Besides other safe avenues that prove efficient and profitable in the long run such as EPF, PPF, NPS investors increasingly are lapping up mutual funds via the SIP route that help to meet long term retirement planning needs. Typically, these mutual funds are retirement led or retirement oriented mutual fund schemes that offer a mix of both debt and equity and have a lock in of 5 years or till the retirement age, whichever is earlier.
Though as per experts here it is to be very well made clear that when you invest for a longer term say spanning some decades, none can be sure of a scheme as how far can it be rewarding and basis the scheme’s some of the parameters such as Sharpe Ratio etc. you can only know of the past and cannot predict with certainty its future performance.
So, as a prudent investor you should take a call by investing in schemes that have a consistent track record and keep tracking it on a time to time basis and make asset allocation your broader criteria for investment instead of fund allocation.
1. SBI Bluechip fund (Growth):
It is a CRISIL 3-star rated fund from the large cap fund category. NAV of the fund as on February 24, 2020 is Rs. 40.77. Expense ratio is 1.66%. You can start a SIP in the fund for as less as Rs. 500 and for one time investment you would need Rs. 5000. Top holdings of the fund include HDFC Bank, ICICI Bank, L&T, ITC, Nestle etc.
SBI Bluechip fund (Growth) 0.8 10.9 16.7 8.7 7.8
The scheme for a five year duration with an investment of Rs. 1000 per month has provided an annualized yield of 8.52% returning an investor a total sum of Rs. 74388.53.
This should typically be banked upon if you have an investment horizon of atleast 3-4 years.
2. Canara Robeca Bluechip Equity Fund- Regular (Growth plan):
This is a CRISIL 5-star rated fund and can be highly rewarding with based on its past performance. The expense ratio of the fund is 2.47% and NAV as on February 24 is Rs. 28. Top holdings of its portfolio include HDFC Bank, ICICI Bank, RIL, Infosys, HDFC etc.
SIP in the fund can be started for a minimum of Rs. 1000 while for one-time investment you would need Rs. 5000.
Canara Robeca Bluechip Equity Fund- (Growth plan) 6.51 18.63 24.28 14.02 –
In contrast to the category average return of just 13.06%, the scheme has delivered 21.5% return in one-year period.
Also, if SIP route is taken in the fund then in 5-year period the fund offered an annualized yield of 13.25%.
3. Kotak Standard Multicap fund:
It is a CRISIL 4-star rated fund and
NAV of the fund as on February 20, 2020 is Rs. 38.262. Expense ratio of the fund is 1.65%. Top holdings of the fund is ICICI Bank, HDFC Bank, RIL, Axis Bank etc.
Kotak Standard Multicap fund 2.95 12.97 18.87 11.40 –
The scheme with multi-caps shall be suited for investors willing to take slightly higher risk at the cost of high returns.
With an investment worth Rs. 1000 per month in the funds’ SIP, the 5-year annualized yield is at 11.82%.