most of mutual funds India has more or less the same flavor on offer, forcing investors to look at the ratings given by various reputed rating agencies like Morningstar, Value Research, CRISIL, ICRA, etc. In fact, a mutual fund’s rating works as an overall measure of both. Risk and Return as it gives an idea about the risk and reward involved in a mutual fund scheme. Investors strongly believe that a mutual fund with more stars is always better. However, it is always advisable to look at fund ratings rather than past performance. As past performance can turn out to be a recipe for disaster, looking at the current fund rating can help an investor choose a better option.
Here we list down two mutual fund SIP schemes that have been awarded 5-star ratings by Value Research and CRISIL:
1]Mirae Asset Emerging Blue-chip Fund: This mutual fund primarily invests in a combination of large and medium-sized companies, giving the fund managers reasonable flexibility. According to data from Value Research, if an investor has invested ₹1 lakh in this mutual fund plan three years ago. one’s absolute value ₹1 lakh would have been invested ₹1.91 lakh today. However, if an investor had started ₹10,000 monthly SIP in this regular plan 3 years ago, would have been the full value of one’s investment ₹6.17 lakh today.
If this ₹Had invested 1 lakh 5 years ago, then ₹1 lakh would have turned into a lump sum investment ₹2.65 lakh today while ₹10,000 would have turned into the full investment value of the monthly SIP ₹11.40 lakhs.
Value Research Mutual Fund advises investors to invest in this scheme through monthly SIP mode if the investor has a time-horizon of 5 years or more.
2]Canara Robeco Blue-Chip Equity Fund: This fund invests in large-cap companies. Compared to funds that invest in small and medium-sized companies, such funds tend to fall less in bearish markets. According to data from Value Research, if an investor has invested ₹3 years ago 1 lakh lumpsum in this fund, the absolute value of one’s investment would have become ₹1.82 lakhs. However, if an investor had invested in this scheme through monthly SIP ₹10,000, would have been the absolute value of one’s investment today ₹5.73 lakhs.
Similarly, if an investor had invested ₹1 lakh lump sum 5 years ago, the absolute value of one’s investment was ₹2.36 lakh today. However, in the case of ₹10,000 monthly investment started 5 years ago in this direct plan would have turned into absolute value ₹10.79 lakh today.
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