Equity mutual funds have become more appealing as a result of their huge returns over the last few years. Mutual fund funds are pouring into the market in droves. When looking at the rise in mutual fund folios over the last year, the extent of new investment growth becomes apparent. Mutual funds are perfect for investors who don't have a lot of money to invest or don't have the time or inclination to study the market but still want to accumulate their capital. The SEBI regulates the mutual fund industry in India (The Securities and Exchange Board of India). It keeps an eye on the performance of all mutual funds. Furthermore, these fund houses are transparent, since they are required to publish their performance reports regularly.
Equity Mutual Funds
A mutual fund scheme that invests primarily in equity stocks is known as an equity fund.
Equity funds are run by professional portfolio managers with extensive experience, and their past success is transparent. The government has strict transparency and reporting standards for equity funds. There are various types of equity mutual fund schemes, each of which provides a specific underlying portfolio with varying levels of market risk.
Large-cap equity funds spend a considerable portion of their assets in businesses with a strong market capitalization. This form of the fund is known for offering long-term stability and stable returns. Large-cap stocks are less risky than mid-cap and small-cap stocks because they are less volatile.
What Is SIP?
SIP (Systematic Investment Plan) is a mutual fund tool that enables even the most novice investor to engage in the stock market. The SIP (Systematic Investment Plan) is a mutual fund tool that allows even beginner investors to participate in the stock market. SIP stands for systematic investment planning, and it is a method of investing in mutual funds in tiny, regular installments. You can easily begin investing in SIPs via the platform. The auto-debit feature in SIP makes investing a breeze. When you pick a sum and a time period, a fixed amount will be deducted from your bank account and charged to the SIP fund of your choosing at the predetermined time interval. These large-cap equity mutual funds are suggested for those who are willing to take a chance. Here are some of the best equity mutual funds, according to Crisil, that have performed well in the past and are good bets for SIP investments.
6 Best Performing Equity Mutual Funds SIP
|Name of the Fund||CRISIL Rating||1 Year Return||3 Year Return|
|Canara Robeco Bluechip Equity Fund||RANK 01||54.31%||18.35%|
|Axis Bluechip Fund||RANK 01||39.96%||18.44%|
|Kotak Bluechip Fund||RANK 01||56.44%||13.45%|
|SBI Blue Chip Fund||RANK 02||59.83%||13.22%|
|BNP Paribas Large Cap Fund||RANK 02||49.38%||15.02%|
|Mirae Asset Large Cap Fund||RANK 03||55.59%||14.40%|
Canara Robeco Bluechip Equity Fund
The fund is ranked number one by Crisil under Large Cap Equity funds. This fund has done really well over the last few years and has generated a return of 54.31% for 1 year and 18.35% for 3 years. This rate beats even rates from fixed interest-bearing instruments. The company's portfolio comprises stocks HDFC Bank, ICICI Bank, Infosys, Reliance Industries, and State Bank of India. This is a large-company investment fund. When stock values decline, those funds appear to fall less than those that invest in smaller companies. As a result, they are better suited to cautious equity buyers. Returns of less than one year are absolute, whereas returns of one year or more are annualized. To begin a SIP, a minimum initial investment of Rs 5,000 is needed, with monthly investments as low as Rs 1,000.
Axis Bluechip Fund
The fund is ranked number one by Crisil under Large Cap Equity funds. This fund has done really well over the last few years and has generated a return of 39.96% for 1 year and 18.44% for 3 years. The fund is holding 95% in equity, 5.4% in debt 0.4% in cash. The top holdings of the company are HDFC Bank, Infosys, Bajaj Finance, TCS, and Kotak Mahindra Bank.
If you have invested Rs 5000 per month for one year, the amount as of today will be Rs 70, 323 with almost 40% returns per annum.
Kotak Bluechip Fund
The fund has given a solid 44.91 percent returns in the last year, though the 5-year returns are more subdued at 14.35 percent on an annual basis. The benchmark index is Nifty 50 TRI. It is ranked number 1 by the CRISIL rating agency. The schemes aim to find companies that are relatively stable about the wider market and to select stocks based on their financial ability, management strategies and credibility, track record, and liquidity. The fund mainly invests 98% in equities and 2% in cash instruments. The fund was started in February 2003 and the fund size is Rs 2,207 crore.
BNP Paribas Large Cap Fund
Since its inception in 2004, the fund has generated an annualized return of 15.08 % over the last three years. While one year returns at 49.38%.
Individuals will begin investing in the fund with a one-time payment of Rs 5,000, followed by a monthly payment of Rs 500. It has been ranked number 2 by CRISIL. The portfolio of the fund consists of stocks like HDFC Bank, Infosys, Reliance Industries, and ICICI Bank. Again, a very strong portfolio and investors should have no complaint about the solidness of the portfolio.
SBI Blue Chip Fund
SBI Blue Chip Fund is amongst the few funds that have given returns of almost 13.22 percent in the last 3 years. While one year return is at 59.83 percent. It has been ranked number 2 by CRISIL. A diversified equity fund has been introduced by SBI Mutual Fund. SBI Blue Chip Fund will invest in stocks with a market capitalization equal to or greater than the BSE 100 Index's least market capitalized portfolio.
Mirae Asset Large Cap Fund
The fund is ranked number 3 by Crisil under a Large-cap Equity fund. The last three year's returns of the fund have been close to 14.42 percent. While one year return is 55.59%. HDFC Bank, ICICI Bank, and Reliance Industries are only a few of the high-quality stocks in the fund's portfolio. If redeemed within 182 days, the redemption rate will be 2%, and if redeemed between 183 and 365 days, the redemption rate will be 1%. The fund was launched in January 2013 and the size of the fund is Rs 23.353 crore.
Now, for these funds to continue to earn returns in the future, the index heavyweights must rally, as must the markets. Because most of these stocks are index heavyweights, returns will be primarily determined by how the index performs.