Morningstar comes-up with ratings for the various mutual fund schemes and has over the years rated several such schemes. Here are 4 mutual fund schemes to consider for investment through SIPs, based on a 5-star rating from Morningstar.
Axis Midcap Fund
As the name suggests, Axis Midcap Fund tends to invest its assets under management in midcap stocks. This makes the returns more volatile, as midcaps tend to fluctuate more than largecaps.
Investors can start an SIP, with a minimum sum of Rs 500. The returns from the fund has been fantastic over the long and short term as well. In the short term period of 1-year, Axis Midcap Fund has given a returns of 66%, while in the 5-year returns from the fund is over 20% on an annualized basis.
The fund has exposure to stocks like Cholamandalam Investment, Coforge, ICICI Bank etc. Currently, the net asset value of the fund has been pegged at Rs 68.49 under the growth plan. As mentioned, this scheme is for those willing to take a risk.
Canara Robeco Emerging Equities Fund
Canara Robeco Emerging Equities Fund generates returns by investing in a diversified portfolio of large and mid-cap stocks. This gives come flexibility to the fund manager when investing and could be a good proposition. Mirroring the returns of the markets, the fund has given good returns.
The 1-year returns from the fund has been 64%, while the 3-year returns is more like 18% on an annualized basis. One can invest through the SIP route, where the investment is Rs 1,000 at the very least.
We would not advise investors to invest through the lumpsum route and the SIP route is the best way forward at the moment.
Kotak Equity Opportunities Fund
This fund is also rated 5-star by Morningstar. Again, like Canara Robeco Emerging Equities Fund, the scheme aims to invest in a mix of large and mid cap stocks across sectors.
Over the last few years, thanks to the markets rallying the fund has performed very well. It has generated returns of almost 60% in 1-year and 15% in the last 5-years on an annualized basis. The assets under management of the fund is as high as Rs 7,311 crores.
An SIP in the fund can be started with a small sum of Rs 1,000. For those looking at long term this is a good fund to invest. We wish to inform readers that markets have gine up sharply in the last 1-year and hence, even if you invest in SIPs now, you are investing at very high net asset values. Therefore, even your SIP amounts can be small, and if the markets gain, you can increase the quantum.
L&T Money Market Fund
The L&T Money Market Fund is for those looking to take zero risks. Since these funds mostly invest in government dated securities, they are considered as safe. A sum of Rs 1,000 can be used to start an SIP.
Investing in mutual funds poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only.