The mutual fund industry is at the Rs 25 lakh crore mark and much of the growth has come in the last five years and perhaps the next Rs 25 lakh crore could easily come in the next five years.
The growth has been driven by retail investors who have kept the faith and stay invested. However, the pace of investment has come down a bit in the last few months but the money is still coming in and that is a heartening fact.
So wishing the investors prosperity and patience, CNBC-TV18 in their special show ‘Samvat 2075’ spoke with MF experts Manoj Nagpal, MD & CEO, Outlook Asia Capital, Kaustubh Belapurkar, director - fund research, Morningstar Investment Advisors and Feroze Azeez of AnandRathi Financial Services on the outlook for the sector.
They also shared their rationale and technicals for picking mutual funds for investors benefit.
Nagpal prefers investing in ICICI Pru BlueChip Fund. He said it's a largecap fund, which manages volatility significantly and of the last 10 years, it has outperformed for 9 years and created alpha.
The other picks of Nagpal are Kotak Contra Fund, IDFC Infra Fund and Franklin India US Opportunity Fund.
Azeez said he has chosen Mirae Asset Equity Fund, which largely is a multicap fund with the focus towards largecaps and about 80-85 percent of the money is in largecap.
Azeez has picked ICICI Pru Focused Equity Fund, Kotak Engineering Equity Fund, SBI Focused Equity Fund.
However, going forward in the new regime, giving flexibility to the fund manager is going to be critical, especially due to diverging performance between midcaps and largecaps, he said.
Belapurkar said he has chosen HDFC Top 100 Fund. It was a popular fund but in the last few years, it has taken a volatile ride, he said, adding that the strategy of the fund is simple – to look for growth at reasonable price.
Belapurkar has picked AB Sun Life Frontline Equity Fund, Franklin Prima Fund and ICICI Value Discovery.