The last few months have been challenging for mutual fund investors, given the volatility in the stock markets. However, those holding onto long term have made reasonably good returns from mutual funds. Here are 3 Systematic Investment Plans (SIPs) worth considering for long term investors. We have taken into consideration a 4-star rating and above by Value Research for these funds.
ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund has been rated as 4-star by Value Research. The fund has generated a returns of 7.77 per cent over a 5-year period and about 11.62 per cent returns over a 7-year period.
Among the top holdings of the fund include Infosys Technologies, HDFC Bank, Reliance Industries, ICICI Bank and Bharti Airtel. This is one of the large sized funds and has assets under management of nearly 23,000 crores.
One can invest through the SIP route where the minimum investment required is Rs 100 only. This is probably the least from mutual funds. The growth plan currently has an NAV of Rs 42.44. ICICI Prudential Bluechip Fund is good for those looking to hold for the long term.
UTI Nifty Index Fund
This fund invests in large cap stocks and is largely restricted to the Nifty index stocks. The assets under management is around the Rs 2,000 crores. Given that the fund invests only in largecap stocks the risk is moderately high in the fund.
The NAV under the growth plan of the fund is Rs 78.21. UTI Nifty Index Fund has a very strong portfolio with exposure to stocks like Reliance Industries, HDFC Bank, Infosys, HDFC, TCS and ICICI Bank among others.
The minimum investment required to invest in the fund is Rs 1,000 each month by way of Systematic Investment Plan. The returns from the fund have more or less been in line with returns generated from the index.
HDFC Index Fund Nifty 50 Plan
This fund again has a 4-star rating from Value Research. The growth plan of the fund currently has an NAV of Rs 108.51.
HDFC Index Fund invests its corpus in the Nifty index stocks. The fund was started way back in 2002 and has since delivered returns of nearly 13.62 per cent on an annualized basis. Invest in largecaps is not as risky as investment in small cap and midcap index of stocks and hence the risk is moderately high and not very high in this fund.
An SIP can be started in the fund through a minimum investment of Rs 1,000 every month. It's important to remember that markets are exceedingly volatile, especially in 2020 and hence investors should look to Systematic Investment Plans for averaging.
About the author
Sunil Fernandes has spent 26 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, commodities, debt, mutual funds and tax planning. Sunil is currently Managing Editor for Goodreturns.in