When it comes to evaluating risk-adjusted returns or a historical record of a fund, mutual fund rating gives investors a clear insight into both risk and potential to generate returns in the future. Various agencies are in charge of assigning Mutual Fund ratings. CRISIL, ICRA, MorningStar, ValueResearch, and others are just a few examples. The mutual fund ratings do not allow you to choose the best one, however, it works by sorting a variety of mutual funds in order to find a fund that may be a part of your portfolio to meet your personal finance goals. In terms of mutual fund ratings, we have selected three best-performing mutual funds that are not only rated 4 to 5 stars by Value Research and Morningstar but have also done well based on past returns.
Axis Bluechip Fund Direct Plan Growth
Among the Bluechip fund category, Axis Bluechip fund has undoubtedly performed well since its existence from the last 8 years. The rationale behind this is that Axis Bluechip Fund Direct Plan-Growth returns over the last year are 40.14 percent. According to Value Research statistics, it has generated 16.80 percent average yearly returns since its inception. The fund has equity allocation across Financial, Technology, Services, Healthcare, FMCG sectors. Infosys Ltd., HDFC Bank Ltd., Bajaj Finance Ltd., Tata Consultancy Services Ltd., and Avenue Supermarts Ltd. are the fund’s top five holdings.
This fund has been rated by 5-star by both Morningstar and Value Research making it a decent bet for long-term capital appreciation. The fund currently has Rs 28,233 Cr in asset under management (AUM), and the current NAV as of 20 July 2021 is Rs 46.33. The fund has a low expense ratio of 0.49% and an exit load of 1%. One can start investing in this fund with a minimum amount of Rs 500 by the most preferred route Systematic Investment Plan (SIP).
Canara Robeco Emerging Equities Fund Direct Growth
Canara Robeco Emerging Equities Fund Direct-Growth is a Large & MidCap mutual fund launched by the fund house Canara Robeco Mutual Fund in January 2013. This fund has also received a 5-star rating from both Morningstar and Value Research, indicating that it has the potential to generate risk-adjusted returns. Canara Robeco Emerging Equities Fund Direct-Growth returns for the last year were 59.88 percent, according to Value Research statistics.
It has generated an average yearly return of 22.81 percent since its inception. The financial, automobile, healthcare, technology, and chemical sectors make up the majority of the fund’s holdings. HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Axis Bank Ltd., and Bajaj Finance Ltd. are among the top five holdings of the fund. The fund has an expense ratio of 0.64% and SIP can be started with a minimum amount of Rs 1000. The fund currently has Rs 9,633 Crore in assets under management (AUM) and a NAV of Rs 161.33 as of July 20, 2021. If units are redeemed within one year of investment, the fund imposes a 1% exit load.
Nippon India Short Term Fund Direct Growth
Nippon India Short Term Fund Direct-Growth is a Short Duration mutual fund scheme that was established in January 2013 by the fund house Nippon India Mutual Fund. The 1-year returns for Nippon India Short Term Fund Direct-Growth are 6.42 percent. According to Value Research, it has provided an average yearly return of 8.79 percent since its inception. The debt allocation of the fund is spread throughout the Engineering, Construction, Sovereign, Energy, and Financial sectors. India Infradebt Ltd., Reserve Bank of India, Housing Development Finance Corpn. Ltd., GOI, and India Grid Trust are among the fund’s major holdings.
The fund’s expense ratio is 0.33 percent, which is comparable to other funds in the same category. As of July 20, 2021, the fund has Rs 9,249 crore in assets under management (AUM) and a NAV of Rs 44.04. The reason behind picking this fund for you is the fund has no exit load and you can start SIP per month with Rs 500.
Top Performing Mutual Funds In India
Based on the ratings and returns, here are the three best-performing mutual funds in 2021 to start SIP.
|Funds||1 -Year Returns||3 -Year Returns||5-Year Returns||Rating by Morningstar||Rating by Value Research|
|Axis Bluechip Fund Direct Plan-Growth||40.14%||15.42%||17.39%||5 star||5 star|
|Canara Robeco Emerging Equities Fund Direct-Growth||59.88%||18.39%||19.18%||5 star||5 star|
|Nippon India Short Term Fund Direct-Growth||6.42%||9.03%||8.13%||5 star||4 star|
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