With markets having seen a stellar rally in the last 1-year, it may just be the right time to be circumspect before investing. Putting a large corpus is not advisable as the Nifty and Sensex are trading at significantly higher p/e multiples than past averages. It is therefore advisable to look for Systematic Investment Plans (SIPs) that tend to hedge risks, when compared to investing lumpsums. We have chosen 4 SIPs largely based on high ratings from Crisil, Morning Star and Value Research.
Canara Robeco Bluechip Equity Fund
Canara Robeco Bluechip Equity Fund has been rated 5-star by both CRISIL as well as Morning Star. Value Research too has accorded the same 5-star rating. Individuals can commence a Systematic Investment Plan with a sum of Rs 1,000.
The performance of the fund has been good, which is one of the reasons that it has been highly rated. The corpus of the fund like some other bigger peers is not too high at around the Rs 2,500 crores. Almost 97 per cent of the funds are parked in equity, while the balance are placed in cash and cash equivalents.
The fund has given a 1-year returns of as much as 53%, while the 3-year returns has been 15% on an annualized basis. Canara Robeco Bluechip Equity Fund is a large cap fund and funds are invested in companies with a high capitalization.
Mirae Asset Emerging Bluechip Fund
This is another fund that been rated 5-star by Crisil, Morning Star and Value Research. An SIP of Rs 10,000 each month for the last three years would have given a corpus of a solid Rs 5.38 lakhs. The annualized 3-year returns from the fund is 17%, while the 5-year returns is as high as 20%.
The fund has holdings in prominent banks like ICICI Bank, HDFC Bank, Infosys and Axis Bank. The top 10 holdings of the fund forms almost 50% of the holdings. One can start an SIP through an amount of Rs 1,000 each month. One can also invest lumpsum, where the minimum amount required would be Rs 5000.
This is one of the larger equity schemes with assets under management of more than Rs 16,000 crores.
Invesco India Midcap Fund
For those willing to take higher risk for higher returns, one can consider midcap funds. The Invesco India Midcap Fund is rated 5-star by Crisil and has a 4-star rating from Value Research. The fund also has a 5-star rating from Morning Star.
Given that this is a midcap fund stocks invested and holdings are largely in midcap companies. Among the top 5 holdings of the Invesco India Midcap Fund includes names like 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 for the last 36 months would have yielded a sum of Rs 5.04 lakhs currently.
Axis Small Cap Fund
This fund has been rated 5-star by Crisil, Morning Star and Value Research. Small cap equity mutual funds are probably the riskiest class of equity assets and hence one should be careful. Returns can be volatile and hence 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 scheme has holdings in stocks like Galaxy Surfacants, Tata Elxi, Fine Organics, Brigade Enterprises etc.