Systematic Investment Plans or SIPs as we call them, have now become a favourite of most investors, particularly those having a regular source of salary income. It is also the best way to invest given that the risks remain limited should there be a sudden downside in the market. In fact, it allows you to buy at lower levels, thus averaging your acquisition cost. Markets have rallied significantly from here and hence those who are buying into SIPs now have to do it at a higher net asset value. Here are 4 SIPs you can invest in, which are rated 5-star by Morningstar.
Axis Bluechip Fund
This fund has been rated as "5-star" not only by Morningstar but also by Value Research. We believe that this fund been rated so, because of its strong performance and also because of its solid portfolio. Axis Bluechip Fund has delivered returns of about 43.68% in 1-year, while the 3-year returns has been 14.82% on an annualized basis and the 5-year returns has been 16.20%.
The fund was established way back in 2010 and has consistently delivered returns and has also managed to garner significant amounts over the years and now has assets under management of more than Rs 28,000 crores.
If you have a small sum of just Rs 500, you can start an SIP making it very much affordable to all investors. The portfolio of the fund comprises names like Infosys, HDFC Bank, Bajaj Finance, TCS etc. We recommend investors to start an SIP for at least 5-years, which would be the ideal way to create a decent corpus.
Canara Robeco Emerging Equities Fund
Unlike Axis Bluechip Fund, the Canara Robeco Emerging Equities Fund invests in stocks across a diversified portfolio of large and mid-cap stocks. This means the fund manager has the flexibility to quickly switch from midcaps to largecaps and vice versa, if he feels the need to do so.
You can start your SIP in Canara Robeco Emerging Equities Fund with a sum of Rs 1,000 every month. The assets under management of Canara Robeco Emerging Equities Fund is almost Rs 9,633 crores.
If you had started an SIP about 3 years ago, with a sum of Rs 10,000 you would have created a corpus of Rs 5.48 lakhs against an investment of Rs 3.6 lakhs back. We are in no way advocating that you are always going to get these kind of returns. The stock markets are uncertain and we also seen the kind of havoc that was created last year. So, one needs to invest in SIPs and at the same time diversify the holdings to include gold and debt as well.
Invesco India Infrastructure Fund
Invesco India Infrastructure Fund has been rated 5-star by Value Research and Morningstar. The fund tries to generate capital appreciation by investing in stocks that is predominantly constituted of equity and equity related instruments of infrastructure companies.
So, we wish to inform investors, that this means the fund to a large extent depends on how the economy pans out and the government and private sector's push on infrastructure growth in the coming years. The fund has holdings in stocks like L&T, Indraprastha Gas, Ultratech Cement, Bharat Electronics, KNR Constructions etc. This fund is very small in size and has assets under management of only Rs 179 crores. Sn SIP can be started with a small sum of Rs 1,000. Go for SIP of Invesco India Infrastructure Fund if you are bullish on the infrastructure space.
Nippon India Short Term Fund
We have chosen one debt fund now for SIP, so you can diversify your portfolio. Nippon India Short Term Fund seeks to generate stable returns for investors with a short term investment horizon by investing in debt and money market instruments.
So, the returns may not be great because of complete exposure to debt, but, the risk too would not be great. So, Nippon India Short Term Fund is meant for those who want to protect their capital. This is another fund that has been rated as 5-star by Morningstar. The returns from the fund has been excess of 8% in the 3-year period.
Investing in mutual funds is risky and investors need to be cautious. Neither Greynium Information Technologies nor the author would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets have closed at an historic high.