Equity mutual fund schemes have had it very good in the last 1-year. Most have generated returns between 40 to 75% in the last 1-year. Debt funds on the other hand have generated returns that have been in line with interest rates. However, we have chosen 7 based mutual fund schemes to invest based on ratings of research agencies like Value Research, Morningstar and rating agency CRISIL. We have selected a mix of equity, debt or a combination of both.
Axis Bluechip Fund
Axis Bluechip Fund invests in equity and equity related instruments of large cap companies. The fund has been rated 5-star by Morningstar and Value Research.
The net asset value under the growth plan is Rs 42.42, a level at which new investors would have to invest. An SIP is also possible as investment, which could be done with a minimum investment of Rs 500. If you are looking to invest in bulk in the Axis Bluechip Fund, it is not desirable as the Sensex at 52,500 points is at near peak. So, staggered investment in Axis Bluechip or another mutual fund scheme would be the right way to go about investing.
The fund has returned investors about 44.78% in the last one year, while the 5-year returns are 16.37%.
UTI Flexi Cap Fund
UTI Flexi Cap Fund generates long term capital appreciation by investing in equity and equity related securities of companies across market capitalizations. The fund has been rated 5-star by Crisil and Value Research.
This fund has seen phenomenal returns of nearly 68% in the last 1-year. The AUM is sizeable at more than 18,000 crores. The biggest advantage of flexi cap funds is the fund manager can freely switch from large caps to mid and small caps and vice vesa.
For those investors, who have a time horizon of 5 to 7 years, this investment could be a good bet. An SIP UTI Flexi Cap Fund is also possible with a sum of Rs 500 each month. The net asset value of the fund is Rs 234.39 under the growth plan.
ICICI Prudential Bond Fund
If as an investor, you are looking for a steady stream of income go for this debt fund, which is rated as 5-star by Morningstar and has a 4-star from Value Research.
The scheme seeks to generate income through investments in a range of debt and money market instruments while maintaining the optimum balance of yield, safety and liquidity.
In line with falling interest rates, this ICICI Prudential Bond Fund has generated 4.5% returns in the 1-year for investors, while the 3-year returns has been close to 9% and the 5-year returns has been 7.87%. Most of the investment is either in state government issued securities or Government of India issued securities.
Mirae Asset Tax Saver Fund
This fund allows you to save tax under SEC80C of the Income Tax, subject to a ceiling of Rs 1.5 lakhs every financial year. This basically allows you a tax savings as well as capital appreciation by investing your money in equity related instruments.
Mirae Asset Tax Saver Fund has been rated 5-star by Value Research and Morningstar. The fund has given investors a return of a whopping 65.58% in the last 1-year. The assets under management of the fund is nearly 8,000 crores. Investors can look to invest through te SIP route as well in the fund.
Mirae Asset Tax Saver Fund has invested in stocks like HDFC Bank, ICICI Bank, Infosys, Axis Bank and TCS. For those looking to save tax and at the same time generate returns by investing for the long-term, this scheme is a good to invest.
Axis Small Cap Fund
This is a fund that is suitable only for investors who are willing to take the risk. This is because returns from small cap stocks are very volatile and they tend to fall faster than the markets, so to that extent the risk remains. Similarly, they are capable of giving far superior returns as well, when compared to the indices.
Axis Small Cap Fund has been rated 5-star by CRISIL and Value Research. The fund has investments in the stocks of Galaxy Surfactants, Tata Elxi, JK Lakshmi Cement, Narayana Hrudayalaya etc.
Since this is a small cap fund, we would suggest investors to look at SIPs, which would help you hedge your risk, in case of a severe market downturn.
Nippon India Gilt Securities Fund
This investment is for investors looking for absolutely safety, since the money is invested in state government or central government securities. The fund is rated as "5 star" by Morningstar. There is not much to say here as the capital is safe and returns would be low, as interest rates are low.
Nippon India Gilt Securities Fund has heavily invested in government securities.
ICICI Prudential All Seasons Bond Fund
The difference between ICICI Prudential All Seasons Bond Fund and the Gilt Securities Fund mentioned above, is that Gilt Funds park money exclusively in government securities, while bond funds also invest in corporate instruments like non convertible debentures or bonds.
This bond fund has been rated as 5-star by Value Research. The three year returns from the fund has been 8.54%, while the 5-year returns have been closer to the 8% mark. If you are looking for safety and returns, these bonds funds maybe a good bet.
Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.