Exactly a year ago, several distributors of mutual funds were strongly recommending the small cap and mid cap funds. The NAVs had already run-up significantly and some small cap mutual fund schemes had stopped accepting money from investors. Most small and midcap funds have generated negative returns in the last 1 year, while the large caps have generated flattish returns in 2018.
Going ahead, investors would be prudent to stick to the high quality large cap mutual funds. While, it would be dangerous to predict which would be the best performing mutual fund schemes in 2019, we have stuck to some large cap funds, with a good track record. The one reason for the same is that markets are likely to see immense volatility this year, owing to the general elections. Here are a few good equity mutual funds to invest in 2019:
SBI Equity manages more than Rs 20,000 crores and is a large cap fund. Like most of its peers, the fund has generated negative returns in the last one year and more decent returns in 3 and 5 years.
In fact, the fund has given negative returns of 4.09 per cent in the last one year and 15.88 per cent returns in the last 5 years.
The fund has extremely sound holdings in the likes of HDFC, HDFC Bank, L&T, which form almost 9 per cent of the holdings. Most of the above mentioned stocks are less volatile and hence have the capacity to weather the storm in case the markets collapse.
One can invest in the fund through the SIP route, with an initial investment of Rs 5000 and then a minimum of Rs 500 subsequently. The net asset value under the growth scheme is currently Rs 37.23, while under the dividend plan is Rs 21.18.
Reliance Largecap Fund
This again is a fund that invests the money in largecap funds. Like SBI Equity the fund has generated lower returns in the last 1 year, while the 3 and 5 year returns have been superlative.
The 1 year return has been flat, while the 5 year returns have been close to 17 per cent. The top three holdings of Reliance Largecap Fund include SBI, Larsen and Axis Bank.
The net asset value under the growth plan is Rs 33.2671, while the dividend plan is Rs 15.32. One can invest through the SIP route as well, where the initial amount is Rs 5,000 and later Rs 500.
This is one of the better equity mutual fund schemes to invest in 2019.
ICICI Prudential Bluechip Fund
One can also consider ICICI Prudential Bluechip Fund which has a corpus size of nearly Rs 20,000 crores. The fund has generated a negative return of 0.80 per cent in the last one year, while the five year returns have been 14.83 per cent.
One can invest in the fund through a minimum SIP of Rs 100 each month. For those looking at a long term perspective this fund can generate decent returns.
The current NAV of the plan under the dividend scheme is Rs 22.44. There are several other large cap equity mutual funds, which should not be ignored including the likes of HDFC Equity and Birla Sunlife Focused Equity Fund.
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