3 SIPs You Must Invest Rated No 1 By Crisil & Should Be Part Of Your Portfolio

It maybe the right time to revisit your mutual fund portfolio, if there are some laggards. Here are a list of 3 SIPs that you could consider based on the No 1 rating by Crisil.

Crisil mechanism for ranking mutual funds

CRISIL Mutual Fund Ranking (CMFR) was available from June 2000 and since then it has gained high acceptance among investors, intermediaries and asset management companies.

CMFR 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 (NAV), CMFR uses a combination of NAV and portfolio-based attributes for evaluation. This provides a single point analysis of mutual funds, taking into consideration key parameters such as risk-adjusted returns, asset concentration, liquidity and asset quality. The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating 'very good performance'.

PGIM India Flexi Cap Fund

In the flexi cap category, this fund has been ranked as No 1 by Crisil. One can invest in the fund with an SIP amount of Rs 1000. The fund has holdings in names like Infosys, HDFC Bank, Axis Bank, Mphasis etc. The fund has generated a return of 19.21% on an annualized basis over the last 3-years and the 5-year returns is 13.44% on an annualized basis. Along with CRISIL, even Value Research has rated the fund with a 5-star rating. The assets under management are to the tune of slightly more than Rs 4100 crores. The performance of this fund over the slightly longer term is better when compared to other peers. 96% of the funds are invested in equities and the remaining 4% is invested in debt instruments.

ICICI Prudential Equity & Debt Fund

If one is looking at a hybrid fund, where there is a balance of debt and equity, than investing in ICICI Prudential Equity & Debt Fund is not a bad idea. The fund is rated No 1 by Crisil. The fund has invested approximately 68% of the funds in equities and the remaining is in high quality debt instruments and cash holdings. The fund has generated returns of 17.22% over the last 3-year on an annualized basis. The 5-year returns from the fund is 13.32% on an annualized basis. Interestingly, the fund has also been rated 5-star by Value Research. The fund size is rather large with assets under management of more than Rs 19,000 crores. The expense ratio of the fund is around 1.82%. The top equity holdings of the company include names like NTPC, ICICI Bank, Bharti Airtel and ONGC.

IDBI India Top 100 Equity Fund

After looking at a flexi cap fund and a hybrid fund, it maybe a good idea to look at a largecap fund. The IDBI India Top 100 Equity Fund has also been rated no 1 by Crisil. As the name suggests the fund invests money only in largecap stocks. The fund has generated a returns of 7.09% over the last 1-year, while the three year returns has been 14.45% on an annualized basis every year. Being a large cap fund, the volatility is much lower, when compared to small and midcap funds. An SIP in the fund can be started with a small sum of Rs 500 each month. The fund was launched way back in 2012 and has had a pretty good track record.

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.