These 5 mutual funds to invest through Systematic Investment Plans are the top performing ones in India and are the most suitable to invest in 2016.
Are you looking for the best mutual funds to invest in? These five star rated mutual funds have been selected on the basis of a number of key parameters. They have been considered the most appropriate to invest on the basis of their risk profiles. The following are some of the essential parameters that you may like to consider before investing in them.
- Highest returns generated during the past 5 years
- Highest ranked mutual funds by CRISIL
- Top ratings by Value Research Organization (VRO)
- Assets under Management has been more than 100 crores
Rank 1: UTI Equity Fund
Characteristic: UTI Equity Fund is categorized under the large capitalization fund and is provided with rank 2 by CRISIL with 4 (out of 5) star rating by VRO. The AUM of this fund is Rs. 4499 crores.
Objective: The objective of this mutual fund is to invest at least 80% of its capital in equities having medium to high risk profiles; and the rest 20% in instruments of debt possessing low to medium risk.
Performance: Considering its performance traits, the fund has been able to beat its peers and has managed to generate 12% returns annually in the last 5 years.
Reason to Invest: This fund has been generating low volatile returns through a critical phase in equity markets. It has been able to achieve its objectives during the past 5 years with more than average performance in S&P BSE 100 stocks (12% against average of 5.8%). In the last 10 years, the fund has provided 15.5% returns in comparison to 12.2% returns in S&P BSE 100. This fund is one amongst the oldest funds considering its history of 22 years and has been performing consistently well; even in bearish markets.
Rank 2: ICICI Pru Focused Blue Chip Fund
Characteristic: Also a large cap fund, ICICI Pru Focused Blue Chip Fund has been provided with position 3 by CRISIL and rated 5 out of 5 by VRO. The AUM of this fund is Rs. 9433 crores.
Objective: The objective of this mutual fund is to invest in 20 large capitalized firms selected from 200 listed stocks in NSE on the basis of market capitalization.
Performance: This fund has been performing way ahead of its peers and has generated 11% returns annually in the past 5 years.
Reason to Invest: The fund operates with a clear and concise strategy and has shown consistent performance in the long run. Considering the last 5 years performance, the fund has depicted returns of 11%, which is more than the average return of 6.05% in CNX Nifty. This fact makes the fund an exclusive choice of investment among its peers. In addition, this fund is a unique SIP plan for child education.
Rank 3: Birla Sun Life Frontline Equity Fund
Characteristic: Birla SL Frontline Equity Fund is a large capitalized fund possessing the second rank as per the ranking of CRISIL and is rated with 5 stars by VRO. The AUM of this fund is Rs. 9792 crores.
Objective: The objective of this fund is to create long term capital growth through diversification along a number of sectors in BSE 200.
Performance: The fund has managed to beat its peers’ performance by depicting 11.2% returns in the last 5 years. According to the SIP calculator of Valueresearchonline, this is one of the best mutual funds in India. Say, if you have invested Rs. 1000 per month in this fund (by SIP) for the last 5 years, then your investment value would be Rs. 94040 at present.
Reason to Invest: This fund is a steady performer over the years. Considering its performance during the last 10 years, it has generated 17.8% return in comparison to 12% return by S&P BSE 200 funds. Over the decade, the fund has performed exceptionally well in different market cycles.
Rank 4: Franklin India Smaller Companies Fund
Characteristic: Franklin India Smaller Companies Fund is categorized under mid cap or small cap funds and possesses the second position by CRISIL with 5 stared rating by VRO. The AUM of this fund is Rs. 2512 crores.
Objective: The objective of this fund is to produce long term capital through investments in mid cap and small cap firms. The fund induces up to 75% of its investments in small cap companies.
Performance: The fund has performed really well during the last 5 years and has flattened its benchmark by generating 19% return annually. If you are considering investments for long 8 to 10 years, then this fund will be an optimum choice for you.
Reason to Invest: This fund distinguishes itself from orientation towards market capitalization. It invests a small portion of its capital into large cap portfolio and a huge portion into small cap firms. Thus, this fund is also known as smaller stock fund. The benchmark of CNX Midcap in the past five years was 7.1% annual returns, against which, this fund has generated 19% return annually.
Rank 5: Mirae Asset Equities Blue Chip Fund
Characteristic: Categorized under mid cap or small cap funds, Mirae Asset Equities Blue Chip Fund is ranked second by CRISIL along with 5 stared rating from VRO. The AUM of this fund is Rs. 896 crores.
Objective: The objective of this fund is to generate money from a diversified portfolio; mainly through investments in Indian equities. The fund aims to target the equities that are not a part of the best 100 stocks as per market capitalization.
Performance: This fund has well surpassed its benchmark; it has generated 22% annual returns during the last 5 years.
Reason to Invest: This fund invests most of its capital in mid cap funds and generates high levels of performance as the selected mid cap stocks are among the best. The fund has performed brilliantly during the last 5 years by outperforming its benchmark of 7.1% and average category of 13.8%.
So, which mutual fund have you decided to opt for? Do let us know your views about other profitable mutual fund investments that you would like to know about; we will be glad to offer our expert opinion right away.