This year has not been an exceptional year for equity mutual funds. In fact, over the last 2-months we are seeing a steady outflow from equity mutual funds. However, individuals willing to hold for the long term can generate decent returns. Here are 5 equity mutual funds that have a 5-star rating from Crisil and can be considered for investment.
1. Canara Robeco Bluechip Equity Fund
This fund not only has a 5-star rating from Crisil, but, also a 5-star rating from Value Research. The fund has given exceptional returns of 12 per cent in the last 1 year.
The 5-year returns has also been decent at 10.26 per cent on an annualized basis. The growth plan of Canara Robeco Bluechip Equity currently is available at a net asset value of Rs 27.20.
The portfolio is pretty good and comprises names like Reliance Industries, HDFC Bank, Infosys, ICICI Bank, TCS, HDFC among others.
The minimum in investment in the fund is Rs 1,000. For those looking at long-term investment the portfolio can generate good returns.
2. Axis Bluechip Fund
This is another fund that has a 5-star rating from Crisil. Axis Bluechip Fund invests its money in largecap stocks, so to that extent the volatility of returns is significantly reduced. Axis Bluehip Fund has given a returns of 8.27 per cent over the last 3-years and 10.20 per cent over the last 5 years,
One can invest in this fund through the SIP route with a small amount of Rs 1,000 every month. The portfolio of Axis Bluechip Fund has names like HDFC Bank, Infosys, Bajaj Finance and Reliance Industries. For those looking to invest the growth plan it is available at an NAV of Rs 30.70.
95 per cent of the portfolio is currently parked in stocks and the remaining in debt.
3. UTI Equity Fund
UTI Equity Fund unlike Canara Robeco Bluechip Equity Fund and Axis Bluechip Fund is not a largecap fund, but, a multi-cap fund. These multi-cap funds invest in largecap stocks, midcap stocks and small cap stocks.
The returns can be slightly more volatile when compared to largecap stocks. UTI Equity Fund has generated a 5-year returns of 9.24 per cent on an annualized basis, while the 7-year returns has been 14.48 per cent.
If you had invested through the SIP route of Rs 10,000 every month for the last three years, the same would have grown to Rs 4.06 lakhs.
Those looking to invest in the fund for the long-term can generate decent returns.
4. Axis Midcap Fund
This is another fund that has a -star rating from Crisil. This is a midcap fund, which means the fund invests in companies that are much smaller in size than largecap funds. The returns can therefore be more volatile.
Axis Midcap Fund has generated a 3-year returns of 9.17 per cent, while the 5-year returns has been 10.07 per cent on an annualized basis. Axis Midcap Fund also has a 5-star rating from Value Research. The portfolio is very much solid and has names like IPCA Labs, PI Industries, Avenue Supermarts etc.
5. JM Largecap Fund
This fund too has been accorded the highest rating from Crisil. About 80 per cent of the portfolio is invested in equity, while the remaining portion comprises dent and cash equivalents. The top 10 stocks of the fund comprises 50 per cent of the portfolio.
The growth fund is available at an NAV of Rs 69.74.
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.