3 SIP Mutual Funds To Consider Based On 5-Star Rating From Morningstar

It's again the beginning of the month and investors are looking to invest in SIPs or switch to new Systematic Investment Plans. We are recommending a few SIP plans based on the ratings from Morningstar. For sometime now we have been advocating only SIPs as the markets have run-up sharply over the last 1-year. Here are 3 SIPs to consider for long-term investors.

Axis Flexi Cap Fund

This fund has been accorded a 5-star rating from Morningstar. Let's take a look at how the fund has performed over the last few years. This is a Flexi Cap fund, which means the fund manager has the choice to move money from largecap funds to mid and small cap funds and the other way round as well.

Returns from Axis Flexi Cap Fund

1- year	3-year, annualized	5-year, annualized
49.48%	17.22%	NA

Other details of Axis Flexi Cap Fund

NAV	Rs 18.61, growth
Assets under management	Rs 8,566 crores
Investment strategy	Equity
Risk	Very high

 

 

Axis Flexi Cap Fund SIPs: For those willing to take risk

Investors who are long-term investors and are willing to take a risk can go for these SIPs. An SIP started 3-years ago in Axis Flexi Cap Fund for Rs 10,000 every month is worth Rs 5.25 lakhs today. That is a remarkable set of returns from the fund. In fact, most of the equity funds from the Axis Mutual Fund stable have done well over the years.

It's important to note that markets have gone from 33,000 points on the Sensex a year ago to 53,000 points. It is therefore not worth considering lumpsum at this stage and investors should stick to Systematic Investment Plans. Apart from Axis Flexi Cap Fund we are also recommending two other funds below for long term investors.

 

Quant Midcap Fund

Quant Midcap Fund is a high risk investment, given that the fund invests invests in midcaps, which are volatile. However, if you go through the SIP route this is taken care off, as the law of averages applies.

Returns from Quant Midcap Fund

1- year	3-year, annualized	5-year, annualized
88.17%	23.52%	19.03%

Other details of Quant Midcap Fund

NAV	Rs 109.56, growth
Assets under management	Rs 110 crores
Investment strategy	Equity
Risk	Very very high

 

 

Quant Midcap Fund: A decent performer

Quant Midcap Fund has been rated as 5-star by Morningstar. Investors can start a SIP in the fund with a sum of Rs 1,000 every month. The fund size is not too large and this gives the fund manager some flexibility when investing.

It's advisable to start an SIP with a small sum at the moment, given that the markets are high and when the markets fall, you can increase the size of the SIP. This would be a good strategy for investors to adopt for Systematic Investment Plans, given that the Sensex is at 53,000 points. Quant Midcap Fund is an investment for those willing to take serious risk. If you do not have an appetite for the same, avoid this mutual fund scheme. We at goodreturns are not recommending any lumpsum investment at the moment, as the markets are overpriced.

 

SBI Small Cap Fund

This is another fund that is high risk, but, is rated 5-star by Morningstar. This fund has been a consistent performer and has given good returns over the last 1-year. Here are

Returns from SBI Small Cap Fund

1- year	3-year, annualized	5-year, annualized
88.28%	21.86%	21.03%

 Other details of SBI Small Cap

NAV	Rs 95.30, growth
Assets under management	Rs 9,010 crores
Investment strategy	Equity
Risk	Very very high

SBI small cap fund: Invest small amounts

The portfolio of SBI Small Cap Fund includes names like Elgi Equipments, V-Guard Industries, Carborundum Universal and Sheela Foam. The fund has given superb returns in the last 1-year. We suggest to invest small amounts at the current juncture and gradually increase the same, should the markets fall. If you redeem your units before a period of 1-year there is a charge of 1% that would be levied as load fees.

An SIP can begin with a sum of Rs 500 and investors need to hand-over 12 cheques for the purpose of investments.

 

Disclaimer

Please note, investing in mutual funds is risky and investors should exercise caution. Please do adequate research. Neither Greynium Information Technologies, nor the author would be responsible for losses incurred based on the above article.