240KM range on a 70-minute charge, could be priced under ₹1,20,000</a>

Getting a senior level job in a mutual fund company may not be so attractive after SEBI rule of giving 20% salary in MF units

<ul><li>In our latest interview series, we talk to brands to understand how they are coping with the new normal and their strategies towards navigating these difficult times.</li><li><keyword id="878756" type="PERSON" weightage="100" keywordseo="Sandeep-Walunj">Sandeep Walunj</keyword>, CMO, Nippon Life India Asset Management shares with us a few advantages of selling a digital product, why there is a need to change the marketing strategy to help consumers through these unprecedented days, and the importance of empowering your employees to be prepared for a crisis. </li><li>He further helps us understand how the <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> industry has been shaping up in the past two months, how long it will take to recover and what its future holds. </li></ul><keyword id="8763838" type="UNKNOWN" weightage="20" keywordseo="covid-19">COVID-19</keyword> has altered the way we walk, work, communicate with people or shop. It has pushed us to accept digitalisation at a rapid pace. Companies that offer digital solutions have seen an accelerating growth due to this sudden shift in consumer behaviour and nationwide lockdown. Being associated with a virtual product, Sandeep Walunj, CMO of Nippon Life India Asset Management has seen this trend emerge up close. The company was equipped well in advance to face the crisis and smoothly shifted to the work-from-home format. Now, after doing some social listening, it changed the course of its conversation to offering long-term solutions like securing long-term wealth, focusing on children’s education, well-being products and upped its short-term recovery-linked solutions. It has also seen an uptick in engagement on social media and consumers are reaching out to the company with their queries, not the other way round. As a result, Nippon Life Asset Management has doubled its content pieces to help them choose the right product in a crisis that is thrown in our way. Walunj further shared with us how the BFSI industry is bound to change after the pandemic, why the brand continues to invest more in television and digital mediums, and how the companies need to do their bit to help the society in this tough time. Excerpts: Q. How has the last month been for you? How have you observed the consumer behaviour changing? Thankfully, we design and market a virtual product that can be propositioned remotely, explained over audio-video and easily traded digitally. Being always ahead of the curve on digital readiness (be it as a social forum for explaining the products, a transaction platform for buying and selling as well as digital customer care solutions for post-purchase service) we have been seeing more and more investors interacting with us digitally; over the last 5-6 years. So, in a way, I can say that we were prepared for this – we just had to scale up fast. Key changes I observed in investor behaviour are three: much higher traffic on our social and digital assets due to anxiety as well as curiosity, deeper interaction at almost every social touch-point (as a result of more time at their disposal) and a change in product mix towards both opportunistic short and very long-term products. As I said, some of it we anticipated and were ready for and a good part of it was down to quick and thorough adaptation by the team and the ecosystem. I must say a few words about the intermediaries – the mutual fund distributors/ advisors. We call them partners. They have been adapting very fast to digitization. Adoption of our digital transaction platform Business Easy, attending various training sessions to upskill/ refresh themselves as well as engaging very meaningfully on social media with their investors; they have been quick, comprehensive and positive. Q. In these uncertain and stressful days, how are you communicating with your audience? They are finding us rather than we finding them! Our social handles are buzzing with an unprecedented number of conversations, our partners are sharing almost double the usual number of content pieces with their investors and our sales teams are strengthening our distribution partnerships with stronger and deeper content integration. The focus is on product knowledge, correct usage, right investment habits in a situation like this and innovative products that address some opportunities that this crisis has thrown up. On another note, I want to talk about a very successful and deeply appreciated initiative, ‘Wealth of Talent’. This is aimed at our distribution (channel) partners and their families. We have encouraged them to shoot videos or photographs of themselves (or their family members) singing, dancing, drawing, exercising, cooking etc and upload the same on FB page called Wealth of Talent. We have an overwhelming number of videos on the page but more importantly, very grateful partners who are happy that their hidden talent (as well as their sons’ and daughters’) was recognised by the world; thanks to Nippon India Mutual Fund! Q. Have you introduced any new tools to empower your employees to deal with consumer queries? We were digitally-enabled to a large extent. Our IT team was quick to roll-out robust video interaction solutions that could easily handle larger number of participants. Our partners across social listening, ORM as well as marketing solution development were quick to scale up to higher volume, frequent reporting and higher output. We also rolled out many internal initiatives aimed at team bonding, connect and relaxation. All this ensured that our response, as an organization, has been as good as ever, if not better than ever! Q. Are you using this time to upskill them? Yes, there's suddenly more time on everyone’s hands. In a city like Mumbai, where a large number of us are based, one easily saves between 3-5 hours everyday due to work from home. Add to that less time wasters like extended lunch hours, and there is more time on everyone’s hands. Hence, even the regular work reviews are deeper, with concepts explained patiently, doubts asked freely and more data analysed. Add to that the very pertinent training sessions curated by the HR team and various vendor partners, and we have a rich menu of options to choose from. We also encouraged teammates to enroll for outside certification programmes (many institutions and universities have offered a wide range of courses) and many have opted for those too. Q. How do you see the BFSI industry shaping up after the lockdown? Parts of it like Insurance – which will have the least impact – will actually benefit from better appreciation of life’s uncertainties and increased saving/ reduced spending. They will be ready with innovative products, go-to-market processes and impactful communication solutions. Investment Services like ourselves will have to wait a little longer before the recovery is apparent before the volumes are back but then, in the meanwhile, we need to adapt quickly to changing consumer behaviour like securing long-term wealth, focusing on child education and well-being products and short-term recovery linked products. Asset financing and NBFC related business have a longer road to recovery but I am sure keeping in close touch with consumers and being on the toes for quick adaptation will help the more agile ones recover faster. Q. Tell us a bit about your partnership with business channels. What role do you play there? Television is a medium with the largest reach as well as considerable impact. We have been successfully partnering with them to get the right solutions to investors which are tailor-made for the current market scenario. I played the matchmaker here between the channel editors that wanted appropriate, relevant content to guide their viewers (in terms of right products to invest in) and our business team that wanted these products to be presented well and made visible. So briefing the editorial teams, liaising with them to shape powerful content and developing appropriate ads to leverage the association; were the key tasks, apart from the media buying and spot scheduling part. These partnerships are now growing beyond television and towards quality, respectful print publications that want to bring the cutting edge, more relevant products to their readers. Q. What does your media plan look like? Which medium gets your lion's share? Digital and Television, quite understandably. However, we keep observing, evaluating all media alternatives and deploy the most appropriate one given the communication and business task. Q. How are you doing your bit to help the society in these certain times? Nippon Life India AMC was the first Mutual Fund and amongst the first BFSI companies to donate a sum of Rs 5 crore to PM CARES as well as CM Relief Fund. Apart from our CSR funds, each and every employee contributed a minimum one day’s salary towards this. Many of us still proudly display badges on our social media profiles that show how proud we are for having achieved this feat. As mentioned above, we are among the first BFSI companies to fully enable our partners to work from home (digital platforms and scaling up) and also among the most resourceful ones in terms of marketing materials that help them to generate and fulfil leads. We have been regularly putting up useful and impactful communication to facilitate healthcare workers. We have also trained our employees (when our branches reopened) in guiding our investors properly about COVID-19 control measures and we actively called them ‘COVID Warriors’.

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