Making Investor Money Count- Business News
facebooktwitter

Business Today-Money Today Financial Awards: India's Best Fund Houses

Mutual funds act as a bridge between investors and markets. We honour fund houses that perform the best over the last one and three years

Equity markets ended 2014-15 with a bang, hitting new highs. The BSE Sensex rose 25 per cent during the year. This attracted investors to mutual funds. Investor folios rose from Rs 3.95 crore to Rs 4.17 crore between March 2014 and March 2015. Assets under management (AUM) rose from Rs 9,05,120.69 crore to Rs 11,88,690.32 crore.

Mutual funds act as a bridge between investors and markets. That is why we decided to honour fund houses that made risks that investors took with their hard-earned money worthwhile for them by giving high returns.

Methodology

We have chosen winners on the basis of performance of funds in the selected categories on the basis of one-year and three-year data ended March 2015. The number crunching was done by our Principal Research Analyst Avneet Kaur. The data was sourced from Accord Fintech-Ace Equity. In the equity category, we took equity large-cap, mid-cap, multi-cap and tax saving (ELSS) funds. We did not include small-cap funds as their number is few. In the debt category, we took income funds, dynamic bond funds, credit opportunity funds and short-term funds. We excluded funds meant to park idle funds and hybrid funds. Further, we chose funds with minimum AUM of Rs 1,000 crore that are at least three years old. For all the funds, we used quarterly returns, one-year trailing returns and three-year trailing returns ended March 2015. The returns were then ranked; the fund with the highest returns was ranked number 1.

For Equity Asset Management House of the Year, we added ranks of one-year CAGR and four quarterly returns to reach at a one-year score. We calculated the score for all the funds in our universe for all categories of funds separately. Based on this score, we chose top five funds from each category. The asset management company with the highest number of funds on top was declared the winner. In case of a tie, we chose the fund house with toppers in the most fund categories.

For Best Long Term Equity Asset Management House, we performed the same task, except for calculating the score. Here, we calculated a three-year score by adding all 12 quarter returns and three-year CAGR.

For the debt category, we calculated one- and three-year scores the same way as we did for equity funds. After calculating the scores, we chose the top 15 funds. The AMC with the highest number of funds in the toppers' list was declared the winner.

For Debt Asset Management House of the Year, we checked one-year scores, and for Best Long Term Debt Asset Management House, we took three-year scores. In case of a tie, the fund with the lower expense ratio was selected the winner.

For Asset Management House of the Year, we considered one-year score. We then chose top five performers for each category in equity and debt without repeating the fund of the same AMC. The fund house with most funds was declared the winner. We made sure that the winner had funds from all categories. If it was not the case, we manually checked in the category of funds. We then checked beyond Top 5 funds for the next best funds. For Best long Term Asset Management House, we followed the same methodology, except considering the three-year score.

SBI MUTUAL FUND

Winning Category: Best Long Term Equity Asset Management House

With an objective of setting benchmarks time and again through active management style based on fundamental analysis, SBI Mutual Fund has managed to capture the growth potential of the Indian equity landscape. With an investment philosophy rooted in 'growth through innovation', its comprehensive analytical lookout across sectors has helped it report excellent performance over long time frames. The investment matrix adopted on the lines of 'Environmental, Social and Governance' has held the fund in good stead.

SBI MF is one of the largest investment management firms in the country, managing investments of over 5.4 million investors.

"A disciplined fundamental research approach helps. It is imperative to look at a company holistically and not focus on how its stock may perform six months or one year down the line. We are looking at businesses that can generate sustainable value over long periods, such that the superior fund performance is not a flash in the pan" _-Navneet Munot, Chief Investment Officer, SBI Funds Management

FRANKLIN TEMPLETON INVESTMENTS

Winning Category: Best Long Term Debt Asset Management House & Best Long Term Asset Management House

With a  global experience of over 60 years, Franklin Templeton in India has not only managed to strengthen its presence in the country but has also delivered outstanding returns over the past few years. As a fund house, it has a wide experience of investing both in equity and debt. Value, patience and bottom-up approach are its core tenants when it comes to investing. With several funds that are over a decade old, it has been a consistent performer in the categories where it is present.

"Our investment process & risk management combined with long-term perspective have helped us. We endeavour to strike a balance between individual conviction, team collaboration and process efficiency by cultivating an experienced investment team" _-Harshendu Bindal, President, Franklin Templeton Investments - India

 RELIANCE MUTUAL FUND

Winning Category: Equity Asset Management House of the year & Asset Management House of the Year

Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani (ADA) Group, is one of the fastest growing mutual funds in India. As on 31st December 2015, it had Average Assets Under Management (AAUM) of Rs 1,56,948 crore and 57.73 lakh folios. Headed by an eternal optimist, the fund house just completed 20 years of existence.

"Equity funds are essentially bull products. You make money by being optimistic and taking the right calls ahead of markets. Our investment philosophy in equities is to create alpha and, therefore, build significant wealth for our investors" _-Sundeep Sikka, President & CEO, Reliance Capital Asset Management

ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LTD

Winning Category: Debt Asset Management House of the Year

India's second largest AMC is focused on creating long-term wealth via simple products, with an endeavour to bridge the gap between savings and investments. With its strong corporate governance, technology-enabled systems and risk-management systems, it has been well ahead of the curve at several instance in the ever changing financial landscape. Creating wealth over long term and delivering risk-adjusted returns remain the guiding principles of this AMC.

"Our core philosophy in fixed income has been safety, liquidity & returns, and we emphasise risk-adjusted returns and create wealth over the long term. This is achieved by investing in high credit fixed-income securities, managing interest rate risk and minimising liquidity risk. We have successfully demonstrated the ability to achieve this" _-Rahul Goswami, Chief Investment Officer for Fixed Income, ICICI Prudential Asset Management Company