New Mutual Funds added to Goalwise recommendations


In the first week of October, we added some new funds to our recommendation list. In general, we increased the number of equity Mutual Funds from top 2 to top 3 for all our equity-oriented goals.

Why did we do this?

Two reasons:

  • More diversification: For our users investing in multiple equity-oriented goals, only two equity funds were getting restrictive. Does this mean that more is always better - No, not necessarily. Beyond four funds in a category the additional diversification would be marginal and probably not worth the trouble of maintaining it.

  • More differentiation: We added a Mid & Small cap fund to our high risk category of equity funds thus differentiating them from our moderate category where we have only multi-cap funds to reflect the risk level better. Our low risk category appropriately has only large cap funds.

We have added the following funds:

  1. DSP Blackrock Tax Saver Fund in the Tax Save goal

  2. Kotak Select Focus Fund in Wealth, Retirement and purchase goals (Moderate risk profile)

  3. Canara Robeco Emerging Equities Fund in Wealth, Retirement and purchase goals (High risk profile)

  4. IDFC Ultra Short Term Fund in the Smarter Savings goal.

How have these funds been chosen?

These funds have been chosen by the same Mutual Fund selection algorithm - it is just that instead of choosing top 2 now we are now choosing top 3.

Each of these funds has been a consistent out-performer in their category over last several years. For eg Canara Robeco has outperformed the average Mutual Fund in its category every year since 2009. (in case you are wondering, our higher ranked ICICI Value Discovery has done that since 2008 and so on!). So your money is in very good hands as always, only better overall now. :)

Check us out here and let us know what you think.