4 SIPs to invest based on high ratings
Canara Robeco Bluechip Equity Fund
The Canara Robeco Bluechip Equity Fund has been rated 5 stars by CRISIL and Morning Star. Value Research also gave the same 5-star rating. Individuals can start a systematic investment plan with a sum of Rs 1,000.
The fund’s performance has been good, which is one of the reasons why it was highly rated. The body of the fund, like some other larger peers, is not too large at around Rs 2,500 crore. Almost 97% of funds are invested in equity, while the remainder is invested in cash and cash equivalents.
The fund has given 1 year returns of up to 53%, while 3 year returns have been 15% on an annualized basis. Canara Robeco Bluechip Equity Fund is a large cap fund and the funds are invested in large cap companies.
Mirae Asset Emerging Bluechip Fund
This is another fund that has been rated 5 stars by Crisil, Morning Star and Value Research. A SIP of Rs 10,000 every month for the past three years would have yielded a body of a solid Rs 5.38 lakhs. The fund’s 3-year annualized returns are 17%, while the 5-year returns are 20%.
The fund has stakes in leading banks such as ICICI Bank, HDFC Bank, Infosys and Axis Bank. The top 10 holdings of the fund make up almost 50% of the holdings. One can start a SIP for an amount of Rs 1,000 each month. One can also invest in a lump sum, where the minimum amount required would be Rs 5000.
This is one of the largest equity programs with assets under management of over Rs 16,000 crore.
Invesco India Midcap Fund
For those who are willing to take a higher risk for higher returns, one can consider midcap funds. The Invesco India Midcap Fund is rated 5 stars by Crisil and 4 stars by Value Research. The fund is also rated 5 stars by Morning Star.
Since this is a mid-sized fund, the stocks invested and holdings are largely in mid-sized companies. Among the top 5 holdings of the Invesco India Midcap fund are names such as Vintani Organics, Gland Pharma, Mphasis, Voltas and Endurance Technologies. The minimum SIP that one can invest is Rs 500. The net asset value under the growth plan is currently Rs 69.50. A sum of Rs 10,000 invested each month over the past 36 months would have yielded a sum of Rs 5.04 lakhs currently.
Axis Small Cap Fund
This fund has been rated 5 stars by Crisil, Morning Star and Value Research. Small-cap equity mutual funds are probably the riskiest equity asset class so you have to be careful. Returns can be volatile and therefore, if an individual has an appetite for risk, only he should invest.
The net asset value under the growth plan is currently Rs 46.98. The program holds stakes in stocks such as Galaxy Surfacants, Tata Elxi, Fine Organics, Brigade Enterprises, etc.
About the Author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline dailies including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines such as Dalal Street Investment Journal and Oman Economic Review. His strong point remains stocks, mutual funds and tax planning.