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10 top mutual funds you MUST own

By Kayezad E Adajania, Outlook Money
Last updated on: December 06, 2006 10:29 IST
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Throughout the year, on several occasions, Outlook Money tells you to invest in mutual funds. And now we come to you to say it one more time. Rational thinking says that the equity markets cannot go much higher than the current levels. Yet, who knows?

With each milestone that the Sensex crossed in the past year, experts claimed that a big correction was due. Even today, stockmarket experts do not see much steam in the markets for the next one year.

Yet, on November 22, the Sensex closed at another all-time high of 13,706.53. By the time you read this, don't be surprised if there has been another high. So, what do you do?

Multiple investment options are at your service, but none are as regulated or sharply focused on you, the small investor, as mutual funds.

10 Top Mutual Funds*

DSP ML Opportunities Fund

Franklin India Flexi Cap

HDFC Equity Fund

HDFC Top 200

Prudential ICICI Dynamic Fund

Reliance Vision

SBI Magnum Contra

SBI Magnum Global 94

Sundaram BNP Paribas Leadership

Sundaram BNP Paribas Select Midcap

Click on each fund to find out why you MUST buy it.

* The fund names are in alphabetical order and not in order of any ranking

Outlook Money gives you a list of 10 diversified equity schemes that must form a part of your core portfolio. Why 10? Because putting all your eggs in one basket is risky and it is necessary to diversify across schemes. Because 10 is an easy number of schemes to monitor; it is difficult to manage too many.

Because if Nobel laureate Harry Markowitz showed the risk reduction benefits of holding a diversified portfolio, academicians Evans and Archer, showed that most of the risk reduction due to diversification takes place with the aggregation of eight to 10 securities.

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Kayezad E Adajania, Outlook Money

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