Originally posted by manish962 Originally posted by smartcat If managed well, those P/E ratio funds should offer good risk adjusted returns. But they don't seem to be doing that Tata Equity PE fund, for example, has returned 24% CAGR in the past 7 years. However, its NAV has been as volatile as any other plain vanilla equity MF. Those seeking a smoother ride should opt for HDFC Balanced fund. It has been around for 17 years now and has offered 21% CAGR. I would prefer HDFC Prudence to HDFC Balanced fund as Prudence fund has larger AUM (6200 Cr.) and the returns are higher than that of Balanced fund. Also Prudence fund is since 1994 and is well managed by Mr. Prashant Jain.

I second that. HDFC Prudence is very well managed balanced fund by Mr. Prashant Jain and have slightly higher returns 19.9% over 5 years as compared to HDFC Balanced's 17.29%. Though, past performance may not guarantee same performance in future.

Originally posted by barla   how is a fund better, based on its investment objectives and how closely it follows it     OR   simply on returns.

Any asset class that gets you returns higher than a bank FD involves some sort of risk - you need to keep that in mind.

Go for Birla Sunlife Dynamic Bond Retail (G) and Birla GSF LT (G) - the former is a long term debt fund and the latter is a gilt (Govt Securities Fund) fund.

If you hold these funds for something like 3 or 4 years, you should get something like 9 to 10% CAGR.

Risk is short term negative or low returns if interest rates continue to rise. But as you said, you are willing to hold on to the funds for a few years.

Originally posted by vijaygawde This appears to be one good fund for those who must invest in Mutual Fund

My dad did an SIP in this and HDFC prudence for the last 1 and a half years or so on an advice from his agent . Returns have been close to 20% in this . The unfortunate part is he isnt willing to do anymore .