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Diversified Equity Funds

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Diversified funds and large AUM

  • Too small AUM is troubling and too huge AUM is troubling as well.
  • When the scheme is too small, expense ratio / fund management charges will be high
  • Because of its low AUM (and obviously low SIP money coming in), in a down trending market, the fund manager might find opportunities to buy but the scheme might not have cash.
  • On the other hand, if the scheme AUM is too high, finding opportuntiies in accordance to the scheme mandate will be difficult. We have seen this problem in the case of DSPBR Microcap Fund because it invests only in smallcap stocks.
  • ICICI Prudential Value Discovery Fund is a multicap fund with AUM of 15588 cr.
  • Yes. It has large AUM but I do not think it worriesome becuase it has an experienced fund manager who has the freedom to invest across all marketcaps and is not restricted to only one marketcap.
  • ICICIPru Value Disco falls between HDFC Equity Fund has AUM of 16653 Cr and Franklin India Prima Plus Fund with 9930 Cr in this category. These are the top 3 schemes
  • So. Yes. Continue your SIPs
  • Dated: Feb 21, 2017

Best multicap for a 5-year period

  • A 5-year period is an ample time for even midcaps to perform well. HDFC Midcap Opportunities Fund is a good one in this area.
  • If however, you wish to go for multicaps for other reasons, study ICICIPru Value Discovery Fund once.
  • Dated: Feb 21, 2017