During a time of sharp market decline, you should consider mutual funds that offer investors good value. Crisil’s No. 1 rated mutual funds are good options for starting a systematic investment plan. Crisil Mutual Fund Ratings covers a wide range of categories across equity, debt, and hybrid assets. CMFR is different from most ranking models, which only evaluate returns or net asset value, as it also evaluates portfolio-based attributes
IDBI India Top 100 Equity Fund
IDBI India Top 100 Equity Fund is ranked No. 1 by Crisil. The fund has generated decent returns over the last few years by investing in the top 100 companies. A 5-year annualized return from the fund has been 10.24%, while a 1-year return has been 13%. Several stocks of the fund are held by the fund, including Reliance Industries, HDFC Bank, ICICI Bank, and Infosys. The assets under management are not like some of its peers and are about Rs 560 crores.
An SIP started with Rs 10,000 three years ago would have today fetched about Rs 4.64 lakhs. Thus, Rs 3.6 lakhs of amounts would have given Rs 4.64 lakhs. The one good thing right now is that the Sensex and the Nifty have dropped almost 14% from peak levels, which makes SIPs attractive at these levels. It is difficult to predict the outcome of the stock market, but one would need patience to generate returns. IDBI Top 100 also has a good rating from Value Research, which has rated the fund 4-Star.
UTI Mastershare Fund
UTI Mastershare Fund has also been rated No. 1 by Crisil, just like the IDBI India Top 100 Equity Fund. The scheme was started way back in 1986, making it one of the oldest in the country. The assets under management are close to Rs 10,000 crores. An investor can start a SIP with a small amount of Rs 100. The 3-year returns from the scheme is 14% on an annualized basis, while the 5-year returns are around that 10% mark.
Nearly 96.8% of the fund’s holdings are invested, while the rest is held in cash and cash equivalents. Stocks held by the fund include ICICI Bank, HDFC Bank, Infosys, and Reliance Industries. This fund is suitable for those investors who can commit to investing for a longer period of time, such as 5 to 7 years to generate returns. The net asset value under the scheme is Rs 179.49, which is the price investors will have to pay to buy the units.
PGIM India Midcap Opportunities Fund
Investing primarily in equity & equity related instruments of mid-cap companies is the Scheme’s objective. Since this fund invests in midcap companies, its risks are higher than largecap funds, since midcap companies tend to have volatile price swings. Whatever the case may be, PGIM India Midcap Opportunities Fund is also rated No. 1 by Crisil, as are the two other funds listed above.
Investing in this fund has provided around 30% returns on an annualized basis over the past three years. Fund returns have also been solid over the past five years at about 16% on an annualized basis. Persistent Systems, Cummins India, ABB, the Fedeal Bank, HDFC Bank, etc. are all holdings of the fund. As far as midcap funds are concerned, SIPs are preferable since they tend to produce volatile returns.
Investing in mutual funds involves risk. We have highlighted the ratings of Crisil and provided details thereof. Investors should consult a professional advisor before investing in mutual funds, especially equity mutual funds. The Author and Publication, would not be responsible for losses incurred.