grok ranking among 1d, 3y mf on 13th may 2025

 

Ranking of Top 9 Mutual Funds for Investment

Based on the provided document, I’ve ranked the top 9 mutual funds primarily by their 1-day return (1D) as a proxy for recent performance, while also considering 3-year annualized returns for long-term consistency and fund size for stability. The funds are ranked as follows, with reasoning:

1. Bank of India Flexi Cap Fund Direct Growth
   • 1D Return: +4.37%
   • 3Y Annualized Return: 25.63%
   • Reason: Highest 1-day return among the listed funds, indicating strong short-term momentum. The 3-year annualized return is robust, suggesting consistent performance. Suitable for investors seeking high growth in a flexi-cap fund.
2. HSBC Flexi Cap Fund Direct Growth
   • 1D Return: +4.25%
   • 3Y Annualized Return: 23.73%
   • Reason: Second-highest 1-day return with a solid 3-year performance. Its flexi-cap nature offers diversification across market caps, balancing risk and growth.
3. Motilal Oswal Flexi Cap Fund Direct Growth
   • 1D Return: +3.89%
   • 3Y Annualized Return: 27.44%
   • Reason: Strong 1-day return and the highest 3-year annualized return among flexi-cap funds, indicating excellent long-term growth potential. Large fund size (₹4,01,420) adds stability.
4. Bandhan Focused Equity Fund Direct Growth
   • 1D Return: +3.82%
   • 3Y Annualized Return: 22.63%
   • Reason: High 1-day return with a decent 3-year return. Focused equity strategy may suit investors comfortable with concentrated portfolios for potentially higher returns.
5. ICICI Prudential Focused Equity Fund Direct Growth
   • 1D Return: +3.65%
   • 3Y Annualized Return: 27.17%
   • Reason: Good 1-day return and strong 3-year performance. Its focused approach and large fund house backing make it a reliable choice for growth.
6. Quant Flexi Cap Fund Direct Growth
   • 1D Return: +3.63%
   • 3Y Annualized Return: 24.39%
   • Reason: Competitive 1-day and 3-year returns. Fund size (₹7,016.38 Cr) indicates stability, and its flexi-cap strategy offers flexibility across market segments.
7. HDFC Retirement Savings Fund Equity Plan Direct Growth
   • 1D Return: +3.52%
   • 3Y Annualized Return: 24.65%
   • Reason: Solid 1-day and 3-year returns. The 5-year lock-in may appeal to long-term investors, particularly those planning for retirement.
8. Franklin India Flexi Cap Fund Direct Growth
   • 1D Return: +3.48%
   • 3Y Annualized Return: 23.99%
   • Reason: Decent short-term and long-term returns. Its flexi-cap approach provides diversification, making it suitable for balanced growth seekers.
9. Bandhan Small Cap Fund Direct Growth
   • 1D Return: +3.93%
   • 3Y Annualized Return: Not explicitly listed, but 1-year return is strong (27.10% XISRI).
   • Reason: High 1-day return, but small-cap funds carry higher risk. Suitable for aggressive investors with a high-risk appetite.

Allocation Strategy for ₹70 Lakh Across Top 9 Funds

To maximize returns while managing risk, I recommend a diversified allocation across these funds, balancing high-growth flexi-cap and small-cap funds with stable large-cap options. Assuming a maximum of 9 funds, here’s a suggested split:

• Bank of India Flexi Cap Fund Direct Growth: ₹10 Lakh (14.29%)
  • High recent performance and strong 3-year returns.
• HSBC Flexi Cap Fund Direct Growth: ₹9 Lakh (12.86%)
  • Solid short- and long-term returns, diversified across market caps.
• Motilal Oswal Flexi Cap Fund Direct Growth: ₹9 Lakh (12.86%)
  • Best 3-year returns, large fund size for stability.
• Bandhan Focused Equity Fund Direct Growth: ₹8 Lakh (11.43%)
  • High 1-day return, focused strategy for growth.
• ICICI Prudential Focused Equity Fund Direct Growth: ₹8 Lakh (11.43%)
  • Reliable fund house, strong long-term performance.
• Quant Flexi Cap Fund Direct Growth: ₹8 Lakh (11.43%)
  • Large fund size, flexible allocation across market caps.
• HDFC Retirement Savings Fund Equity Plan Direct Growth: ₹7 Lakh (10%)
  • Long-term focus with lock-in, suitable for stability.
• Franklin India Flexi Cap Fund Direct Growth: ₹7 Lakh (10%)
  • Balanced flexi-cap approach for diversification.
• Bandhan Small Cap Fund Direct Growth: ₹4 Lakh (5.71%)
  • High risk-reward, smaller allocation due to volatility.

Total: ₹70 Lakh

Investment Strategy (40 Lines)

The investment strategy focuses on growth with risk diversification for a ₹70 Lakh portfolio. The allocation prioritizes flexi-cap funds (e.g., Bank of India, HSBC, Motilal Oswal) due to their flexibility across large-, mid-, and small-cap stocks, offering a balance of growth and stability. These funds, with strong 1-day (3.63%–4.37%) and 3-year returns (23.73%–27.44%), are ideal for capturing market upside while mitigating sector-specific risks. A smaller allocation to small-cap funds (e.g., Bandhan Small Cap) targets high-growth opportunities, but limited to 5.71% due to higher volatility (Very High Risk). Focused equity funds (e.g., Bandhan, ICICI Prudential) are included for concentrated bets on high-potential stocks, enhancing returns. The HDFC Retirement Savings Fund adds a long-term, stable component with a 5-year lock-in, suitable for wealth accumulation. The allocation is diversified across 9 funds to reduce fund-specific risk, with no single fund exceeding 14.29% of the portfolio. Risk management is achieved by favoring direct plans (lower expense ratios) and funds from reputable AMCs (e.g., ICICI, HDFC). Investors should adopt a long-term horizon (5+ years) to ride out market volatility, given the "Very High Risk" rating of most funds. Regular portfolio reviews (every 6–12 months) are recommended to rebalance based on performance and market conditions. SIP continuation can be considered for rupee-cost averaging, especially in volatile small-cap funds. Monitor macroeconomic factors (e.g., interest rates, inflation) as they impact equity markets. For liquidity, maintain a small portion in liquid funds (e.g., Edelweiss Liquid Direct Growth) outside this allocation. This strategy balances aggressive growth with prudent risk management for optimal wealth creation.