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2 SIPs That Generated Much Better Returns Than Others

Sunil Fernandes
·3-min read

The returns from Axis Bluechip Fund and Canara Robeco Bluechip Equity Fund have been much better than peers. In fact, both these funds have also been well rated by Crisil and Value Research, which have accorded a 5-star rating for both these funds. Let's take a look at these funds and why it makes sense to invest in the same.

Axis Bluechip Fund – Good track record

Axis Bluechip Fund has given a returns of 8.75 per cent and 11.05 per cent over a three and five year period on an annualized basis. If you compare it with larger peers like ICICI Prudential Bluechip Fund or SBI Bluechip Fund, you realize that the returns are far superior. Little doubt why it has been accorded a 5-star rating.

A monthly SIP of Rs 10,000 has generated as much as Rs 4 lakhs over a three year period, You can start an SIP with a small sum of Rs 1,000 and 6 post dated cheques. If you are looking to invest by way of SIPs, you can hedge your market risk and take care of volatility.

Axis Bluechip Fund – Good portfolio

Axis Bluechip Fund has a good portfolio, which include names like HDFC Bank, Infosys, Reliance Industries, Bajaj Finance among others. The fund was launched in 2010 and has since given a returns of 11.18 per cent on an annualized basis.

If you are looking to buy into the fund, you can do so at the current NAV of Rs 31.03 for the growth scheme and Rs 14,89 under the dividend scheme. Axis Bluechip Fund is essentially a largecap fund and invests in largecap stocks. Currently about 95 per cent is invested in stocks, while the remaining is in cash. Returns from largecap equity schemes are less volatile compared to mid and small cap funds.

This fund is a good bet for those looking at long term investment.

Canara Robeco Bluechip Equity Fund

Canara Robeco Bluechip Equity Fund is another fund that has a 5-star rating from Value Research and Crisil. The fund has generated a 1 year returns of 13.73 per cent, while the 5-year annualized returns has been placed at 10.40 per cent.

The portfolio of the fund is pretty sound and includes names like Reliance Industries, HDFC Bank, Infosys, ICICI Bank and TCS.

An SIP of Rs 10,000 every month started three years ago would have fetched Rs 4.07 lakhs today. The amount required to invest each month through the SIP route is Rs 1,000.

The current NAV of the fund under the growth plan is Rs 27.52 and under the dividend plan the same is Rs 16.89. A good bet for those looking at investing for a period of 5 to 7 years.

About the author:

Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.

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