OLM Elite: Safe Player

Cautious investors should look at an investment horizon of 3 to 5 years at least and are willing to take less risk with their money. The funds selected for them have passed this test with performance history that spans both the down and up cycle of the stock markets. All these short-listed funds have exposure mostly to the top 100 companies by size, which have great managements and good businesses that they operate. Returns from these funds will be less volatile, which should be the draw when investing in them.

Birla SL Equity

The fund invests in stocks across market capitalisation, with a higher tilt to large-cap stocks, which ensures stable and predictable returns. This fund does well when the markets do well and manages to hold on when the markets go down—a desirable trait. A consistent performance in beating the benchmark makes it stand out.

Franklin India Bluechip

If you are looking for a long-term investment with market-beating returns and undue risk–this is the fund. The fund’s merit lies in protecting the downside and the ability to participate in market rallies earlier than others. This fund is benchmarked against the BSE Sensex and has beaten the latter by quite a margin since its inception in 1993.

ICICI Pru Focused Bluechip Equity

This fund is your friend during volatile phase of the markets, when it manages the downside effectively. The fund’s mandate to invest most of its assets in large-cap blue chip stocks lend stability, which is expected by investors seeking safety in investments. The discipline to stay invested in quality large-cap stocks define the fund’s performance.

Invesco India Dynamic Equity

Don’t be distracted by this fund’s small asset base. It has all the promise to become a bigger fund over time. The small size also gives it the dexterity to move across market capitalisation and invest in quality stocks as defined in the fund’s investment strategy, which is well articulated and comprehensive.

UTI Equity

This is the iconic UTI Mastergain which was renamed in 2005. This fund has a large-cap orientation, which handles its performance efficiently when the stock markets fall. The long history, conservative approach and consistency have all aided this fund’s feat over the years, which has been a factor for investors across generations putting their money into this fund.

Read- The updated OLM Elite: The key to wealth creation is to know two things—what kind of investor are you and which funds to invest in

olmdesk@outlookindia.com