IDBI India Top 100 Equity Fund
This fund was rated No. 1 by Crisil in the large cap category, which is the highest rating by Crisil, one of the top credit rating agencies in India. The growth plan for IDBI India Top 100 Equity Fund is available at Rs 38.18.
The minimum investment required is Rs 1,000 to start a SIP. IDBI India Top Equity Fund has stocks like HDFC Bank, Reliance Industries, ICICI Bank and Infosys in its portfolio. While we have written about these highly rated equity funds, we do not recommend any of them and only underline the ratings. The reason is that mutual fund performance is quite dynamic and what looks good today may not be good tomorrow. We believe that the stock markets are overvalued and investors should not have high exposure to equity mutual funds in the form of a lump sum. SIPs are a better strategy to follow.
The 3-year returns of the fund were 19.77% on an annualized basis, while the 5-year returns were 14.67% on an annualized basis.
Kotak Bluechip Fund
This fund was also rated n Â° 1 by Crisil. Again, a good and consistent performance of mutual funds over the past year. The fund has generated returns of 19.52% in the last 3 years and 15.83% in the last 5 years. Investors who plan to invest for 3 years or more might consider this fund.
It is also imperative to remember that track record is not an indication of future performance. Most mutual funds have the same set of stocks in their portfolio, especially the top 5 are normally HDFC Bank, Infosys, Reliance Industries, ICICI Bank, etc. Therefore, the performance of most large cap mutual funds does not vary much.
Investors have the option to also invest via the SIP channel in the Kotak Bluechip Fund which is a better option.
Axis Bluechip Fund
The Axis Bluechip Fund has been rated 5 stars by Morningstar as well as Value Research. In fact, we’ve been seeing these odds for a long time now. This fund has been a regular performer of the large capitalization space. The portfolio includes names like Bajaj Finance, ICICI Bank, HDFC Bank, etc.
This fund makes sense for those who are long term investors. However, given that the stock markets have seen a prolific rally in the past year, the returns are huge over the past 1 and 3 years. To expect similar returns in the future would be too much to expect. Stocks are expensive right now, and returns could be more subdued in the future.
Investing in equity mutual funds is risky and investors are advised to be cautious. Only invest if you want to take risks. Please note that neither Greynium Information Technologies Pvt Ltd nor the author is responsible for any losses caused as a result of decisions based on the article.