With the markets at record highs, the best way to invest currently would be Systematic Investment plans (SIPs). This is because it would enable you to average out in case the markets fall from current levels. Several research led agencies accord ratings to mutual funds. Here are 5 mutual funds SIPs to invest based on a 5-star rating from CRISIL.
Edelweiss Large & Mid Cap Fund
The fund generates returns by investing in both midcap and large caps. Edelweiss Large & Mid Cap Fund has been rated as 5-star by noted rating agency CRISIL.
In the fund, the fund manager has the flexibility to switch between large caps and midcaps. So, if for example large cap stocks have become expensive in terms of valuations, he can quickly move money to midcaps by selling a part of large cap stocks.
The funds assets under management is not too large and is placed at around Rs 778 crores. Banking stocks continue to remain at the top of the investment strategy of the fund with ICICI Bank, HDFC Bank, State Bank and Axis Bank finding a place in the top 5 holdings of the fund.
Given the good rating of the fund By CRISIL, investors can look to invest by way of SIPs in Edelweiss Large & Mid Cap Fund.
Invesco India Midcap Fund
This is another fund that been accorded a 5-star rating by CRISIL. Midcaps by nature are volatile and with the Sensex at record highs, investors should exercise same discretion and should hence go for SIPs of Invesco India Midcap Fund.
Minimum number of cheques required for SIPs is 12 and minimum amount required is Rs 500. Invesco India Midcap Fund holdings include names like Vinati Organics, Endurance Technologies Mpahsis, Cholamandalam and Gland Pharma.
The net asset value under the growth plan is Rs 78.99. Investors who can stay invested for a long term may reap decent returns.
The 1-year returns of the fund has been 67%, thanks to the rally seen in the last 1-year in stocks. Invesco India Midcap Fund is an open ended fund with assets under management of nearly Rs 1,500 crores.
IDFC Dynamic Bond Fund
If you are risk averse and looking at debt, where safety is important than IDFC Dynamic Bond Fund is a good investment. IDFC Dynamic Bond Fund has been rated as 5 star by CRISIL and money is locked in debt instruments and money market instruments.
The 3-year returns from the fund has been 9.94%, while the 5 year returns is 8.4%. More than 90% of the fund is invested in government securities, making IDFC Dynamic Bond Fund a safe investment option. Returns from these type of funds, generally move in tandem with how interest rates move. If interest rates move higher returns tend to be higher and so on. An SIP is possible in the fund with a minimum investment of Rs 1,000 every month.
SBI Equity Hybrid Fund
SBI Equity Hybrid Fund invests in equities and balances the risk by investing the rest in fixed income securities as well. The fund has invested around 70% in equities and around 30% in debt and cash.
SBI Equity Hybrid Fund has been rated as 5-star by Crisil and 4-star by Value Research. The returns in these type of funds can be lesser than the pure vanilla equity funds should the market rise as a part of the money is invested in debt. However, should the markets fall the losses could be restricted given the exposure to debt.
Canara Robeco Conservative Hybrid Fund
This fund generates income through investment in debt securities with marginal exposure in equity and money market instruments of various maturities and risk profile.
Value Research and CRISIL have both accorded the fund a 5-star rating. One can start an SIP in the fund with a small sum of Rs 1,000 each month.
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.