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Presenting, MC30's largest equity fund entrants

We chose two schemes from the large-cap category and three from the flexi-cap segment

August 18, 2021 / 09:17 AM IST

MC30, a curated basket of 30 best mutual funds schemes, is finally here. Of the 30 schemes, 15 are equity funds.

Where do we begin? There are 355 open-ended equity schemes across 11 equity categories, as per the Association of Mutual Funds of India (AMFI). Of these, MC30 does not include large & midcap, dividend yield, value, contra, sector or thematic funds. We avoided schemes whose definitions were too broad, leading to differences among fund houses in their interpretation.

Of those that remained, we chose two schemes from the large-cap category and three from the flexi-cap segment. To be sure, these numbers may not remain the same. For instance, in future, MC30 could have, say, one large-cap fund more and a flexi-cap scheme less. But our endeavour is to keep the number of actively-managed large-cap funds to the bare minimum. In one of our forthcoming pieces we’ll tell you why.

Check out MC30 – our curated basket of 30 mutual fund schemes

Size rules

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Some MF scheme categories do not get ruffled by large sizes. Large-cap funds – those that invest in the 100 largest listed companies – fall in that list.

Our two picks in this category come with a combined size of a little over Rs 31,000 crore.

Elsewhere, there are 26 flexicap funds. These funds can invest across large mid and small-sized companies. The average size of this category is Rs 4,490 crore, as per Value Research figures. Our two flexi-cap funds come with a combined size of Rs 71,206 crore. Here again, a large size is no hindrance as flexi-cap funds can choose how much they want to invest across large, mid and small sized companies. As their sizes grow, they can easily invest a chunk of their corpus in large-size companies and still remain sufficiently liquid.

Let’s then present our large-cap and flexi-cap fund picks.

Equity:Large-cap

Mirae Asset Large Cap Fund

Mirae Asset Large Cap Fund (MALCF) is among the largest equity funds. Gaurav Misra and Harshad Borawake jointly manage the fund.

Also read: How to use MC30?

Canara Robeco Bluechip Equity Fund

At Rs 3,691 crore, Canara Rob Bluechip Equity Fund (CRB), the scheme packs in quite a punch. Shridatta Bhandwaldar has managed this fund since 2016. Despite being a large-cap scheme, it has managed to beat its benchmark consistently.

Also see: The complete MC30 basket of mutual fund schemes

Equity:Flexi-cap

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund (PPFC) is one of the few India-focussed diversified equity schemes that also invests in overseas markets (almost entirely in the US markets and up to 35 percent of the corpus). That is one key reason why it has been one of the best-performing equity funds in its category in recent years.

 

Last year, when equity markets fell, it smartly deployed cash without fear in volatile markets after COVID-19 pandemic was declared. That is also why the fund has done well in rising as well falling markets.

 Also read MC30: The methodology behind the curated basket of mutual fund schemes

 Kotak Flexicap Fund

At a corpus size of a little over Rs 37,000 crore, Kotak Flexicap fund (KFF) is the largest scheme in this category. Harsha Upadhyaya has been managing the fund since 2013.

Also see: The complete MC30 basket of mutual fund schemes

Due to its large size, the fund’s portfolio tilts towards large-cap stocks.

 UTI Flexicap Fund

Like many multi-cap schemes, UTI Flexicap Fund (UFF) too changed into a flexi-cap scheme, a new category created by SEBI last year. Ajay Tyagi has been managing this fund since 2016.

Also read: How to use MC30?

The fund doesn’t churn its portfolio much. Tyagi manages his portfolio with reasonable conviction. Nearly 80 percent of the stocks remains in the portfolio for five or more years.
Kayezad E Adajania heads the personal finance bureau at Moneycontrol. He has been covering mutual funds and personal finance for the past two decades, having worked in Mint and Outlook Money magazine. Kayezad was the founding member of Mint’s personal finance team when it was set up in 2009.
first published: Aug 18, 2021 09:17 am

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