Markets have fallen around 7 to 8 per cent since the start of July. It maybe a good time to invest in multi cap equity mutual funds through the SIP route. Here are a few multi cap funds that look good to invest through the SIP route. Multi Cap funds invest in both large cap and mid cap companies to churn better returns.
1. Kotak Standard Multi Cap Fund
This Fund has a 5-star rating from Value Research Online. Kotak Standard Multi Cap Fund has generated a decent return of 9.49 per cent over a three-year period and about 13.32 per cent over a slightly longer term of 5 years.
The fund has holdings in stocks of HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank, L&T and Infosys apart from others. A minimum SIP can also be done with a small amount of Rs 500 every month. The initial amount of investment is Rs 5,000.
Currently the NAV under the growth plan is Rs 33.49, while under the dividend plan is Rs 22.54. Buy the fund with a long term perspective in mind.
2. Axis Focused 25 Fund
This is another good fund that has been well rated by the reputed Value Research Online. The fund has a corpus size of around Rs 8,000 crores.
The three year returns from the fund is 11.55 per cent, while the 5 year returns is 13.66 per cent. The growth plan has a net asset value of Rs 27.18, which would be the current rate to buy the scheme.
Like most funds the top holdings remain in HDFC Bank, while other holdings of the fund include the likes of Kotak Mahindra Bank, Tata Consultancy Services, Bajaj Finance and Bajaj Finserv.
The minimum SIP investment for this Multi Cap Fund is Rs 1,000.
3. SBI Focused Equity Fund
SBI Focused Equity Fund is another good multicap fund, which has generated better returns over the longer term, while giving tepid returns in the more shorter term. The fund has generated a return of 10.77 per cent over a 3-year tenure, while the 5-year returns has been 12.65 per cent.
The SBI Focused Equity Fund has holdings in stocks like HDFC Bank, State Bank of India among others. The growth scheme has an NAV of around Rs 137.
One can invest in the fund through an SIP of Rs 1,000 every month. In the last one year, most mutual fund schemes have under performed fixed deposits. Investors would need to be extremely patient to make money.
4. Aditya Birla Sunlife Equity Fund
Aditya Birla Sunlife Equity Fund is a multi Cap fund, which has given ordinary returns in the short term. However, the returns in the long term have been good. The 3-year returns from the fund has been 7.48 per cent, while the 5 year returns has been 10.67 per cent.
One can invest in Aditya Birla Sunlife Equity Fund through an SIP, with a minimum amount of Rs 1,000 every month. The current NAV under the growth option is Rs 677.39.
5. Parag Parekh Long Term Equity Fund
The fund has assets under management of Rs 2,000 crores. The expense ratio of the fund is also not very high compared to peers at just 1.36 per cent.
The 3-year returns from the fund has been 11.38 per cent, while the 5-year returns has been 11.87 per cent. The scheme has holdings in some internationally renowned companies like Alphabet and Amazon.
But the fund if you are looking for a long term perspective.
This article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article. Please seek professional help before buying into the SIPs mentioned above. The author does not have any holdings in the mutual fund schemes mentioned above.