Benchmark indices have fallen almost 8% from peak levels, leaving investors who are investing by way of SIPs, a better option to park money at lower net asset values. Here are a few SIPs, you could consider investing for the month of December. When we say best SIPs, it is largely considering the rating of renowned agencies in the business as well as the past returns and the portfolio.
Kotak Debt Hybrid Fund
Kotak Debt Hybrid Fund has been rated No 1 by CRISIL and Value Research. Kotak Hybrid Fund is a conservative hybrid fund. Conservative hybrid funds invest 25% of the money in equities and the rest in bonds. If your tolerance to volatility in the markets is limited, then conservative hybrid funds are the way to go.
The fund has given a returns of around 15% in the last 1-year and about 13% on an annualized basis in the last 3-years. About 23.6% of the funds are in equities and the rest are in debt and cash holdings. Investors can start a SIP with a sum of Rs 1,000 every month. Being a conservative fund, do not expect whopping returns, though one can expect protection of capital to a certain extent.
IDBI India Top 100 Equity Fund
IDBI India Top 100 Equity Fund has been rated as No 1 by Crisil. This is a Large Cap Fund and therefore, the risks are less when compared to investing in small or mid cap funds. However, since almost the entire exposure is to equities the risks are far higher in these kind of funds. We therefore advocate placing money only through SIPs.
The Fund has given very decent returns of 36.80% in the last 1-year, while the 5-year returns are 14.86% on an annualized basis. The fund has very small assets under management of Rs 500 plus crores.
The majority of the holdings are in blue chip names like Reliance Industries, HDFC Bank, Infosys and others.
SBI Bluechip Fund
SBI Bluechip Fund has been rated No 2 by Crisil and has a 4-star rating from Morningstar. The fund is a largecap fund and invests most of its money in large cap stocks. SBI Bluechip has holdings in stocks like HDFC Bank, ICICI Bank etc. The fund has given an annualized returns of nearly 14% in the last 3-years. Investors with a long-term perspective can look to invest in this fund. A monthly SIP of Rs 10,000 each month would have grown to Rs 5.16 lakhs in the last 3-years of investment.
The current net asset value of the fund under the growth plans is 59.880, while under the dividend distribution it is Rs 34. The minimum amount that you can start an SIP is Rs 500, which is rather affordable. It is only prudent when the markets are high to look at SIP investments and not lumpsum investment.
Investing in equity mutual funds is risky and investors are advised caution. Invest only if you have an appetite to take risk. Please be informed neither Greynium Information Technologies Pvt Ltd nor the author are liable for any losses caused as a result of decisions based on the article.