Just starting this thread in the hopes that people share actionable data about the funds they invest in.
These are the funds I am investing in, please do share the funds you are investing, the reason why and the lessons learned.
1. Mirae India Equity Fund
The fund has pretty much consistently performed well vs the category. Also, it has done well in containing the risks on the downside vs the category. Oh, this is a multi-cap mutual fund, meaning this fund has the flexibility to invest across market caps. This category of funds are the best choice when it comes to building your core portfolio.
Monthly rolling returns of the fund.
Trailing returns
Upside capture ratio of the fund: 101
Downside capture ratio of the fund: 93
Source: Morningstar
Upside Capture Ratio measures a manager’s performance in up-markets relative to the index. A value over 100 indicates that a fund has outperformed the benchmark during periods of positive returns for the benchmark.
Downside Capture Ratio measures the manager’s performance in down-markets relative to the index. A value of less than 100 indicates that a fund has lost less than its benchmark when the benchmark has been in the red.
The fund is managed by Neelesh Surana, one of the best fund managers in India. He also manages the Emerging Bluechip and the Mirae ELSS fund which again are some of the best performing funds in their respective categories. The investment philosophy of the fund is a top-down down approach with a large-cap bias. meaning it predominantly invests in large-cap stock with select mid-caps acting providing the returns kicker.
This fund doesn’t take any macro calls or engage in special situation investing. It purely focuses on companies that have a sustainable advantage and are sectoral leaders with pricing power.
2. Quantum liquid fund
I use Quantum Liquid Fund for my cash management needs. This is a unique fund because this doesn’t invest in private corporate bonds and invests only in T-bills and PSU papers with AAA credit rating. The fund doesn’t take any credit risks and is as pure as an accrual fund can get.
The recent IL&FS crisis showed the dark side of Liquid funds doing stupid shit like taking credit risk to juice up the returns This fund has clearly put out a communique stating that it will only invest in T-bills (Govt) and PSU bonds which means that the credit risk is almost 0.
Funds from Motilal, Principal, Tata, and Union lost close to 3 months worth returns in a single day.
GIven that Liquid funds can only hold papers with residual maturity of less than 91 days, there is very little interest rate risk here.