3 SIP Mutual Funds To Consider Based On 5-Star Rating From Morningstar
It's again the beginning of the month and investors are looking to invest in SIPs or switch to new Systematic Investment Plans. We are recommending a few SIP plans based on the ratings from Morningstar. For sometime now we have been advocating only SIPs as the markets have run-up sharply over the last 1-year. Here are 3 SIPs to consider for long-term investors.
Axis Flexi Cap Fund
This fund has been accorded a 5-star rating from Morningstar. Let's take a look at how the fund has performed over the last few years. This is a Flexi Cap fund, which means the fund manager has the choice to move money from largecap funds to mid and small cap funds and the other way round as well.
Returns from Axis Flexi Cap Fund
1- year | 3-year, annualized | 5-year, annualized |
49.48% | 17.22% | NA |
Other details of Axis Flexi Cap Fund
NAV | Rs 18.61, growth |
Assets under management | Rs 8,566 crores |
Investment strategy | Equity |
Risk | Very high |
Axis Flexi Cap Fund SIPs: For those willing to take risk
Investors who are long-term investors and are willing to take a risk can go for these SIPs. An SIP started 3-years ago in Axis Flexi Cap Fund for Rs 10,000 every month is worth Rs 5.25 lakhs today. That is a remarkable set of returns from the fund. In fact, most of the equity funds from the Axis Mutual Fund stable have done well over the years.
It's important to note that markets have gone from 33,000 points on the Sensex a year ago to 53,000 points. It is therefore not worth considering lumpsum at this stage and investors should stick to Systematic Investment Plans. Apart from Axis Flexi Cap Fund we are also recommending two other funds below for long term investors.
Quant Midcap Fund
Quant Midcap Fund is a high risk investment, given that the fund invests invests in midcaps, which are volatile. However, if you go through the SIP route this is taken care off, as the law of averages applies.
Returns from Quant Midcap Fund
1- year | 3-year, annualized | 5-year, annualized |
88.17% | 23.52% | 19.03% |
Other details of Quant Midcap Fund
NAV | Rs 109.56, growth |
Assets under management | Rs 110 crores |
Investment strategy | Equity |
Risk | Very very high |
Quant Midcap Fund: A decent performer
Quant Midcap Fund has been rated as 5-star by Morningstar. Investors can start a SIP in the fund with a sum of Rs 1,000 every month. The fund size is not too large and this gives the fund manager some flexibility when investing.
It's advisable to start an SIP with a small sum at the moment, given that the markets are high and when the markets fall, you can increase the size of the SIP. This would be a good strategy for investors to adopt for Systematic Investment Plans, given that the Sensex is at 53,000 points. Quant Midcap Fund is an investment for those willing to take serious risk. If you do not have an appetite for the same, avoid this mutual fund scheme. We at goodreturns are not recommending any lumpsum investment at the moment, as the markets are overpriced.
SBI Small Cap Fund
This is another fund that is high risk, but, is rated 5-star by Morningstar. This fund has been a consistent performer and has given good returns over the last 1-year. Here are
Returns from SBI Small Cap Fund
1- year | 3-year, annualized | 5-year, annualized |
88.28% | 21.86% | 21.03% |
Other details of SBI Small Cap
NAV | Rs 95.30, growth |
Assets under management | Rs 9,010 crores |
Investment strategy | Equity |
Risk | Very very high |
SBI small cap fund: Invest small amounts
The portfolio of SBI Small Cap Fund includes names like Elgi Equipments, V-Guard Industries, Carborundum Universal and Sheela Foam. The fund has given superb returns in the last 1-year. We suggest to invest small amounts at the current juncture and gradually increase the same, should the markets fall. If you redeem your units before a period of 1-year there is a charge of 1% that would be levied as load fees.
An SIP can begin with a sum of Rs 500 and investors need to hand-over 12 cheques for the purpose of investments.
Disclaimer
Please note, investing in mutual funds is risky and investors should exercise caution. Please do adequate research. Neither Greynium Information Technologies, nor the author would be responsible for losses incurred based on the above article.