Some mutual funds in India that I like

When I first started researching mutual funds in India, I found it to be quite overwhelming. There were so many categories of funds and each had a growth and dividend option just to make things more confusing. There were some "new" categories like FMP (Fixed maturity plans), MIP (Monthly income plans), Principal guarantee funds (like thats ever possible if your fund has any kind of equity exposure :-)), ULIPs etc etc. When the dust settled from my research, I thought that I could possibly set up a decent portfolio with 4 or 5 funds (one index fund, one debt fund, one mid-cap fund and one diversified equity large cap fund)

For the index fund category, I like the UTI Master index - its one of the oldest index funds and has a solid record for over 5 years. It has a lower than average expense ratio in its category and no front end load (as is with most index funds).

In the debt fund category, I went with the HDFC Floating rate fund ST, mainly because of its low expenses and low sensitivity to interest rate fluctuations.

In the diversified large cap category, the 2 funds I like HDFC Top 200 and Reliance Growth

In the mid-cap category, the Sundaram Mid cap fund stands out IMO

If you are looking for a balanced fund, then take a look at the HDFC Prudence fund. It has a stellar record going back 10 years. I have never heard anyone say or write one negative thing about this fund - its a winner and cuts down on volatility since it holds about 20% of its portfolio in bonds

I think one can stay away from the FMP's, ULIPs, MIPs, ultra short/liquid and long term debt funds, principal guarantee funds, sector funds and fund of funds etc - stick to "bread and butter" funds and still create a well diversified portfolio that will do well over the long term.

P.S - I wouldnt touch a ULIP scheme with a 10 foot pole!