With the mutual fund industry recording stellar inflows in 2017, even as investors may be on the lookout for top rated mutual funds, research firm Morningstar’s analysts have assigned a Gold rating to three large, flexi, and mid-cap funds from ICICI Prudential Mutual Fund and Franklin Templeton Mutual Fund. According to a report by Morningstar, SBI small and midcap fund tops the list of best performers with returns of 78.66% in the year 2017, followed by L&T Emerging Business Fund with returns of 66.5%, both from the smallcap category. From the large-cap category, IDFC Focussed Fund topped the list with returns of 54.4% followed by ICICI Prudential Next 50 Index which returned 45.6%. We take a look at ‘Gold’ rated mutual mutual funds from Morningstar.
Franklin India Prima-Small/ Mid Cap category
The fund had returned more than 35% in 2017. The analysts at Morningstar observe that the prerequisites for the long-term sustainability of the fund are a skilled manager and a solid investment process. “Pleasingly, Franklin India Prima Fund makes the grade on both counts,” Morningstar noted in a note. The fund is managed by R Janakiraman. “A seasoned manager at the helm, an investment process that can be easily applied across market conditions, and a strong parent in Franklin Templeton, which boasts a strong investment culture, make this fund a best-in-class offering,” says the Morningstar report.
ICICI Prudential Top 100- large cap category
The fund had returned around 25% in the preceding year 2017. “ICICI Prudential Top 100 Growth has been upgraded to our highest Morningstar Analyst Rating of Gold from Silver. The fund’s highly competent and experienced team, robust investment process, and well-structured portfolio methodology strengthen our conviction,” says the Morningstar report. The analysts note that the fund has delivered risk-adjusted returns well ahead of competitors over the long term. “The fund has also weathered the market downturn better than category peers and has provided protection from downside risk. There may be difficult quarters because of its value bent, but under S Naren’s stewardship, the fund should pay off handsomely in the long run,” Morningstar noted.
ICICI Prudential Dynamic– Flexi Cap
The fund has returned more than 20% in 2017. “ICICI Prudential Dynamic Growth remains a credible investment option with Sankaren Naren’s distinct skill of uncovering value opportunities with a judiciously applied investment process, making a strong case for an upgrade of its Morningstar Analyst Rating to Gold from Silver,” analysts at Morningstar said.