Best SIPs To Buy As Mutual Funds NAVs Fall

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The Sensex and the Nifty have retraced almost 12 per cent from peak levels seen in March this year. This has resulted in net asset value of mutual funds falling, many of which have hardly given any returns in the last one year.

Best SIPs To Buy As Mutual Funds NAVs Fall
As net asset values fall, it may be time to look at Systematic Investment Plans (SIPs) all over again. Here are a few of them that have turned attractive once again.

HDFC Equity Fund

This is among the largest equity funds in India with a staggering Rs 18,500 crores as assets under management. The fund invests a bulk of its money in the large cap and mid cap space. The returns from the fund have not been great in the last one year and were placed at a mere 3 per cent.

However, in the long term the fund has generated good returns with the 10 year return being as high as 18 per cent. The fund has a good portfolio comprising stocks like State Bank of India, ICICI Bank, Infosys and Larsen and Toubro.

These are all blue chip stocks in the portfolio of HDFC Equity Fund and any rise in the markets is likely to see a good movement in the net asset value. The minimum amount needed to invest in the fund is Rs 500.

Type of Fund Minimum SIP Returns Since Launch 3 year returns
 Equity Mid and Large Cap Rs 500 20.21% 21.50%

Birla Sun Life Front Line Equity Fund

Birla Sun Life Equity Fund like HDFC Equity Fund invests bulk of the amount in the mid cap and large universe. The funds under management is to the tune of Rs 9850 crores. The fund has generated decent returns over the last many years. However, in the last one year the returns have been close to 10 per cent, which is pretty decent when compared to peers.

The portfolio comprises quality stocks HDFC Bank, Infosys, ICICI Bank and Reliance Industries. One can opt for the regular and the direct plan.

Type of Fund Minimum SIP Returns Since Launch 3 year returns
 Equity Mid and Large CapRs 100023.21%22.85%

SBI Magnum Multi-Cap Fund

SBI Magnum Multi-cap fund like peers has more or less the same portfolio of top stocks. Exposure is restricted to quality names in the mid cap and large cap space. But, bulk of the portfolio comprises large cap stocks like Infosys, Reliance Industries, State Bank of India and TCS.

Interestingly, there is no exit load on the fund.

Type of Fund Minimum SIP Returns Since Launch 3 year returns
 Equity Mid and Large CapRs 50012.50%25.00%

Some of the best SIPS in a falling market

The above are good quality mutual fund schemes that have the capacity to generate good returns in the long term. In some cases, the returns may have been more tepid in the last one year, but, in the last 10 years or so, most of these funds have performed well.

With the markets have fallen in the last few trading sessions, it also gives an opportunity to lock money into some of these even on a lumpsum basis and not purely on SIPs.

Story first published: Monday, August 31, 2015, 9:16 [IST]
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