As the year 2021 draws to closer, we see that equity mutual funds have generated solid returns for 1, 3 and 5 years. Going ahead one cannot expect solid returns as in the past as markets have run-up sharply over the last 1-year. Investors should now moderate their expectations from equity mutual funds. Here are 3 highly rated mutual funds that are rated from Crisil, Value Research and Morningstar that could be good investments in 2022.
PGIM India Flexi Cap Fund
|Current nav growth||Rs 26.51|
|Minimum SIP amount||Rs 1,000|
|5-years annualized returns||21.00%|
This fund has been rated No 1 by CRISIL and has a 5-star rating from Value Research. One can start an SIP with a sum of Rs 1,000 every month. If investors start an SIP now, they have to buy the same at a unit price of Rs 26.51, under the growth plan as the units are priced at these levels.
The fund has invested almost all of its money in equities and presently almost 97% stands invested with the balance in cash and cash equivalents. The holdings of the fund includes names like Infosys, ICICI Bank, Larsen and Toubro. Investors who wish to invest for 3 years and beyond could reap benefits. Avoid investing lumpsums, given the volatile nature of the Indian markets.
Canara Robeco Emerging Equities Fund
This fund has been rated 5-star by Value Research and is good start an SIP in 2022. This is the highest rating accorded by the agency. Canara Robeco Emerging Equities Fund has been a good consistent performer over the last few years. The returns over the last 1-year has been 40%, while the 3-year returns has been 22% and the 5-year returns has been 20%.
We have been advocating right through out to stay invested in SIPs only and not to park large sums. We believe that the omicron story could add to more volatility for the markets and hence one must be cautious. An SIP in Canara Robeco will not cost you much. In fact, it is only Rs 1,000 per month. Stay invested for a period of 5-years at the very least do get good benefits.
Mirae Asset Tax Saver Fund
|Current nav growth||Rs 30.98|
|Minimum SIP amount||Rs 500|
|5-years annualized returns||21.88%|
This fund is an Equity Linked Savings Scheme, so you get tax benefits under Sec80c of the income tax act. An ideal fund to start investing and save tax in assessment year 2021-22. Mirae Asset Tax Saver Fund has been rated No 1 by Value Research and Morningstar as well. Considerings its past track record, portfolio, liquidity conditions the fund is a good investment bet for 2022 and beyond. The fund has holdings in stocks like HDFC Bank, ICICI Bank, Infosys and Axis Bank.
A good bet for those looking to save tax and also generate returns. It is important to remember that there would be a lock-in of three years in this fund as they are ELSS funds.
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.