9 Best SIPs ...For Long Term Investors
By Vikas Deshmukh
Systematic Investment Plans (SIPs) are increasingly gaining popularity, especially among the young working class. SIPs are a systematic way of investing small amounts each month, thereby enabling you to generate returns over the long to medium term in equity shares or debt. Here are 9 SIPs that investors could consider for long-term investing.
1. Axis Bluechip Fund - Growth
There are very few funds that have generated positive returns in the last one year. Among them is Axis BlueChip Fund.The Fund has generated a solid return of 12.70 per cent in the last 5 years. It has managed to generate pretty decent returns, despite the heightened volatility in the markets. The 5-year returns of Axis Bluechip Fund has also been pretty decent at around 11 per cent. Among the large cap funds, this has probably stood-out in terms of returns. The fund has holdings in Kotak Mahindra Bank, Bajaj Finance, HDFC Bank, ICICI Bank, Infosys and TCS. Interestingly, while most funds have HDFC Bank as their top holdings, the top holding of Axis Bluechip Fund is Kotak Mahindra Bank.
2. Mirae Asset Large Cap Fund - Growth
This is another fund that has given good returns in the last 3 and 5 years. It compares well with Axis Bluechip Fund that has beaten most other funds in its category in 3 and 5 year returns. The 3-year returns from Mirae Asset Large Cap Fund - Growth has been close to 10.60 per cent, while the 5-year returns have been a 12 per cent. It has investment in the likes of HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank etc. The portfolio is well geared to meet long term growth from the fund. One can invest in SIPs of small amounts of Rs 1,000 each month. Go for it, if you are looking for long-term growth story.
3. ICICI Prudential Bluechip Fund - Growth
ICICI Prudential Bluechip Fund - Growth is another fund that has generated decent returns when compared to peers. It is a large cap fund, with assets under management of Rs 21,125 crores. The 5-year returns has been 9.08 per cent, which may have been more or less like bank FDs. HDFC Bank, ICICI Bank, Infosys and Bharti Airtel are among the top holdings of ICICI Prudential Bluechip Fund. You can invest in the fund through a small SIP of as little as Rs 100 every month. Long term investors may benefit, as investing in the stock market calls for a greater amount of patience.
4. Axis Midcap Fund - Growth
While all of the above three mentioned are large cap funds, Axis Midcap Fund as the name suggests is largely a midcap fund, which is meant to generate returns from companies that have medium capitalization. It is well rated by Crisil, with a rating of 5 star in its category. Returns from the fund have been better than most peers, on a longer duration. It is important to remember that midcap funds are risky as compared to most other funds and hence one must exercise a fair amount of caution. One can invest in the fund with a minimum SIP of Rs 1,000.
5. Tata Midcap Growth Fund
This is another fund that has generated decent returns in the last few years. Crisil has accorded a 5-star rating to the fund. The 5-year returns from the fund has been 10.88 per cent, which is rather reasonable. The assets under management of the fund is Rs 608 crores, which is not too large. Tata Midcap Growth Fund has holdings in Bata India, Voltas, United Breweries, PI industries etc. If you want to purchase the current NAV is Rs 129.35. This is a good scheme for those looking to invest for the more long-term.
6. Canara Robeco Equity Diversified
If you are looking at multi cap funds, which invest money in large, mid and small size, than multicap funds are a good option. Canara Robeco has a 5-star rating from Crisil, with pretty decent returns.
The fund has generated returns of 9.39 per cent in the 5-year period. Canara Robeco Equity Diversified has holding in most bluechip including the likes of HDFC Bank, ICICI Bank, L&T and Reliance Industries. Those looking to invest for the long-term, this is not a bad option. SIP amounts are also not too large.
7. HDFC SmallCap Fund
If individuals are looking at higher risk, the best place to be would be small cap funds. HDFC Small Cap Fund has generated decent returns of 11.82 per cent in the last 5 years. Value Research Online has accorded the fund a 5-star rating. The minimum SIP for the fund is Rs 500. We recommend HDFC SmallCap Fund because of its past track record, as well as solid holdings. Among its holdings include Sonata Software, DCB Bank, NIIT Technologies, Chambal Fertilizers etc. We wish to reiterate that small cap stocks are risky and hence investors should exercise some caution before investing.
8. L&T Emerging Business Fund - Growth
This is another great fund to be in from the long to medium term. The fund has been rated as 5-star by Value Research Online. It's holdings too are pretty strong including the likes of Sanofi India, Sobha, Mahanagar Gas, KPR Mills, BEML, Grindwell Norton. At the moment, we have seen midcaps, not doing too well. However, as and when they recover we would see funds like L&T Emerging Business fund - growth doing rather well. Currently, one can invest through Systematic Investment Plans, through a small sum of Rs 1,000 every month. The net asset value of L&T Emerging Business Fund - growth is Rs 21.50.
9. HDFC Top 100 Fund - growth
This is a fund that has been rated as 5-star by Crisil. It has sizeable assets of Rs 17,000 crores under management. HDFC Top 100 Fund The fund has holdings in ICICI Bank, HDFC Bank and Reliance Industries. Since it invests in the top 100, the fund sticks to the large cap stocks. If you are a medium to long term investors, this fund is not a bad .
Independent Financial Advisor