3 Mutual Fund SIPs Which Are Favourite Of Rating Agencies

Many firms and rating agencies rate mutual funds based on various paramaters, including returns, portfolio, liquidity etc. Among these popular ones are Crisil, Morningstar and Value Research. Here are 3 mutual fund SIPs that are rated No 1 or 5-star by these agencies.

Canara Robeco Bluechip Equity Fund

This fund has been rated 5-star by Morning Star and Value Research and also has a No 1 rating from Crisil.

The fund has a solid track record of returns and a robust portfolio. For an SIP, the fund house has stipulated a small sum of Rs 1,000, which is very much affordable.

If investors had to start an SIP of Rs 10,000 each month, 36-months ago, the sum would have grown into Rs 5.34 lakh, against Rs 3.6 lakh invested.

Canara Robeco Bluechip Equity Fund had holdings in 48 companies under its portfolio, which includes names like ICICI Bank, Infosys, HDFC Bank, Reliance Industries etc.

While we do not like lumpsum investments in mutual funds, we definitely recommend investing by way of the SIP route. It tends to hedge risks as in case of a downward slide as investors can lap-up the units at lower prices.

Mirae Asset Large Cap Fund - Good fund for SIPs

This fund has been rated 5-star by CRISIL and Value Research. Again, like the above peer it has a good long-standing track record. This fund is essentially a large cap fund, which provides investors long term capital appreciation.

The 1-year returns from the fund has been 33%, while the 3-year returns has been 17.65% on annualized basis, while the 5-year returns has been 17.53%. The assets under management are a solid Rs 30,000 crores. The fund is almost fully invested in equities and barely has any cash or equivalent holdings, which is not beneficial when the markets are falling.

The fund has holdings in stocks of ICICI Bank, Infosys, HDFC Bank, Reliance Industries etc. All of the stocks are index heavyweights and if the indices jump, the net asset value of the fund would jump.

Axis Bluechip Fund - Solid returns from SIPs

Axis Bluechip Fund has been rated 5-star by Value Research and also 5-star by Morningstar. The fund has generated returns of 28.45% in 1-year, while the 5-year returns has been 17.19% on an annualized basis.
The assets under management of the fund is Rs 33,000 crores. The fund has holdings in stocks like Bajaj Finance, ICICI Bank, HDFC Bank, Infosys and Avenue Supermarts.

An SIP investment of Rs 10,000 each month for the last 36-month would have translated into returns of Rs 5.2 lakhs, against an investment of Rs 3.6 lakhs. We believe that the stock markets are overvalued at these levels and hence even SIPs have to be considered only in small amounts. If there is a sudden collapse in the markets, then one can invest larger sums, or else one should stick to very small amounts.

Disclaimer

Investing in mutual funds is risky, especially equity mutual funds. Investors must therefore exercise due caution. Greynium Information Technologies, the author, are not liable for any losses caused as a result of decisions based on the article.