We are 5 days into the new year and the year 2015 has begun with a bang for stock markets in India. In 2014 the Sensex rallied a huge 30 per cent and many analysts believe we are in for more this year, though 30 per cent returns this year is ruled out.
L&T Equity Fund has got a 5-star rating from Value Research Online. The fund has generated a one year return of 54 per cent, thus beating returns from the Sensex and the Nifty. The fund has invested heavily into blue chip stocks like Infosys, HDFC Bank, Larsen and Toubro, Axis Bank and State Bank of India. Should these index heavyweights gain, it is highly likely that the net asset value of these funds could go up. You can invest in L&T Equity Fund through the systematic investment plan with a small sum of Rs 1000 every month.
It's better to invest in the fund for the slightly longer term given the fact that there is a one per cent exit load that is levied for redemption within 365 days.
UTI Opportunities Fund
UTI Opportunities Fund is yet another large cap fund that has generated superb returns in the last one year. The fund has given a return of 44 per cent in the last one year. The return since launch is a huge 18 per cent, making it better than bank rate of returns. The portfolio of the fund comprises of stocks like Infosys, which has the largest weightage in its portfolio apart from stocks like ICICI Bank, HDFC Bank, TCS, Maruti Suzuki and Reliance Industries. You can invest in the fund through the SIP route with a small sum of Rs 500.
Franklin India Opportunities Fund
Franklin India Opportunities Fund has got a 2-star rating from Crisil. The one year return from the fund is a huge 62 per cent and compares very well to returns generated from other funds. The portfolio comprises very strong stocks like ICICI Bank, Yes Bank, HDFC Bank, Larsen and Toubro and Axis Bank. The portfolio is heavily skewed in favour of the banking sector. Should interest rates be cut and banking stocks rally expect the net asset value of the fund to be further propelled.
It's important to remember while investing that all of the funds mentioned above are high risk ones and any fall in the markets is likely to lead to a drop in the net asset value. Therefore, investing through the SIP route maybe the most ideal way to go about investing.