No 1 Rated Hybrid Funds From Crisil To Consider For SIP Investors

Markets have been exceedingly volatile this week, with the RBI Monetary Policy and surging bond yields in the US. Here are some hybrid mutual funds that can you can consider for SIPs, even in a volatile market.

Why are we recommending hybrid mutual funds?

We have always liked hybrid mutual funds, as it gives the fund manager an opportunity to move money from debt to equity and vice versa. Our own belief is that large cap mutual funds are unlikely to give you returns as in the past and the best bet now would be to look at hybrid funds.

Several large cap mutual funds have given returns of 17 to 20% over the 1-year. For that to happen in 2022, with inflation soaring across the globe and bond yields surging is unlikely in 2022. Therefore, we are recommending investors to now stick to hybrid mutual funds.

BOI AXA Mid & Small Cap Equity & Debt Fund

This fund has also been rated 5-star from Value Research, apart from the No 1 ratings by Crisil. A Rs 10,000 SIP each month for the last 3-years would have grown into 5.91 lakh. The fund has invested almost 75% in equities and the remaining in cash and cash equivalents. The minimum amount required to start an SIP is Rs 1,000 in the fund. The net asset value of the BOI AXA Mid & Small Cap Equity & Debt Fund is Rs 23.49 under the growth plan. It is suggested that investors should only invest for the long-term to see some decent gains. We also wish to inform readers that strong ratings do not guarantee returns in anyway.

The holdings of the company comprises names like Minda Industries, APL Apollo Tubes, Astra Pipes etc. At the moment, the fund has almost 18.2% in cash and cash holdings. In the debt segment the holdings including CDs of reputed firms and treasury bills.

PGIM India Hybrid Equity Fund

This fund has been rated no1 by Crisil. This is an aggressive hybrid fund, which invest around 65 to 80 percent in equities. At the moment the fund has 74% invested in equities. The 1-year returns from the fund is 13.80% on an annualized basis, while the 3-year returns has been 12.9%.

One can start an SIP in the fund with an investment of Rs 1,000 each month. The fund has holdings in HDFC Bank, Reliance Industries, Tata Motors, Kotak Mahindra Bank. On the debt side the fund has holdings in government of India, SIDBI securities etc. The corpus of the fund is fairly small at Rs 361 crores.