The Nifty is still down 26 per cent from peak levels that were hit in Jan 2020. There has been severe wealth erosion in just two months and investor returns have turned negative very swiftly, especially if they have invested in the last 1, 2 and 3 years.
However, the simple mantra to make money is to buy low and sell high. Currently, equity mutual fund investments are available at low net asset values and hence from a medium to long term investment point of view, it makes sense to invest.
Here are 4 equity mutual fund schemes that you could consider during coronavirus times:
Axis Bluechip Fund - growth
Axis Bluechip Fund has been one of the best equity mutual funds in terms of returns, even in a depressed market. The 1-year return from the fund is 5.76, while the 3-year returns is 8.56. This is the best when it comes to returns from largecap funds.
Crisil has rated the fund as ‘5-star'. The portfolio of the fund is also solid and includes names like Avenue Supermarts, Kotak Mahindra Bank, HDFC Bank and ICICI Bank. One can invest in the fund through the SIP route, where you would need to initially invest Rs 5,000 and later a sum of Rs 500 every month.
It's important to realize that you must invest only if you have a long term view in mind.
2. Canara Robeco Bluechip Equity Fund - Growth
This is another fund that has been well rated. It has a 5-star rating from Value Research and also from Crisil. The 3-year returns is 4.95 per cent, while the 7-year returns is almost 10.55 per cent.
The fund mainly invests in largecap stocks and has holdings in HDFC Bank, ICICI Bank, Reliance Industries and HDFC.
One can invest in the fund through the SIP route, where the initial investment required is Rs 5,000 and subsequently one can invest with a small sum of Rs 1,000.
The assets under management is not very large at around Rs 330 crores.
3. BNP Paribas Large Cap Fund
BNP Paribas Large Cap Fund is another fund that has performed well, when compared to most peers. Of course, the returns have taken a hit, due to the fall in stock markets, because of the Covid-19 pandemic.
However, one can expect decent returns, if one is willing to hold and stay invested for 3-5 years.
The 3-year returns from the fund has been 2.24 per cent, while the 7-year returns has been more than 11 per cent.
One can invest in the fund through the SIP route. The initial investment required is Rs 5,000 and than Rs 1,000 each month. The fund has holdings in stocks like HDFC Bank, ICICI Bank and Reliance Industries.
4. DSP Equity Fund
DSP Equity Fund has a 5-star rating from Crisil and a 4-star rating from Value Research. While all of the three mentioned above, are largecap funds, DSP Equity Fund is a multicap fund. This means it invests in largecap, midcap and small cap stocks. However, if we analyze the scheme, most of it is in largecap funds.
The number of stocks in the portfolio is around 48 per cent, with the top 10 stocks making around 47 per cent of the portfolio.
This is a good fund to invest with a very solid portfolio.
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