The new financial year begins and with it challenges of investing in time of Covid-19 infections. Today, investors can buy mutual fund schemes at least 30 per cent cheaper than they bought at the start of the calendar year 2020. It's always a challenge investing in an environment like this, where the coronavirus infections are a big uncertainty. However, as and when infections across the globe abate and fresh cases fall, you are unlikely to get mutual fund schemes at the present net asset value. Here are 4 equity mutual fund schemes to buy into, based on the ratings from leading advisers and institution.
1. Axis Bluechip Fund - Direct Plan - Growth
This fund has been rated 5-star by Crisil. It has outperformed some of its peers and is hence very well rated. The one year returns from the fund is -3.15 per cent, while the two year returns is 3.15 per cent (annualized) and the 5 year returns are 6.17 per cent (annualized). Considering that the Sensex has slumped almost 33 per cent from historic highs, the returns are not bad. However, what we want to emphasize here is that the returns have been dismal, largely because of the slump in the index, because of the Covid-19 infections.
The portfolio of the fund is solid and comprises names like Bajaj Finance, ICICI Bank, Kotak Mahindra Bank, Avenue Supermarket and HDFC Bank.
2. BNP Paribas Large Cap Fund - Direct Plan - Growth
This is another fund that has been rated well by Crisil and has got a 5-star rating. Value Research has accorded the fund a 4-star rating.
The 1, 2 and 3 year returns have not been great, thanks to the fall slump in the markets. However, as mentioned earlier, given that investors are getting to buy the scheme at an NAV that is significantly lower than at the start of the year, it makes sense to invest for the long term.
The 3-year annualized returns from the fund has been -0.30 per cent. The portfolio of the fund comprises names like HDFC Bank, ICICI Bank, Reliance Industries, Infosys and Bharti Airtel.
Investors are once again warned that while the risk to reward ratio might be favorable now to invest in mutual funds, there is always an element of risk.
3. Canara Robeco Bluechip Equity Fund - Regular Plan
This plan has a 5-star rating from both Crisil and Value Research Online. The annualized returns have been 3 per cent over the last three years. The fund has performed much better when compared to several other peers in its category. Canara Robeco Bluechip Equity Fund - Regular Plan has holdings in the stocks of HDFC Bank, ICICI Bank, Reliance Industries and Infosys. One can invest in the fund through way of Systematic Investment Plans as well.
The current net asset value of the plan is Rs 21.49. This is a largecap fund and hence the risks are low, when compared to small or midcap funds.
4. Mirae Asset Large Cap Fund - Regular - Growth
This fund has sizeable assets under management of more than Rs 16,000 crores. It is a largecap stock with quality stocks like HDFC Bank, ICICI Bank, Infosys and Reliance Industries as a part of its portfolio.
The current net asset value of the fund is Rs 37.58. One can invest in the fund through the SIP route as well, given the volatility in the markets.
The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.