InvestorQ : Which are the best mutual funds for SIPs?
Prasad Tirodakar made post

Which are the best mutual funds for SIPs?

Answer
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Jekin Shah answered.
2 years ago


SIPs have become most safe investors’ go-to investment vehicle as it is one of the best ways to create wealth in the long term. SIP allows for regular investment of a fixed amount in any mutual fund scheme. What has helped SIP gain immense popularity is that through it investors can get the benefit of rupee cost averaging, compounding as well as disciplined investing. 

SIPs allow investors with the flexibility to decrease, increase as well as stop the SIP whenever they wish. These aspects coupled with the fact that one can open an SIP with as low as Rs. 500 has helped it gain traction in the world of investing. Here are a few of the highly recommended mutual fund schemes.


Scheme Name

AUM

Absolute

CAGR Return

Present Value of Rs10,000 p.m. SIP (in Rs lakhs)

(Rs cr)

Return

 

1 Y (%)

3 Y (%)

5 Y (%)

3 Y

5 Y

10 Y

HDFC Balanced Fund(G)

21,779

7.9

11.1

18.8

4.3

8.7

28.5

ICICI Pru Equity & Debt Fund(G)

28,807

7

10.9

17.5

4.3

8.5

27.2

Axis Focused 25 Fund(G)

3,714

23

15.7

18.4

4.9

9.7

--

Tata Equity P/E Fund(G)

3,520

13.5

15.5

24.5

4.8

10.2

32.3

DSPBR Midcap Fund-Reg(G)

5,720

8.9

16.3

25.8

4.6

10.2

35.7


HDFC Balanced Fund

  • Investors who want to follow a balanced approach in their investing, i.e. ~65% equity and ~35% debt, can invest in the scheme.
  • This fund aims to maintain an effectively diversified portfolio across market capitalizations.
  • The fund invests in companies that enjoy leadership positions in their industries with superior growth prospects and is available at a reasonable price.
  • Based on the interest rate outlook, the fund manager actively manages the debt portfolio.

ICICI Pru Equity & Debt Fund (previously ICICI Pru Balanced Fund)

  • This is an equity-oriented balanced fund. The fund, based on the market outlook, tactically allocates between debt and equity instruments.
  • When the market is overvalued, the fund increases its exposure in debt market and when the market is undervalued, it increases its allocation to equity.  
  • Those investors who are looking for a balanced investment, i.e. ~65% equity and ~35% debt, can opt for this scheme.

Axis Focused 25 Fund

  • This equity fund invests in a maximum of 25 high-conviction stocks from the top 200 stocks by market capitalization.
  • Companies have to have credible management, sustainable profit growth and cash flow, and clean balance sheet for the fund to invest in them.
  • Investors who want to take exposure in high conviction large-cap and mid-cap stocks can invest in the fund to create wealth in the long-term.

Tata Equity PE Fund

  • This is a value-conscious equity fund that aims to invest 70-100% of its AUM in stocks whose 12-month rolling price to equity (PE) ratio is lower than the 12-month rolling price to equity ratio of BSE Sensex.
  • For example, if the PE of BSE Sensex is 25, then the fund will invest in companies whose PE is sub-25.
  • The remaining AUM will then be allocated in other equity and debt instruments.
  • This fund is highly recommended for value-conscious investors who want to invest in large-cap and mid-cap stocks can invest in the fund.

DSP BlackRock Mid-Cap Fund

  • This fund invests in stocks beyond top 100 companies, based on the market capitalization.
  • The fund manager uses a bottom-up approach to invest in small and mid-cap stocks with consistent earnings and significant growth potential.
  • Those investors who want to primarily invest in mid-cap and small-cap stocks can invest in this fund.


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AR Kadam answered.
9 months ago


Depends on your financial goals and time to achieve your goals. Also on your age and risk taking capacity


user profile image
Jekin Shah answered.
2 years ago


SIPs have become most safe investors’ go-to investment vehicle as it is one of the best ways to create wealth in the long term. SIP allows for regular investment of a fixed amount in any mutual fund scheme. What has helped SIP gain immense popularity is that through it investors can get the benefit of rupee cost averaging, compounding as well as disciplined investing. 

SIPs allow investors with the flexibility to decrease, increase as well as stop the SIP whenever they wish. These aspects coupled with the fact that one can open an SIP with as low as Rs. 500 has helped it gain traction in the world of investing. Here are a few of the highly recommended mutual fund schemes.



HDFC Balanced Fund

  • Investors who want to follow a balanced approach in their investing, i.e. ~65% equity and ~35% debt, can invest in the scheme.
  • This fund aims to maintain an effectively diversified portfolio across market capitalizations.
  • The fund invests in companies that enjoy leadership positions in their industries with superior growth prospects and is available at a reasonable price.
  • Based on the interest rate outlook, the fund manager actively manages the debt portfolio.

ICICI Pru Equity & Debt Fund (previously ICICI Pru Balanced Fund)

  • This is an equity-oriented balanced fund. The fund, based on the market outlook, tactically allocates between debt and equity instruments.
  • When the market is overvalued, the fund increases its exposure in debt market and when the market is undervalued, it increases its allocation to equity.  
  • Those investors who are looking for a balanced investment, i.e. ~65% equity and ~35% debt, can opt for this scheme.

Axis Focused 25 Fund

  • This equity fund invests in a maximum of 25 high-conviction stocks from the top 200 stocks by market capitalization.
  • Companies have to have credible management, sustainable profit growth and cash flow, and clean balance sheet for the fund to invest in them.
  • Investors who want to take exposure in high conviction large-cap and mid-cap stocks can invest in the fund to create wealth in the long-term.

Tata Equity PE Fund

  • This is a value-conscious equity fund that aims to invest 70-100% of its AUM in stocks whose 12-month rolling price to equity (PE) ratio is lower than the 12-month rolling price to equity ratio of BSE Sensex.
  • For example, if the PE of BSE Sensex is 25, then the fund will invest in companies whose PE is sub-25.
  • The remaining AUM will then be allocated in other equity and debt instruments.
  • This fund is highly recommended for value-conscious investors who want to invest in large-cap and mid-cap stocks can invest in the fund.

DSP BlackRock Mid-Cap Fund

  • This fund invests in stocks beyond top 100 companies, based on the market capitalization.
  • The fund manager uses a bottom-up approach to invest in small and mid-cap stocks with consistent earnings and significant growth potential.
  • Those investors who want to primarily invest in mid-cap and small-cap stocks can invest in this fund.


    Scheme Name

    AUM

    Absolute

    CAGR Return

    Present Value of Rs10,000 p.m. SIP (in Rs lakhs)

    (Rs cr)

    Return

     

    1 Y (%)

    3 Y (%)

    5 Y (%)

    3 Y

    5 Y

    10 Y

    HDFC Balanced Fund(G)

    21,779

    7.9

    11.1

    18.8

    4.3

    8.7

    28.5

    ICICI Pru Equity & Debt Fund(G)

    28,807

    7

    10.9

    17.5

    4.3

    8.5

    27.2

    Axis Focused 25 Fund(G)

    3,714

    23

    15.7

    18.4

    4.9

    9.7

    --

    Tata Equity P/E Fund(G)

    3,520

    13.5

    15.5

    24.5

    4.8

    10.2

    32.3

    DSPBR Midcap Fund-Reg(G)

    5,720

    8.9

    16.3

    25.8

    4.6

    10.2

    35.7