Markets are very much close to their peak levels and it is time to look at Systematic Investment Plans (SIPs) for the month of July. This is because when the markets are at record highs, you would hedge your risk, when investing in Systematic Investment Plans. Here are 5 of the best SIPs to buy for long term investors.
Canara Robeco Bluechip Equity Fund
This fund has generated solid 1-year returns of 53%, while in the slightly longer term of three years the returns are 19.55% on an annualized basis. Canara Robeco Bluechip Equity Fund has been well rated by rating agency CRISIL as 5-star. The portfolio of the fund is extremely sound at includes names like HDFC Bank, Infosys, ICICI Bank, Reliance Industries, Tata Consultancy Services and State Bank of India.
This fund is a largecap fund and the risk is therefore a little less compared to funds that are small cap or midcap. However, that does not mean there is no risk. Investors in largecap fund also face the risk, in case of a market collapse. This is why when the Sensex is at a peak of 53,000 points, we are recommending investors to go with good SIPs, which is the best bet in the current market to average your risk.
Axis Long Term Equity Fund
This fund has been a consistent performer over the years, and has often been rated in the 5-star category by Crisil, Value Research and Morning Star. It continues to be accorded a very high rating of 5-star by Morning Star.
You can start an investment with a small sum of Rs 500 by way of SIP. The fund is very large in terms of assets managed and currently has assets under management of nearly Rs 30,000 crores.
Almost 99.6% of the fund is invested in equities, which means the fund is very low on cash and cash equivalents. This may not neccessarily be the best option, if the markets fall, as the fund manager would not be on cash to invest. The fund has given a returns of 53% in a-year and the annualized yield of 16.15% over the last 5-years.
Mirae Asset Tax Saver Fund
Mirae Asset Tax Saver Fund as the name suggests is a tax saver fund that offers tax savings under Sec 80C of the Income Tax Act for investments upto Rs 1.5 lakhs.
Mirae Asset Tax Saver Fund has been rated 5-star by CRISIL and has generated returns of 68.15% in the last 1-year. The fund has assets under management to the tune of Rs 7,300 crores. The fund has mostly invested in largecaps with stocks like Infosys, HDFC Bank and ICICI Bank among the portfolio of the fund.
Investors can look to invest in the SIP of the fund with a small investment of as less as Rs 500 each month.
We wish to emphasize the fact that markets have run-up too sharply in the last few months and hence investing lumpsum amount can be dangerous. It is therefore, better to invest through the SIP route. Shouls the markets fall from these levels by 10% or so, investors can look to increasing their SIPs. At the moment the markets are very expensive.
UTI Flexi Cap Fund
UTI flexi Cap Fund is a fund that invests in stocks across different market capitalizations. This means the fund manager can move money from largecap stocks to small cap or midcap and vice versa. This can make the returns more dynamic and sync things in tune with the movement across companies.
UTI Flexi Cap Fund has a 5-star rating from CRISIL, which is the highest possible rating. This fund is good for those looking at long-term returns. UTI Flexi Cap Fund has generated a 1-year returns of 70%, in line in which the markets have moved over the last one year.
The 5-year annualized returns are more moderate at that 18% annualized mark. The holdings of the fund includes name like HDFC Bank, Bajaj Finance, HDFC, L&T etc.
Investing in mutual funds are risky and investors should do their own research. The author, or Greynium Information Technologies is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.