5 equity mutual funds to invest based on “5 star” ratings by Morning Star
Canara Robeco Bluechip Equity Fund
This is a fund that has been rated 5 stars by Morning Star, CRISIL and Value Research, making it a good large cap equity mutual fund to buy in India. The fund is mandated to invest in large cap stocks and enjoys high ratings overall. The fund’s assets under management are around Rs 2,888 crore, which isn’t great compared to other peers, but its performance, portfolio and ratings make it a great investment bet.
A SIP started for Rs 10,000 3 years ago would have made it possible to create a corpus of Rs 5.13 lakhs. This means that a sum of Rs 3.6 lakhs made it possible to create a corpus of Rs 5.13 lakhs. Investors who wish to invest in Canara Robeco Bluechip Equity Fund can do so through a small SIP of Rs 1,000 each month.
Axis Blue Chip Fund
This equity mutual fund has been rated “5 stars” by Value Research and Morning Star. Axis Blue Chip Fund has been a constant player and has often received great investor confidence.
The 3-year returns of the fund are 15.44% on an annualized basis, while the 5-year returns were 16.28% on an annualized basis. The top 10 stocks represent 66% of the fund’s portfolio. HDFC Bank, Infosys, Bajaj Finance and TCS constitute a significant portion of Axis Blue Chip Fund’s holdings. The fund has significant assets under management to the tune of Rs 27,000 crore. Under SIP, an investment sum can be as small as Rs 500. One thing to note is that the Sensex is at 53,000 points which is close to the record and therefore investing a lump sum is dangerous.
BNP Paribas Large Cap Fund
Again, this fund has been rated by Morning Star as “5 stars”. This is a fund that invests largely in large cap funds. An investment of Rs 1 lakh three years ago would have brought in Rs 1.5 lakh today. The net asset value under the growth plans is Rs 126.22.
The fund’s 5-year returns have been close to 13% on an annualized basis, which isn’t bad at all. Unlike Axis Blue Chip Fund, the size of assets under management is rather small, at around Rs 1,047 crore. BNP Paribas Large Cap Fund has invested 96.5% in equities and the remainder is held in cash and near cash.
The fund’s holdings include stocks like ICICI Bank, HDFC Bank, Reliance Industries and Axis Bank, among others.
Invesco India Mid Cap Fund
This is a mid-cap fund, which means a warning to investors that if benchmarks fall, net asset value may fall more quickly and if indices rise, returns may outweigh gains in the index.
The fund has one exception in the past year, giving a return of 66%, while the 3 year annualized returns were 18%. The 5-year returns have been around that 17% mark.
Invesco India Midcap Fund invested almost 96% in stocks and the remainder in cash and cash equivalents. Most of the funds are invested in mid cap stocks, including names like Vinati Organics, Endurance Technologies, Gland Pharma, Mphasis, etc.
The current net asset value under the growth plan is Rs 78.04.
Mirae Large Cap Fund
This is a fund that has been rated “5 stars” by CRISIL and Morning Star, making it an excellent mutual fund to buy at current levels for long-term investors. Those looking to buy into this fund can do so at the current net asset value of around Rs 71.
This is a large cap equity mutual fund, which means there is less volatility, although the risk remains as always with stocks.
A sum of Rs 1 lakh invested three years ago would have given a current value of Rs 1.53 lakh, which is not bad at all. Mirae Largecap Fund has significant assets under management of Rs 25,721 crore which is not bad at all.
Investing in mutual funds is risky and investors need to understand the risk. Greynium Information Technologies and the author assume no responsibility for any losses incurred on the basis of the decisions contained in the article. The article is intended for informational purposes only.