3 SIPs Rated No 1 By Crisil With Solid Returns In Last Few Years

At a time when the markets are falling sharply, it is a good idea to look at mutual funds that offer good value to investors. Here are a few mutual fund schemes that are rated No 1 by Crisil and which are good to start an SIP. Crisil Mutual Fund Ratings covers various categories across equity, debt and hybrid asset classes. Unlike most other ranking models, which are based purely on returns or net asset value, CMFR uses a combination of NAV and portfolio-based attributes for evaluation

IDBI India Top 100 Equity Fund

This mutual fund scheme is ranked No 1 by Crisil. It invests in the top 100 companies and has generated decent returns over the last few years. The 1-year returns from the fund has been 13%, while the 5-year returns has been 10.24% on an annualized basis. The fund has holdings in stocks like Reliance Industries, HDFC Bank, ICICI Bank and Infosys. The assets under management are not like some of its peers and are about Rs 560 crores. An SIP started with Rs 10,000, 3-years ago would have today fetched about Rs 4.64 lakhs. This means Rs 3.6 lakhs of amounts would have given Rs 4.64 lakhs. The one good thing right now is that the Sensex and the Nifty have dropped almost 14% from peak levels, which makes SIPs attractive at these levels. It is always hard to predict outcomes in the stock market, though one would need to have patience to generate returns. IDBI Top 100 also has a good rating from Value Research, which has rated the fund 4-Star.

UTI Mastershare Fund

UTI Mastershare Fund has been rated as No 1 By Crisil, just like the IDBI India Top 100 Equity Fund. This is one of the oldest mutual fund schemes in the country started way back in 1986. The assets under management are close to Rs 10,000 crores. Investors can look at starting an SIP with a small sum of Rs 100. The 3-year returns from the scheme is 14% on an annualized basis, while the 5-year returns are around that 10% mark. The fund has invested almost 96.8% of its holdings, while the remaining is held in cash and cash equivalents. The fund has holdings in stocks like ICICI Bank, HDFC Bank, Infosys and Reliance Industries. The fund is good for investors, who are willing to invest for the more long-term period of 5 to 7-years to generate returns. The net asset value under the scheme is Rs 179.49, which is the price investors will have to pay to buy the units.

PGIM India Midcap Opportunities Fund

The objective of the Scheme is to achieve longterm capital appreciation by predominantly investing in equity & equity related instruments of mid cap companies. Now, since this fund is investing in midcap companies the risks are far higher, unlike the largecap funds, as midcap companies tend to have volatile price swings. In any case, PGIM India Midcap Opportunities Fund is also rated No 1 by Crisil, just like the other two mentioned above. The 3-year returns from the fund has been simply fantastic at around 30% on an annualized basis. The 5-year returns from the fund has also been solid at about 16% on an annualized basis. The fund has holdings in Persistent Systems, Cummins India, ABB, the Fedeal Bank, HDFC Bank etc. As far as midcap funds are concerned is better to invest through the SIP route as returns from these funds tend to be volatile.

Disclaimer

Investing in mutual funds is risky. We have highlighted the ratings of Crisil and provided details thereof. Please consult a professional advisor as investing in mutual funds, especially equity mutual funds is subject to market risks. The author and Greynium Information Technologies Pvt Ltd, would not be responsible for losses incurred.