3 Best Mutual Fund SIPs: High 3 Years Return, 5 Star Rated By Crisil

Mutual Fund is an investment to a tool by which one can invest in equities or company stocks, indirectly.

What is a mutual fund SIP?

If an investor is investing in only a company stock, the whole money will be exposed to that particular fund's risks and opportunities. Mutual funds, on the other hand, will help to diversify an investor's money in multiple large caps, small caps, and mid-cap stocks. Hence that will mitigate the risk factors by diversifying the portfolio. SIPs on the other hand are suitable for investors who want to invest a small amount of money, every month. One can start SIPs even with Rs. 500 per month.

To select the best mutual fund SIP, an investor should look out for expense ratio, at least 3 years returns, assets under management (AUM), and certainly ratings by research firms. Crisil is one of the most renowned research firms that has given ratings to the mutual fund SIPs, to make it easier for investors to choose among options. Here are the 3 best mutual fund SIPs enlisted below, that was rated 5 stars by Crisil.

1. PGIM India Midcap Opportunities Fund

It is a mid-cap fund that means it will invest in companies with medium capital - of above Rs. 5,000 crore, but less than Rs. 20,000 crore. These funds have more risk factors than large-cap funds, but give better returns than them, in a certain period. PGIM India Midcap Opportunities Fund's expense ratio is 0.32%' has a fund size (AUM) of Rs. 3584.78 Crore, with 2.35% of Investment allocation in the Category. This fund has been rated with 5 stars by Crisil, considering its risks, returns, etc. NAV, of this fund, stood at Rs. 48.3 0.6%, as on December 10, 2021. In the last 3 years this fund has given more than 111%, in the last 2 years 83.46%, and in the last 1 year 28.68%. Investors can consider this fund for 2022 to invest in with high returns and top rating by a reputed research firm.

2. DSP Natural Resources and New Energy Fund

DSP Natural Resources and New Energy Fund is a 5 star rated mutual fund SIP by Crisil that has given 64.35% returns in the last 3 years, 56.75% returns in the last 2 years, and 16.08% returns in the last 1 year. The AUM for the fund is Rs. 740.37 crores (as of November 30, 2021). Till December 10, 2021, the fund's NAV stood at Rs. 57.274. Net asset value is commonly referred to as NAV in the stock markets. The top 5 stocks held by this mutual fund are Blackrock Global Funds - Sustainable Energy Fund with 12.6% holding, Blackrock Global Funds - World Energy Fund with 11.13% holding, Reliance Industries Ltd. with 9.57% holding, TATA Steel Ltd. with 8.29% holding, and Jindal Steel and Power Ltd. with 7.58% holding.

3. Quant Active Fund

Quant Active Fund is a multi-cap fund, with an AUM of Rs. 1459.13 crore. NAV of this fund is Rs. 445.333 as of December 10, 2021. Multi-Cap Fund has a 97.16% investment in Indian stocks, among which 43.78% is allocated in large-cap stocks, 11.03% is in mid-cap stocks, 32% in small-cap stocks. This portfolio too helps to diversify the mutual fund SIP investment. This fund too is a 5 star rated fund by Crisil, which makes it a preferred SIP investment among the multi-cap funds. In the last 3 years, this fund has given 103.99% returns, in the last 2 years a return of 81.53%, and in the last year, this fund has given 29.15% returns.

Why is AUM important for a mutual and SIP?

AUM is important to analyze because that determines the security quotient of the fund to some extent. In case the equity market starts to shrink significantly, and the investors want to release their money from the fund, it might be difficult for funds with low AUM. However, a mutual fund with a higher AUM can release the investors' money more comfortably. That is certainly important not just for mutual fund SIP investors but for all stock market players. Newcomers in the field should be more careful about these factors. They are more skeptical about the risk factor of the funds and get more influenced by the boon and bane of the stock markets. So, considering AUM will be helpful for them.