Let us first look at the top 10 best performing funds of 2016

DSP BlackRock Natural Resources and New Energy Fund 55.45
DSP BlackRock World Mining Fund 54.17
SBI Magnum COMMA Fund 40.53
DSP BlackRock World Gold Fund 40.03
HSBC Brazil Fund 39.18
Kotak World Gold Fund – Standard Plan 36.51
CPSE Exchange Traded Fund 29.07
ICICI Prudential Banking and Financial Services Fund 27.79
Birla Sun Life Global Commodities Fund 27.36
SBI PSU Fund 26.25

Data source: vro

Do you see any familiar names? This is what I find amusing, but not surprising –

  1. 9 funds are not rated
  2. 8 funds have AUM less than Rs 300 Cr
  3. 5 funds are International fund
  4. 6 funds are commodities fund
  5. 1 fund has AUM of just Rs 2Cr (!)

What is the probability of these funds performing well in 2017?