In the past 2 years, domestic investors have shown much faith in the Indian equity markets. If not directly in the stocks, they are preferring to invest in the companies, indirectly by mutual funds. In the last 2 years, most of the company stocks have performed significantly well. Here, a bluechip mutual fund has been discussed, that invests in large-cap company stocks, to fetch you good returns with security.
SIP Investment rationale for bluechip mutual funds
A bluechip fund means, the fund manager will investor will diversify your money mostly in the large-cap stocks. These kinds of funds come with higher security and assurance of the company stocks. As per SEBI guidelines, the bluechip mutual funds will invest at least 80% among the top 100 companies by market capitalization. Bluechip or large-cap funds generally offer good returns in long term. Small-cap funds can fetch you higher returns in the near term, but these will carry much higher risk in the equity markets. So if you have a lower risk appetite, the bluechip funds are the best for you to start investing. The below-mentioned fund has been rated 5 star by reputed rating agency Morningstar.
According to government regulation, if an investor sells the fund after 1 year, he/she will have to bear the long-term capital gain tax. In case the long-term capital gain crosses Rs. 1 lakh, the tax rate will be 10%. If an investor sells the fund before 1 year, the short-term capital gain tax will be applicable, at 15% tax rate.
Canara Robeco Bluechip Equity Fund - Regular Plan-Growth
Canara Robeco Bluechip Equity Fund - Regular Plan is one of the best bluechip mutual fund SIPs, available for investors, given lucrative upside in long term. The Canara Robeco Bluechip Equity Fund's NAV stood at Rs. 43.11, and its fund size is Rs. 5690.59 Crore. The Expense ratio is 1.94%, and the category average is 2.30%. compared to the market average, this fund's ER is lower, so that can fetch you better profits. High ER leads to higher operating costs, which can be another burden for the investors.
In addition to that, the Fund Size means the total market value of the mutual fund, which is the fund under discretionary management. Canara Robeco Bluechip Equity Fund - Regular Plan's fund size is considered good compared to most of the other peer funds. So, this can assure you of better liquidity about the mutual fund SIP.
Absolute and annualized returns
Canara Robeco Bluechip Equity Fund - Regular Plan's SIP's absolute returns are lucrative. In the last 1-year SIP return stood at 13.50%, in the last 2 years it has fetched 38.55 % returns, in the last 3 years it has fetched 50.30% returns, in the last 5 years it has fetched 69.00% returns, and in the last 10 years, it has fetched 139.65% returns. Annualized returns of this fund's SIP were 34.77% in the past 2 years, and 28.27% in the past 3 years.
Canara Robeco Bluechip Equity Fund - Regular Plan's absolute mutual fund returns are the best in more than 5 years term. In the last 1 year return stood at 27.02%, in the last 2 years it has fetched 54.85% returns, in the last 3 years it has given 83.84% returns, in the last 5 years it has fetched 138.57% returns, and in the last 5 years, it has given 343.06% returns. Additionally, in the past 1 year, the Canara Robeco Bluechip Equity Fund's annualized returns stood at 27.02% while the category average is 24.07%.
Canara Robeco Bluechip Equity Fund - Regular Plan's Portfolio Turnover Ratio was 35.00%. This fund's equity holding is 94.55%, and 5.45% in others. The top 5 equity holdings of the Canara Robeco Bluechip Equity Fund - Regular Plan's are, Infosys Ltd., ICICI Bank, HDFC Bank, Reliance Industries Ltd., Tata Consultancy Services Ltd., Larsen & Toubro Ltd., Bajaj Finance Ltd., State Bank Of India, Housing Development Finance Corporation Ltd., Axis Bank Ltd. The Canara Robeco Bluechip Equity Fund's Large Cap Investments are 72.67%, Mid Cap Investments are 9.75%, and 12.13% in other funds.
Other available funds in the peer are BOI AXA Flexi Cap Fund, Quant Flexi Cap Fund, PGIM India Flexi Cap Fund, IDBI India Top 100 Equity Fund, etc.
Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.
(Data mentioned as on January 18, 2022)