Despite the markets being in turmoil, flows into equity mutual funds continues unabated. Flows into Systematic Investment Plans (SIPs) have not dwindled and continue to see a very steady stream. Here are a few SIP mutual fund schemes that could be great investment bets from a 2-3 year perspective.
1.Mirae Asset Emerging Bluechip Fund
This fund has been rated as 5-star by Crisil. Returns have been much better when compared to peers, which is one of the reasons for a good rating of the fund.
The short term returns from the fund has not been too great in line with the markets. The one year returns has been -8.45 per cent, while the 5-year annualized returns has been 12.5 per cent. One can invest in this fund with a small amount of Rs 1,000 as an SIP.
The expense ratio of the fund is very less at 0.77 per cent and probably one of the lowest in its category. The portfolio of the fund is very strong with holdings in HDFC Bank, Reliance Industries, ICICI Bank and Axis Bank. The current net asset value of the fund is Rs 53.31.
A good bet from a holding perspective of 1-2 years.
2. LIC MF Large and Midcap Fund – Growth
This is another fund that has a 5-star rating from Crisil. As the name suggests, LIC MF Large and Midcap Fund invests in both large cap and midcap stocks. One can invest in the stock, through a SIP of Rs 1,000 every month, after having initially invested a sum of Rs 5,000.
The portfolio of LIC MF Large and Midcap Fund is pretty strong with HDFC Bank, Infosys, Avenue Supermarkets and ICICI Bank among the top 4 holdings of the fund.
The current net asset value of LIC MF Large and Midcap Fund under the growth plan is Rs 13.55. Investors looking at returns in the more longer term of 3-5 years are likely to be rewarded well.
The fund has currently invested around 87 per cent in equities, while the rest is cash holdings.
3. Canara Robeco Emerging Equities Fund – Growth
This is another fund that could generate good returns over a longer term tenure of 3-5 years. The fund like the other two, does not have a 5-star rating, but, does have a strong 4-star rating from Crisil. Value Research, however, has accorded the fund a 5-star rating.
One can invest in the fund through a monthly SIP of as little as Rs 1,000. The current net asset value of the fund under the growth plan is Rs 86.82. The 5-year returns from Canara Robeco Emerging Equities has been pretty decent at 8.75 on an annualized basis.
The holdings of the fund is pretty strong including the likes of HDFC Bank, Reliance Industries, ICICI Bank, IPCA Labs and Atul. A holding period of 5 years, should see investors make a decent returns.
Investors should certainly not take any investment decision based only on information discussed in this article. Any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.
About the author
Sunil Fernandes has spent 25 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.