2 SIPs To Consider For August, Rated 5-star By CRISIL And Value Research

Systematic Investment Plans have been the flavour of the season. These instruments are increasingly becoming popular among young investors and is the ideal way to create a good solid corpus. Here are a few SIPs that are worth considering for long-term investors, who want to plan for the month of August. We have identified them from the ratings of CRISIL and Value Research. Both have a high credibility and long-standing track record. Ratings of mutual funds by CRISIL began in June 2000 and since then it has gained high acceptance among investors.

Invesco India Midcap Fund

This fund is rated as 5-star by CRISIL. As the name suggests it is heavily invested in midcap stocks and hence a fall in the markets could make it a risky proposition.

Returns from Invesco India Midcap fund

1-year returns	3-year returns	5-year returns
66.67%	18.77% (annualized basis)	17.13% (annualized basis)

Other details of Invesco India Midcap fund

Assets under management	Rs 1,706 crores
Launch date	April 2007
NAV under growth plan	Rs 81.70
SIP amount every month	Rs 500

 

 

Invesco India Midcap Fund: Good for risk averse investors

Invesco India Midcap Fund is good for those looking for SIPs, and willing to take substantial risks. Investors can start an SIP in Invesco India Midcap Fund with a small sum of Rs 1000. Invesco India Midcap fund has holdings in stocks like Gland Pharma, Endurance Technologies, Vinati Organics, Bharat Electronics, Gujarat Gas etc.

One can opt for the dividend as well as the growth plan under the scheme. The fund is well invested with 97.3% now in stocks, while the remaining is being held in cash. This fund is suitable for those willing to take a long-term view of things.

Our own belief is that the stock markets are overheated at the moment and the next 3-year returns are unlikely to be like the past, given that the markets have been scaling historic peaks. 

Canara Robecco Bluechip Fund

This fund has been rated 5-star by several leading analysts and research agencies. It has been a consistent performer all these years. Let's take a look at the performance of this fund.

Returns from Canara Robecco Bluechip Fund

1-year returns	3-year returns	5-year returns
44%	16.28% (annualized basis)	15.76% (annualized basis)

Other details of Canara Robecco Bluechip Fund

Assets under management	Rs 3,308 crores
Launch date	Aug 2010
NAV under growth plan	Rs 38.52
SIP amount every month	Rs 1,000

 

Canara Robecco Bluechip Fund: Do not invest a big amount in SIP

We suggest that you start with a small sum by way of SIP. At 53,000 points on the Sensex, the chances of the markets falling are brighter, than rallying significantly. We advocate a small sum now and when the markets fall, you can increase the amount of SIP. That would be a great strategy to adopt. Canara Robecco Bluechip Fund has investments in stocks like HDFC Bank, ICICI Bank, Infosys, Reliance Industries etc. Investors who have a long-term view should begin with small amounts.

This fund has investments in largecap stocks and almost 93.9% of the funds are invested. The fund is an open ended fund with a net asset value of Rs 38.51 under the growth plan and assets under management of a pretty decent Rs 3,308 crores.

Disclaimer

Please note, investing in mutual funds is risky and investors should exercise caution. Please do adequate research. Neither Greynium Information Technologies, nor the author would be responsible for losses incurred based on the above article.